UK and US entertainment business struggles impact bottom line

Maxton Hall 1

Amazon Prime Video series Maxton Hall was highlighted as a creative success for Fremantle last year

A drop in revenue from Fremantle’s entertainment businesses contributed to an overall decline in parent RTL’s 2025 performance.

Group revenue for the year ending 31 December was down 3.8% year-on-year to €6bn (£5.2bn), which RTL attributed to lower TV advertising revenue and less income from Fremantle’s entertainment business, particularly in the UK and US. The super-indie’s revenue was down 9.4% year-on-year to €2bn (£1.7bn).

Despite declines, Fremantle reported an increased adjusted EBITA and profit margin to its highest level since 2013, putting it on track to reach the target margin of 9% in 2026. To improve its growth, the super-indie will continue to invest significantly in content development, acquire small and medium-sized production companies with proven IP base, as well as rolling out further use of AI across the company. Fremantle launched AI label Imaginae Studios last year, focused on leveraging the tech’s solutions, technologies and tools for the creative industry.

RTL highlighted the super-indie’s creative successes last year, including Element Pictures’ feature Bugonia, which was nominated for multiple Oscars and Baftas, Amazon Prime Video series Maxton Hall and Hotel Costiera, Netflix’s Sullivan’s Crossing, Evil Influencer and The Monster of Florence, and its reboot of Baywatch for Fox.

Fremantle also set up unscripted formats label Fremantle Global Originals to capitalise on IP creation.

RTL Group’s adjusted EBITA was in line with guidance at €661m (£570m), with an 11% margin. Total advertising revenue dipped 2.9% to €3bn, with TV advertising dropping 7% year-on-hear to €2.2bn (£1.9bn). However, its digital revenue offset this somewhat with a 27.7% year-on-year jump to €517m (£446m).

RTL warned the “volatile” geopolitical and macroeconomic landscape continues to make it difficult to forecast its impact on the group. It expects its full-year results for 2026 to increase to somewhere between €6.1bn (£5.2bn) to €6.2bn (£5.3bn), and adjusted EBITA to be around €725m, due to its streaming services turning profitable.

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