Bertelsmann Improves Results Considerably In First Nine Months Of 2004
- Operating result rises to EURO 812 million
- Revenue growth at 1.9 percent
- Revenue and earnings forecast for 2004 confirmed
Bertelsmann significantly increased its operating result in the first nine months of the year 2004, from EURO 375 million to EURO 812 million. Revenues rose by 1.9 percent to EURO 12.0 billion (previous year: EURO 11.7 billion). Results continued to improve in Q3/2004: Operating EBIT rose to EURO 216 million (previous year: EURO 189 million). Revenues were stable at EURO 3.8 billion.
Siegfried Luther, Bertelsmann's Deputy Chairman and Chief Financial Officer, said: "Business has been very gratifying in the year to date. We look to the fourth quarter with confidence and continue to expect an improved operating result and slight organic revenue growth for the year 2004 despite a restrained economy."
Net income before minority interests rose considerably to EURO 641 million (previous year: EURO 162 million). In Q3/2004, it amounted to EURO 91 million (previous year: EURO 20 million). Since January 1, 2004, Bertelsmann has applied IFRS 3. As a result of this, regular amortization of goodwill no longer applies. Special items made a clearly lower contribution to net income. Special effects from the Sony BMG Music Entertainment joint venture, which has been existing since August 1, 2004, are not yet included in the third quarter.
Investments for the period under review totaled EURO 588 million (previous year: EURO 590 million). Net financial debt has been reduced by EURO 158 million since December 31, 2003, to EURO 662 million. Bertelsmann had 75,984 employees worldwide at September 30, 2004 (December 31, 2003: 73,221).
Figures at a Glance (in EURO millions)
| Jan 1, 2004 to Sept 30, 2004 | Jan 1, 2003 to Sept 30, 2003 | |
| Revenues | 11,956 | 11,733 |
| Operating EBIT by divisions Corporate/Consolidation Operating EBIT | 874 | 485 |
| Special items | 237 | 648 |
| EBIT (Earnings before interest and taxes) | 1,094 | 1,023 |
| Regular amortization of goodwill | - | (470) |
| Net interest | (52) | (89) |
| Other financial expense and income | (112) | (147) |
| Taxes on income | (244) | (155) |
| Net income before minority interests | 641 | 162 |
| Minority interests | (120) | (39) |
| Net income after minority interests | 521 | 123 |
| Investments | 588 | 590 |
| At Sept 30, 2004 | At Dec 31, 2003 | |
| Net financial debt | 662 | 820 |
| Employees | 75,984 | 73,221 |
Definition of Operating EBIT: Operating EBIT refers to earnings before financial result, taxes, amorti-zation of goodwill and special items. Under the new IFRS 3, regular amortization of goodwill no longer applies. Operating EBIT is comparable to the Operating EBITA index used in past reporting.
About Bertelsmann AG
The media company Bertelsmann commands globally leading positions in the major markets. Its core business is the creation of first-class media content. Bertelsmann includes RTL Group, Europe's No. 1 in television and radio, as well as the world's biggest book-publishing group, Random House, with more than 100 publishing imprints (Alfred A. Knopf, Bantam, Goldmann). Gruner Jahr, the European No.1 in magazine publishing (Stern, Geo, Capital) and Sony BMG Music Entertainment with artists such as Anastacia, Alicia Keys, Beyoncé, Dido and Usher also stand for creativity and powerful brands. Bertelsmann's direct-to-customer businesses are bundled in Direct Group: book and music clubs with more than 30 million members all over the world. The Arvato division bundles the group's media services, which include the expanding units Arvato Logistics Services and Arvato Direct Ser-vices (distribution, service centers, customer relationship management), along with state-of-the-art printers, storage media production and comprehensive IT-services.
For further questions, please contact:
Oliver Herrgesell
Senior Vice President Media Relations
Phone: 49 - 52 41 - 80 24 66
oliver.herrgesell@bertelsmann.com
Attachment
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| Q3_2004_e.pdf | 81 kB |
