Annual Report 2020
| Notes | 2020 €m | 20191 €m | |
| Revenue | 6.1. | 6,017 | 6,651 |
| Other operating income | 37 | 48 | |
| Consumption of current programme rights | (2,070) | (2,266) | |
| Depreciation, amortisation, impairment and valuation allowance | (248) | (245) | |
| Other operating expenses | 6.2. | (2,950) | (3,112) |
| Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries | (25) | (15) | |
| Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree | 5.2. | 172 | 86 |
| Profit from operating activities | 933 | 1,147 | |
| Share of results of investments accounted for using the equity method | 7.5. | 32 | 64 |
| Impairment and reversals of investments accounted for using the equity method | 7.5.1. | (62) | (50) |
| Earnings before interest and taxes ("EBIT") | 903 | 1,161 | |
| Interest income | 6.3. | 4 | 5 |
| Interest expense | 6.3. | (33) | (37) |
| Financial results other than interest | 6.4. | 1 | 27 |
| Profit before tax | 875 | 1,156 | |
| Income tax expense | 6.5. | (250) | (292) |
| Profit for the year | 625 | 864 | |
| Attributable to: | |||
| RTL Group shareholders | 492 | 754 | |
| Non-controlling interests | 133 | 110 | |
| Profit for the year | 625 | 864 | |
| Earnings per share (in €) | |||
| Basic | 6.6. | 3.20 | 4.91 |
| Diluted | 6.6. | 3.20 | 4.91 |
| 1 The figures from the previous year have been adjusted (see note 1.30.) | |||
Notes | 2020 €m | 2019 €m | |
| Profit for the year | 625 | 864 | |
| Other comprehensive income ("OCI"): | |||
| Items that will not be reclassified to profit or loss: | |||
| Re-measurement of post-employment benefit obligations | 7.15. | 8 | (21) |
| Income tax | 7.7. | – | 4 |
| 8 | (17) | ||
| Equity investments at fair value through OCI – change in fair value | 7.6. | 2 | (2) |
| Income tax | 7.7. | (1) | – |
| 1 | (2) | ||
| 9 | (19) | ||
| Items that may be reclassified subsequently to profit or loss: | |||
| Foreign currency translation differences | (52) | 6 | |
| Effective portion of changes in fair value of cash flow hedges | 7.16.4. | (20) | 12 |
| Income tax | 7.7. | 6 | (4) |
| (14) | 8 | ||
| Recycling of cash flow hedge reserve | 7.16.4. | – | (6) |
| Income tax | 7.7. | – | 2 |
| – | (4) | ||
| (66) | 10 | ||
| Other comprehensive income/(loss) for the year, net of income tax | (57) | (9) | |
| Total comprehensive income for the year | 568 | 855 | |
| Attributable to: | |||
| RTL Group shareholders | 434 | 748 | |
| Non-controlling interests | 134 | 107 | |
| Total comprehensive income for the year | 568 | 855 |
Notes | 31 December 2020 €m | 31 December 20191 €m | |
| Non-current assets | |||
| Programme and other rights | 7.1. | 54 | 66 |
| Goodwill | 7.1. 7.2. | 2,871 | 3,026 |
| Other intangible assets | 7.1. | 313 | 323 |
| Property, plant and equipment | 7.3. | 291 | 315 |
| Right-of-use assets | 7.4. | 329 | 380 |
| Investments accounted for using the equity method | 7.5. | 384 | 352 |
| Loans and other financial assets | 7.6. 7.9. | 139 | 148 |
| Deferred tax assets | 7.7. | 333 | 332 |
| 4,714 | 4,942 | ||
| Current assets | |||
| Programme rights | 7.8. | 1,211 | 1,252 |
| Other inventories | 8 | 13 | |
| Income tax receivable | 24 | 33 | |
| Accounts receivable and other financial assets | 7.9. | 2,248 | 2,275 |
| Cash and cash equivalents | 7.10. | 436 | 377 |
| 3,927 | 3,950 | ||
| Assets held for sale | 7.11. | 429 | 88 |
| Current liabilities | |||
| Loans and bank overdrafts | 7.12. | 124 | 157 |
| Lease liabilities | 7.12. | 60 | 59 |
| Income tax payable | 24 | 24 | |
