By Mauro Orru
RTL Group SA said Wednesday that adjusted earnings before interest, taxes and amortization as well as revenue for 2020 are ahead of company guidance and analysts' consensus amid stronger-than-expected TV advertising in Europe, according to preliminary figures.
The Luxembourg-based media company said adjusted Ebita for 2020 came in at about 850 million euros ($1.03 billion), down from EUR1.16 billion in 2019.
However, the result "significantly exceeds" guidance of around EUR720 million for 2020 adjusted Ebita, the company said.
RTL Group said TV advertising markets in Europe performed significantly better than expected in the fourth quarter. Revenue for the year fell to about EUR6 billion from EUR6.65 billion, but still beat guidance of around EUR5.8 billion.
Analysts at U.S. bank Citi said the company's 2020 adjusted Ebita beat Visible Alpha consensus of EUR765.5 million and Citi estimates of EUR734 million, with revenue exceeding Visible Alpha consensus of EUR5.92 billion and Citi estimates of EUR5.85 billion.
The guidance beat could lead to a higher-than-forecast dividend based on the group's policy of paying out at least 80% of net profit, Citi analysts added.
RTL Group will publish 2020 results on March 12.
Write to Mauro Orru at firstname.lastname@example.org; @MauroOrru94
(END) Dow Jones Newswires