Bertelsmann Further Improves Its Operating Performance
Operating EBITA for first nine months rises to EURO 435 million / Profit forecast for 2003 unchanged based on fourth-quarter expectations
Bertelsmann has further improved its operating performance in the first nine months of the year. From January to September 2003, the international media and entertainment company has increased its Operating EBITA to EURO 435 million, from EURO 291 million in 2002. Third-quarter Operating EBITA amounted to EURO 207 million (previous year: EURO 116 Mio). Revenues in the first nine months were EURO 11.7 billion from EURO 13.0 billion in the previous year. Stripping out exchange rate effects and changes in the portfolio, revenues remained nearly even year-on-year. Third-quarter revenues amounted to EURO 3.9 billion after EURO 4.2 billion the previous year.
In addition to the operational improvement, the nine-months total result was mainly influenced by EURO 761 million in capital gains. These were generated primarily by the sale of the Bertelsmann Springer specialist-publishing group and the stake in barnesandnoble.com. The previous year's high comparative figure ( EURO 2.85 billion) is attributable to the disposal of AOL Europe shares. Furthermore, special items - mainly due to the integration of the Zomba music company and restructuring measures at BMG - amounted to minus EURO 76 million for the first nine months (previous year: minus EURO 32 million). The group's regular amortization of goodwill and similar rights amounted to EURO 530 million (previous year: EURO 630 million). Set off against net interest (minus EURO 89 million), other financial expenses and income (minus EURO 147 million) and taxes (minus EURO 155 million), net income before minority interests for the first nine months totaled EURO 162 million (previous year: EURO 1.3 billion). Third-quarter net income before minority interests totaled EURO 20 million (previous year: minus EURO 367 million). At the end of September 2003, net financial debt amounted to EURO 1.45 billion (Dec 31, 2002: EURO 2.7 billion).
Bertelsmann Chief Financial Officer Siegfried Luther said: "Bertelsmann has continued its development of the previous year in the first nine months and has further improved
its operational performance. The fourth quarter of the year is traditionally the strongest in our media business. Therefore, despite the slight decrease in revenues, we maintain our forecast for the full year, and expect to achieve an Operating EBITA above last year's levels."
Overview of key figues (in EURO millions):
1/1/2003 - 9/30/2003 | 1/1/2002 - 9/30/2002 | |
Revenues | 11.733 | 12.991 |
Operating EBITA by divisions | 536 | 418 |
Special items | (76) | (32) |
Amortization of goodwill* and similar rights | (530) | (630) |
Capital gains/losses | 761 | 2.850 |
Earnings before financial result and taxes | 553 | 1.379 |
Net interest | (89) | (38) |
Other financial expenses and income | (147) | (157) |
Income taxes | (155) | 81 |
Net income before minority interests | 162 | 1.265 |
Minority interests | (39) | (35) |
Net income after minority interests | 123 | 1.230 |
Investments | 590 | 2.298 |
9/30/2003 | 12/31/2002 | |
Net financial debt | 1.450 | 2.741 |
No. of Employees | 73.774 | 80.632 |
* Including amortization of goodwill from associated companies
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) and Bertelsmann Music Group (BMG) with its roughly 200 labels (RCA, Arista, Jive, J Records) and artists such as Alicia Keys, Dido and Pink 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 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 (distribution, service centers, customer relationship management), along with state-of-the-art printers, storage media production and comprehensive IT-services.
Attachment
| Name | Size |
|---|---|
| 1_Quartalszahlen_Q3_2003_engl.pdf | 68 kB |
