RTL’s Streaming Division Finally Turns a Profit, But the Stock Tanks

RTL's streaming division swung to a Q1 profit for the first time, but shares fell to a 52-week low amid linear TV declines and pending Sky Deutschland integration.

Luxembourg-based media group RTL delivered a milestone in the first quarter that investors had waited years to see: its streaming arm swung into the black. The 27% surge in streaming revenue to €141 million pushed the division into profitability for the first time during a first-quarter period, a feat that normally only materialises later in the year. Yet the market reaction was brutal. Shares slid 3.31% on Wednesday to €29.20, pushing the stock to a fresh 52-week low and extending the month’s decline past 10%.

The disconnect between operational progress and market sentiment underscores the scale of the challenge facing new chief executive Clément Schwebig, who takes the helm as RTL prepares to integrate Sky Deutschland. The European Commission has given the green light for the €150 million acquisition, which is scheduled to close on 1 June 2026. Pro forma, the combined entity would generate roughly €8 billion in annual revenue and boast a subscriber base of around 12.3 million in the DACH region.

The Sky deal is central to RTL’s strategic pivot away from linear television, a business that continues to bleed. First-quarter linear TV ad revenue fell 6.5% to €474 million, though double-digit growth in digital advertising offset about 45% of that decline. Group revenue held steady at €1.295 billion, with organic growth of 2.5% driven entirely by streaming and content. The production arm Fremantle contributed €372 million, flat year-on-year, while organic growth of 4.2% — led by the US market — offered a small comfort.

RTL’s streaming subscriber base reached 8.4 million paying users, with German platform RTL+ accounting for 7.3 million. The April migration onto the Bedrock technology platform is expected to deliver further cost savings, supporting the full-year streaming profit forecast of €25 million to €50 million. That represents a stark improvement from the €47 million loss recorded in the streaming division in 2025.

Despite the streaming turnaround, the equity story remains stuck in a bearish rut. The stock has shed over 20% in the past 30 days, trading well below the analyst consensus target of roughly €36.75. Barclays maintains a €37 price target, Deutsche Bank holds at €35 with a “Hold” rating, and Bernstein likewise sees fair value at €37. The average target implies significant upside from current levels, but the market clearly needs more than promises.

RTL has attempted to sweeten the pill for shareholders. The €5.50 per share dividend — paid on 5 May — was sharply increased following the sale of RTL Nederland, and an additional buyback programme covering roughly 0.5 million shares has been announced. The full-year guidance remains unchanged: revenue between €6.1 billion and €6.2 billion, adjusted EBITA of around €725 million (a 9.7% rise from last year’s €661 million), and an EBITA margin of roughly 11%.

The leadership transition adds another layer of uncertainty. Schwebig will take over from long-standing CEO Thomas Rabe, while Alexander von Torklus is expected to become chief financial officer by the end of September 2026. RTL plans to update its 2026 outlook in August to reflect the financial impact of the Sky integration. Until then, the market appears to be watching — and waiting — from the sidelines.