| Accounts payable | 7.13. | 2,201 | 2,778 |
| Contract liabilities | 6.1. | 328 | 299 |
| Provisions | 7.14. | 144 | 97 |
| 2,881 | 3,414 | ||
| Liabilities related to assets held for sale | 7.11. | 234 | 43 |
| Net current assets | 1,241 | 581 | |
| Non-current liabilities | |||
| Loans | 7.12. | 641 | 631 |
| Lease liabilities | 7.12. | 324 | 373 |
| Accounts payable | 7.13. | 347 | 388 |
| Contract liabilities | 6.1. | 4 | 6 |
| Provisions | 7.14. | 238 | 257 |
| Deferred tax liabilities | 7.7. | 48 | 43 |
| 1,602 | 1,698 | ||
| Net assets | 4,353 | 3,825 | |
| Equity attributable to RTL Group shareholders | 3,706 | 3,292 | |
| Equity attributable to non-controlling interests | 7.16.8. | 647 | 533 |
| Equity | 7.16. | 4,353 | 3,825 |
| 1 The figures from the previous year have been adjusted (see note 1.30.) | |||
Notes | Share capital €m | Treasury shares €m | Currency translation reserve €m | Hedging reserve €m | Revaluation reserve €m | Reserves and retained earnings €m | Equity attributable to RTL Group shareholders €m | Equity attributable to non- controlling interests €m | Total equity €m | |
| Balance at 1 January 2019 | 192 | (44) | (135) | 3 | 68 | 2,930 | 3,014 | 505 | 3,519 | |
| Total comprehensive income: | ||||||||||
| Profit for the year | – | – | – | – | – | 754 | 754 | 110 | 864 | |
| Re-measurement of post-employment benefit obligations, net of tax | 7.7. 7.15. | – | – | – | – | – | (14) | (14) | (3) | (17) |
| Equity investments at fair value through OCI – change in fair value, net of tax | 7.16.5. | – | – | – | – | (2) | – | (2) | – | (2) |
| Foreign currency translation differences | 7.16.3. | – | – | 6 | – | – | – | 6 | – | 6 |
| Effective portion of changes in fair value of cash flow hedges, net of tax | 7.16.4. | – | – | – | 8 | – | – | 8 | – | 8 |
| Recycling of cash flow hedge reserve, net of tax | 7.16.4. | – | – | – | (4) | – | – | (4) | – | (4) |
| – | – | 6 | 4 | (2) | 740 | 748 | 107 | 855 | ||
| Capital transactions with owners: | ||||||||||
| Dividends | 7.16.6. | – | – | – | – | – | (461) | (461) | (75) | (536) |
| Equity-settled transactions, net of tax | 7.16.7. | – | – | – | – | – | 4 | 4 | 4 | 8 |
| Changes in treasury shares | 7.16.2. | – | 3 | – | – | – | (1) | 2 | – | 2 |
| Transactions on non-controlling interests without a change in control | 7.16.8. | – | – | – | – | – | (14) | (14) | (7) | (21) |
| Transactions on non-controlling interests with a change in control | 7.16.8. | – | – | – | – | – | – | – | – | – |
| Derivatives on equity instruments | 7.16.9. | – | – | – | – | – | (1) | (1) | (1) | (2) |
| – | 3 | – | – | – | (473) | (470) | (79) | (549) | ||
| Balance at 31 December 2019 | 192 | (41) | (129) | 7 | 66 | 3,197 | 3,292 | 533 | 3,825 | |
| Balance at 1 January 2020 | 192 | (41) | (129) | 7 | 66 | 3,197 | 3,292 | 533 | 3,825 | |
| Total comprehensive income: | ||||||||||
| Profit for the year | – | – | – | – | – | 492 | 492 | 133 | 625 | |
| Re-measurement of post-employment benefit obligations, net of tax | 7.7. 7.15. | – | – | – | – | – | 7 | 7 | 1 | 8 |
| Equity investments at fair value through OCI – change in fair value, net of tax | 7.16.5. | – | – | – | – | 1 | – | 1 | – | 1 |
| Foreign currency translation differences | 7.16.3. | – | – | (52) | – | – | – | (52) | – | (52) |
| Effective portion of changes in fair value of cash flow hedges, net of tax | 7.16.4. | – | – | – | (14) | – | – | (14) | – | (14) |
| Recycling of cash flow hedge reserve, net of tax | 7.16.4. | – | – | – | – | – | – | – | – | – |
