RTL Group S.A. (RRTL.DE) | Investment Case

1. Company Snapshot

1.a. Company Description

RTL Group S.A., an entertainment company, operates television (TV) channels and radio stations, and provides streaming services in Germany, France, the Netherlands, Belgium, the United Kingdom, the United States, and internationally.The RTL Deutschland segment operates RTL, Vox, Super RTL, Toggo Plus, NTV, Nitro, Vox Up, and RTL Up free-to-air channels; RTL Crime, RTL Passion, RTL Living, GEO Television, and Now! thematic pay channels; and RTL Zwei, an equity participation in the free-to-air channel.This segment also offers streaming service RTL+; engages in content activities, such as the production companies RTL Studios and RTL News; and provision of RTL Radio Deutschland and ad-tech business, Smartclip.

The Groupe M6 segment operates television channels; radio stations; and digital services, including mobile applications and IPTV services.The Fremantle segment is involved in the content production comprising of distribution and licensing business.The RTL Nederland segment operates RTL 4, RTL 5, RTL 7, RTL 8, RTL Z, RTL Lounge, RTL Crime, and RTL Telekids TV channels; and Videoland, a pay streaming service, as well as offers RTL XL, a catch-up TV service in the Netherlands.

The Other segment operates RTL play, a streaming service; RTL-TVI; RTL Klub; Club RTL; RTL Most, a streaming platform; RTL Televizija; RTL 2; RTL Kockica children's channels; RTL Luxembourg; RTL Radio Letzebuerg; and RTL Tele Letzebuerg, a general interest TV channel.The company was founded in 1924 and is based in Luxembourg City, Luxembourg.RTL Group S.A. is a subsidiary of Bertelsmann Capital Holding GmbH.

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1.b. Last Insights on RRTL

RTL Group's recent performance was driven by the acquisition of Sky Deutschland from Comcast, a strategic move to bolster its European presence. This deal, valued at up to $617 million, underscores the company's efforts to adapt to the evolving media landscape. Additionally, the sale of non-core assets and a focus on digital transformation are expected to yield long-term benefits. Furthermore, RTL Group's commitment to share buybacks, as evident from its recent repurchase of shares, demonstrates its confidence in its financials and commitment to shareholder value.

1.c. Company Highlights

Last Price	33.25
Change Percentage	0.45%
Open	33.25
Previous Close	33.1
Market Cap ( Millions)	5145
Volume	60154
Year High	38.9
Year Low	25.55
M A 50	33.92
M A 200	34.25

FCF Yield	12.89%
Dividend Yield	6.42%
ROE	8.76%
Debt / Equity	44.57%
Net Debt / EBIDTA	179.49%
Price To Book	1.86
Price Earnings Ratio	20.2
Price To FCF	7.76
Price To sales	0.83
EV / EBITDA	8.56

2. Transcript Summary

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3. NewsRoom

Bertelsmann Names 35-Year-Old Scion as CEO in Generational Shift

Nov -13

Source:

Calculating The Fair Value Of RTL Group S.A. (ETR:RRTL)

Oct -14

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RTL Group S.A.'s (ETR:RRTL) Stock's Been Going Strong: Could Weak Financials Mean The Market Will Correct Its Share Price?

Sep -23

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Why RTL Group S.A. (ETR:RRTL) Could Be Worth Watching

Sep -02

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RTL Group First Half 2025 Earnings: €0.14 loss per share (vs €0.45 profit in 1H 2024)

Aug -13

Source:

Comcast Sells Sky Deutschland to RTL as Media Deals Pick Up in Europe

Jun -27

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Adidas Shareholders to Oppose Chair’s Re-Election

May -14

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Estimating The Fair Value Of RTL Group S.A. (ETR:RRTL)

May -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.11%)

6. Segments

RTL Deutschland

Expected Growth: 5%

RTL Deutschland's 5% growth is driven by increasing advertising revenue from its strong TV broadcasting presence, growing digital video advertising on its streaming platform, TV Now, and expanding content production business. Additionally, the company's focus on targeted advertising and data analytics capabilities also contribute to its growth.

Fremantle

Expected Growth: 4%

Fremantle's 4% growth driven by increasing demand for premium content, expansion into new markets, and strategic partnerships. RTL Group's global reach and production capabilities also contribute to growth. Additionally, Fremantle's diversified portfolio of TV shows, including reality TV and drama, appeals to a broad audience, further fueling growth.

