As you can see from the "Connecting Data to Report
" help article, html is not supported datasource, moreover currently Telerik Reporting does not operate with HTML content. Exception is when the report is rendered in HTML because the browser that usually displays the report, handles the HTML itself. Unfortunately the rest of the supported formats - Image (GDI), PDF, XLS, RTF do not support HTML out of the box. The good news is that we are working on rich textbox functionality for the Q1 release.
All the best,
the Telerik team
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