| – | – | (52) | (14) | 1 | 499 | 434 | 134 | 568 | ||
| Capital transactions with owners: | ||||||||||
| Dividends | 7.16.6. | – | – | – | – | – | – | – | (5) | (5) |
| Equity-settled transactions, net of tax | 7.16.7. | – | – | – | – | – | 2 | 2 | 3 | 5 |
| Changes in treasury shares | 7.16.2. | – | – | – | – | – | – | – | – | – |
| Transactions on non-controlling interests without a change in control | 7.16.8. | – | 41 | – | – | – | (64) | (23) | (35) | (58) |
| Transactions on non-controlling interests with a change in control | 7.16.8. | – | – | – | – | – | – | – | 16 | 16 |
| Derivatives on equity instruments | 7.16.9. | – | – | – | – | – | 1 | 1 | 1 | 2 |
| – | 41 | – | – | – | (61) | (20) | (20) | (40) | ||
| Balance at 31 December 2020 | 192 | – | (181) | (7) | 67 | 3,635 | 3,706 | 647 | 4,353 |
Notes | 2020 €m | 20191 €m | |
| Cash flows from operating activities | |||
| Profit before tax | 875 | 1,156 | |
| Adjustments for: | |||
| Depreciation and amortisation | 246 | 256 | |
| Value adjustments and impairment | 14 | 26 | |
| Share-based payments expenses | 5 | 8 | |
| Re-measurement of earn-out arrangements | 1 | (1) | |
| Gain on disposal of assets | (171) | (84) | |
| Financial results including net interest expense and share of results of investments accounted for using the equity method | 93 | 62 | |
| Change of provisions | 7.14. | 38 | (20) |
| Working capital changes | 80 | (14) | |
| Income tax paid | (248) | (334) | |
| Net cash from operating activities | 933 | 1,055 | |
| Cash flows from investing activities | |||
| Acquisitions of: | |||
| Programme and other rights | (60) | (87) | |
| Subsidiaries, net of cash acquired | 5.1. | (10) | (235) |
| Other intangible and tangible assets | (118) | (107) | |
| Other investments and financial assets | (22) | (23) | |
| Current deposit with shareholder | 9.1. | (536) | (27) |
| (746) | (479) | ||
| Proceeds from the sale of intangible and tangible assets | 7.1. 7.3. | 2 | 4 |
| Disposal of other subsidiaries, net of cash disposed of | 5.2. | 120 | 102 |
| Proceeds from the sale of investments accounted for using the equity method, other investments and financial assets | 9 | 44 | |
| Interest received | 3 | 4 | |
| 134 | 154 | ||
| Net cash used in investing activities | (612) | (325) | |
| Cash flows from financing activities | |||
| Interest paid | (28) | (27) | |
| Transactions on non-controlling interests | 7.16.8. | (63) | (44) |
| (Acquisition)/disposal of treasury shares | – | 2 | |
| Term loan facility due to shareholder | 9.1. | – | (232) |
| Proceeds from loans | 7.12. | 251 | 134 |
| Repayment of loans | 7.12. | (271) | (7) |
| Payment of lease liabilities | 7.12. | (59) | (59) |
| Dividends paid | (4) | (538) | |
| Net cash used in financing activities | (174) | (771) | |
| Net increase/(decrease) in cash and cash equivalents | 147 | (41) | |
| Cash and cash equivalents and bank overdrafts at beginning of year | 7.10. | 376 | 422 |
| Effect of exchange rate fluctuation on cash held | (16) | 1 | |
| Effect of cash in disposal group held for sale | 7.11. | (72) | (6) |
| Cash and cash equivalents and bank overdrafts at end of year | 7.10. | 435 | 376 |
| 1 The figures from the previous year have been adjusted (see note 1.30.) | |||
Zoom table
| Mediengruppe RTL Deutschland | Groupe M61 | Fremantle | RTL Nederland | Other segments1,2 | Eliminations | Total Group | |||||||||||
| 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | ||||
| Revenue from external customers | 2,124 | 2,258 | 1,263 | 1,445 | 1,346 | 1,591 | 473 | 497 | 811 | 860 | – | – | 6,017 | 6,651 | |||
