The pan-European TV and radio broadcaster and producer RTL, which owns Channel Five, has reported an 11% fall in revenue in the first quarter of 2009 and expects profits to be "considerably down" this year due to the severe downturn in the European TV ad market.

RTL, 90% owned by German company Bertelsmann, reported group revenue of €1.19m (£1.05bn) in the three months to the end of March, down from €1.3bn (£1.16bn) for the same period a year ago.

"RTL Group had to cope with a tough economic environment in the first quarter of 2009 as TV advertising markets across Europe declined by double digit rates," the company said in an interim management statement.

Reported earnings before interest, tax and amortisation fell by 53.7% to €87m (£77.5m).

RTL said the fall in earnings had been due to "decreases across all profit centres" as well as €9m restructuring costs and €18m start-up losses in its operation in Greece.

"Given the current state of the advertising markets and the very short-term bookings cycle, it is impossible to give reliable full-year guidance," said RTL in its interim management statement. "But it has to be expected that the profitability level will be considerably down compared to 2008."

In March RTL wrote down the value of Five by more than half due to the worsening advertising market in the UK.

The same month, Five announced it was cutting 87 jobs, about a quarter of its workforce, as part of a "comprehensive restructuring" plan.

RTL reiterated that the company is reviewing "all costs and structures" in response to the slowdown in advertising.

"This process will result in a significantly lower cost base across the group's core businesses which will be fully implemented by the year 2011," said RTL. "Until then, the group expects a steady increase in cost savings."

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