Bertelsmann: Quarterly Results Influenced By US Market And Weak Dollar
First-quarter figures below previous year / Forecast for full year still valid
The tougher market situation in the U.S., along with the weakness of the US dollar, has made itself felt in Bertelsmann's quarterly results. While revenues and profits for the first three months of this year were lower than last year's figures, Bertelsmann continues to expect Operating EBITA for the full year to exceed that of the previous year. Comments Bertelsmann CFO Siegfried Luther: "The results are in line with our expectations and reflect the difficult overall economic situation. However, we still expect to make our targets for 2003 and resolutely strengthen our operating business. Therefore, we are sticking to the forecast we issued at the annual press briefing, namely that we will achieve Operating EBITA above that of the previous year."
In the first three months of 2003, Bertelsmann generated revenues of EURO 3.9 billion, vs. EURO 4.3 billion during Q1/2002. First-quarter Operating EBITA amounted to minus EURO 58 million, as opposed to EURO 20 million the previous year. Special items totaled minus EURO 60 million (Q1/2002: EURO 0 million) and were caused by the restructuring and integration of the Zomba music company at BMG. After the group's EURO 180 million in regular amortization of goodwill and similar rights (previous year: EURO 199 million), capital losses of EURO 8 million, net interest of EURO 33 million, other financial expense and income (minus EURO 48 million) and taxes (minus EURO 12 million), quarterly losses before minority interests amounted to EURO 399 million.
During the previous year, proceeds from the sale of AOL Europe had led to a quarterly profit of EURO 2.5 billion.
Figures at a Glance (in EURO millions)
| Bertelsmann Group | Jan 1, 2003 to Mar 31, 2003 | Jan 1, 2002 to Mar 31, 2002 |
Revenues | 3,934 | 4,301 |
Operating EBITA by division Corporate/ Consolidations | (39) (19) | 59 (39) |
Operating EBITA | (58) | 20 |
Special items | (60) | 0 |
Amortization of goodwill and similar rights - regular - impairments | (180) 0 | (199) 0 |
Capital gains / losses | (8) | 2,797 |
| (306) | 2,618 |
Net interest | (33) | (18) |
Other financial expense and income | (48) | (44) |
Taxes on income | (12) | (25) |
Net income before minority interests | (399) | 2,531 |
Minority interests | 2 | 7 |
Net income after minority interests | (397) | 2,538 |
Investments | 249 | 1,792 |
| At Mar 31, 2003 | At Dec 31, 2002 | |
Net financial debt | 2,719 | 2,741 |
Employees | 79,719 | 80,632 |
About Bertelsmann AG
Bertelsmann, a media and entertainment company, 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, Siedler Verlag, Goldmann). Gruner + Jahr, the European No.1 in magazine publishing (stern, GEO, Capital, Femme Actuelle, Family Circle, Parents), Bertelsmann Music Group (BMG) with its roughly 200 labels (RCA, Arista, Jive, J Records) and artists such as Alicia Keys, Dido and Pink, as well as the special-information publisher BertelsmannSpringer also stand for creativity and powerful brands. Bertelsmann's direct-to-customer businesses are bundled in DirectGroup: book and music clubs with more than 40 million members all over the world. The arvato corporate division bundles the group's media services, which include the expanding units arvato logistics services and arvato direct services (distri-bution, service centers, customer relationship management), along with state-of-the-art printers, storage media production and comprehensive IT-services.
Attachment
| Name | Size |
|---|---|
| BAG_Internet_neu_Q1_engl.pdf | 77 kB |