| Inter-segment revenue | 3 | 4 | 10 | 11 | 191 | 202 | 3 | (1) | 62 | 49 | (269) | (265) | – | – | |||
| Total revenue | 2,127 | 2,262 | 1,273 | 1,456 | 1,537 | 1,793 | 476 | 496 | 873 | 909 | (269) | (265) | 6,017 | 6,651 | |||
| Depreciation, amortisation and impairment3 | (38) | (39) | (100) | (120) | (43) | (43) | (10) | (10) | (61) | (47) | – | – | (252) | (259) | |||
| Impairment and reversals of investments accounted for using the equity method | – | – | (2) | 2 | – | – | – | – | (60) | (52) | – | – | (62) | (50) | |||
| Share of results of investments accounted for using the equity method | 35 | 42 | (5) | 2 | 2 | 2 | 1 | – | (1) | 18 | – | – | 32 | 64 | |||
| Adjusted EBITA | 467 | 663 | 266 | 287 | 87 | 142 | 58 | 54 | (25) | 10 | – | – | 853 | 1,156 | |||
| Adjusted EBITA margin | 22.0% | 29.3% | 20.9% | 19.7% | 5.7% | 7.9% | 12.2% | 10.9% | (2.9)% | 1.1% | n/a | n/a | 14.2% | 17.4% | |||
| Invested capital | 907 | 910 | 1,403 | 1,359 | 1,464 | 1,518 | 203 | 279 | 450 | 568 | (2) | (4) | 4,425 | 4,630 | |||
| 1 In 2020, Groupe M6 has opened Bedrock’s capital, enabling RTL Group to acquire a 50 per cent stake. At 31 December 2020, the technology company Bedrock, specialising in the design and development of streaming platforms, and previously included in “Groupe M6”, is presented in “Other segments”. The segment information for the previous period has not been restated due to the insignificant impact. Further, the amount of invested capital for 2019 was recalculated due to the final purchase price allocation of Gulli, which led to adjustment of prior year figures 2 Following a review of the Group’s segment structure the segment RTL Belgium is presented within “Other segments” from 31 December 2020, onwards. The figures from the previous year have been adjusted accordingly. Other segments include the Adjusted EBITA loss of € -47 million generated by Group Corporate Centre (2019: € -39 million) 3 The figures from the previous year have been adjusted (see note 1.30.) | |||||||||||||||||
The following table shows the reconciliation of segment information to the consolidated financial statements.
| 2020 €m | 2019 €m | |
| Adjusted EBITA | 853 | 1,156 |
| Impairment of goodwill of subsidiaries | (11) | – |
| Impairment and reversals of investments accounted for using the equity method | (62) | (50) |
| Amortisation and impairment of fair value adjustments on acquisitions of subsidiaries | (14) | (15) |
| Re-measurement of earn-out arrangements | (1) | 1 |
| Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree | 172 | 86 |
| Significant special items | (34) | (17) |
| Earnings before interest and taxes (“EBIT”) | 903 | 1,161 |
| Interest income | 4 | 5 |
| Interest expense | (33) | (37) |
| Financial results other than interest | 1 | 27 |
| Profit before tax | 875 | 1,156 |
| Income tax expense | (250) | (292) |
| Profit for the year | 625 | 864 |
In 2020 “Special items” reflects the impact of a restructuring programme at Mediengruppe RTL Deutschland (€27.4 million) and onerous advertising sales contracts (€9.7 million) as well as reversal of a provision at the Corporate Centre in Luxembourg (€2.6 million; 2019: addition of €17 million).
Geographical areas are based on where customers (revenue) and the Group’s non-current assets are located. Goodwill has been allocated to a geographical area based on whether the Group’s risks and returns are affected predominantly by the products and services it produces.