Groupe M6

Expected Growth: 3%

Groupe M6's 3% growth is driven by increasing advertising revenue from its TV channels, expansion of its digital offerings, and strategic acquisitions. The French media market's steady growth, coupled with M6's strong brand portfolio, including M6, W9, and 6ter, also contribute to its growth. Additionally, the group's focus on digital transformation and cost optimization efforts support its growth momentum.

RTL Nederland

Expected Growth: 4%

RTL Nederland's 4% growth is driven by increasing advertising revenue, fueled by a strong Dutch economy and growing demand for digital video advertising. Additionally, the company's focus on content diversification, including the expansion of its streaming service, Videoland, and investments in digital media, contribute to its growth momentum.

Other

Expected Growth: 2%

RTL Group S.A.'s 'Other' segment growth is driven by increasing demand for digital media, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on diversifying its revenue streams, investing in emerging technologies, and building a strong online presence contribute to its growth.

7. Detailed Products

TV Channels

RTL Group S.A. operates a diverse range of TV channels across Europe, offering a wide range of programming including entertainment, news, and sports.

Radio Stations

RTL Group S.A. operates a network of popular radio stations across Europe, offering a diverse range of music, news, and entertainment programming.

Content Production

RTL Group S.A. produces a wide range of content, including TV shows, films, and digital media, through its production companies such as Fremantle and UFA.

Digital Media

RTL Group S.A. operates a range of digital media platforms, including online video platforms, websites, and mobile apps.

Advertising and Marketing

RTL Group S.A. offers a range of advertising and marketing solutions to its clients, including TV, radio, and digital advertising, as well as content marketing and sponsorship opportunities.

8. RTL Group S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

RTL Group S.A. operates in a highly competitive industry, with many substitutes available to consumers. However, the company's strong brand recognition and diversified portfolio of media brands help to mitigate the threat of substitutes.

Bargaining Power Of Customers

RTL Group S.A.'s customers have limited bargaining power due to the company's strong market position and diversified revenue streams.

Bargaining Power Of Suppliers

RTL Group S.A. relies on a diverse range of suppliers, including content providers and broadcasting infrastructure providers. While suppliers have some bargaining power, the company's scale and diversification help to mitigate this risk.

Threat Of New Entrants

The media industry is highly competitive, and new entrants can easily disrupt the market. RTL Group S.A. faces a high threat of new entrants, particularly from digital media companies.

Intensity Of Rivalry

The media industry is highly competitive, with many established players competing for market share. RTL Group S.A. faces intense rivalry from other media companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	22.63%
Debt Cost	4.95%
Equity Weight	77.37%
Equity Cost	8.24%
WACC	7.50%
Leverage	29.25%

11. Quality Control: RTL Group S.A. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

A-Score: 7.0/10

Value: 7.6

Growth: 2.3

Quality: 7.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

TF1

A-Score: 6.9/10

Value: 8.2

Growth: 3.6

Quality: 6.4

Yield: 9.4

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Orange Polska

A-Score: 6.5/10

Value: 7.3

Growth: 4.1

Quality: 4.5

Yield: 8.1

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

SES

A-Score: 6.1/10

Value: 8.6

Growth: 2.1

Quality: 3.2

Yield: 10.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

RTL Group

A-Score: 5.8/10

Value: 6.0

Growth: 2.2

Quality: 5.5

Yield: 8.8

Momentum: 7.0

Volatility: 5.3

1-Year Total Return ->

ITV

A-Score: 5.4/10

Value: 6.1

Growth: 3.3

Quality: 5.5

Yield: 8.1

Momentum: 5.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.32%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.50%

RTL Group S.A. - LU0061462528

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on RRTL

1.c. Company Highlights

Higher Yield

Lower Growth

Cheaper

Weak Momentum

Medium Volatility

Stable Momentum

Average Growth

Fairly Valued

Revenues Miss

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.11%)

6. Segments

RTL Deutschland

Expected Growth: 5%

Fremantle

Expected Growth: 4%

Groupe M6

Expected Growth: 3%

RTL Nederland

Expected Growth: 4%

Other

Expected Growth: 2%

7. Detailed Products

TV Channels

Radio Stations

Content Production

Digital Media

Advertising and Marketing

8. RTL Group S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: RTL Group S.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.25$

Current Price

33.25$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA