LONDON (Brand Republic) - Shares in pan-European broadcaster RTL dived 27% this morning as the company announced a 61% fall in full-year profits and a fairly bleak outlook predicted for 2001.
Net profit was €67m (£42m) on earnings of €4.04bn (£2.5bn), up 14% on 1999. The company blamed expansion through acquisitions and the restructuring of Pearson Television for the loss in profits.
The company warned that earnings growth would be limited for the current year because of RTL Radio’s declining audience share in France and the effects of restructuring Pearson Television North America.
Didier Bellens, chief executive of RTL, said, "We have grown our operations, controlled our costs and increased our margins, and we believe we are better placed than most of our competitors to withstand the current uncertainties in advertising markets around Europe."
RTL’s shares were trading at €62 (£39) this morning in London, down from €85.5 (£53.5) yesterday.