Zoom table| Germany | France | USA | The Netherlands | UK | Belgium | Other regions | Total | |||||||||
| 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | 2020 € m | 2019 €m | 2020 €m | 2019 €m | 2020 €m | 2019 €m | |
| Revenue from external customers | 1,958 | 2,140 | 1,242 | 1,439 | 1,037 | 1,119 | 497 | 527 | 197 | 254 | 187 | 217 | 899 | 955 | 6,017 | 6,651 |
| Non-current assets1 | 1,254 | 1,265 | 1,073 | 1,099 | 439 | 582 | 339 | 343 | 435 | 456 | 75 | 75 | 243 | 290 | 3,858 | 4,110 |
| Assets held for sale | – | – | – | 71 | 427 | 17 | – | – | 2 | – | – | – | – | – | 429 | 88 |
| Capital expenditure1 | 52 | 38 | 104 | 320 | 17 | 15 | 8 | 10 | 18 | 23 | 11 | 22 | 33 | 38 | 243 | 466 |
| 1 The figures from the previous year have been adjusted (see note 1.30.) | ||||||||||||||||
The revenue generated in Luxembourg amounts to €70 million (2019: €72 million). The total of non-current assets other than investments accounted for using the equity method, financial instruments, deferred tax assets and post-employment benefit assets located in Luxembourg amounts to €74 million (2019: €86 million).
| Year to December 2020 €m | Year to December 2019 €m | Year to December 2018 €m | Year to December 2017 €m | Year to December 2016 €m | |
| Revenue | 6,017 | 6,651 | 6,505 | 6,373 | 6,237 |
| of which net advertising sales | 3,330 | 3,659 | 3,655 | 3,657 | 3,594 |
| Other operating income | 37 | 48 | 74 | 148 | 111 |
| Consumption of current programme rights | (2,070) | (2,266) | (2,103) | (2,036) | 2,070) |
| Depreciation, amortisation, impairment and valuation allowance | (248) | (245) | (211) | (223) | (215) |
| Other operating expenses | (2,950) | (3,112) | (3,150) | (3,083) | 2,924) |
| Impairment of goodwill and amortisation and impairment of fair value adjustments on acquisitions of subsidiaries | (25) | (15) | (120) | (17) | (15) |
| Gain/(loss) from sale of subsidiaries, other investments and re-measurement to fair value of pre-existing interest in acquiree | 172 | 86 | 25 | 21 | 6 |
| Profit from operating activities | 933 | 1,147 | 1,020 | 1,183 | 1,130 |
| Share of results of investments accounted for using the equity method | 32 | 64 | 58 | 69 | 67 |
| Impairment and reversals of investments accounted for using the equity method | (62) | (50) | (2) | (6) | – |
| Earnings before interest and taxes ("EBIT") | 903 | 1,161 | 1,076 | 1,246 | 1,197 |
| Interest income | 4 | 5 | 9 | 4 | 6 |
| Interest expense | (33) | (37) | (29) | (26) | (27) |
| Financial results other than interest | 1 | 27 | 7 | (2) | 3 |
| Profit before tax | 875 | 1,156 | 1,063 | 1,222 | 1,179 |
| Income tax expense | (250) | (292) | (278) | (385) | (363) |
| Profit for the year | 625 | 864 | 785 | 837 | 816 |
| Attributable to: | |||||
| RTL Group shareholders | 492 | 754 | 668 | 739 | 720 |
| Non-controlling interests | 133 | 110 | 117 | 98 | 96 |
| Profit for the year | 625 | 864 | 785 | 837 | 816 |
| Adjusted EBITA (€million) | 853 | 1,156 | 1,171 | 1,248 | 1,205 |
| Basic earnings per share (in €) | 3.20 | 4.91 | 4.35 | 4.81 | 4.69 |
| Final dividend per share (in €) | – | – | 3.00 | 3.00 | 3.00 |
| Interim dividend per share (in €) | – | – | 1.00 | 1.00 | 1.00 |
| Dividends paid (€million) | – | 461 | 614 | 614 | 614 |
| Average number of full-time equivalent employees | 10,598 | 10,747 | 10,809 | 11,011 | 10,699 |
| Net assets (€million) | 4,353 | 3,825 | 3,553 | 3,432 | 3,552 |
| Net (debt)/cash (€million) | 236 | (384) | (470) | (545) | (576) |