Bertelsmann reports considerable growth in first-quarter revenues and earnings

  • Operating results hit new high
  • Positive forecast for fiscal year 2006 confirmed

The international media company Bertelsmann recorded considerable growth in its revenue and operating results for the first quarter of 2006. Consolidated revenues rose by 17.3 percent to €4.5 billion, vs. €3.8 billion in the first three months of 2005. Bertelsmann achieved growth both in its European core markets and in the U.S. An essential contributor to this positive performance were the acquisitions made in fiscal year 2005, which were not yet consolidated in the first quarter of 2005. Adjusted for portfolio and currency effects, revenue was up by 4.5 percent. Operating EBIT grew by 35.2 percent to a record €215 million (2005: €159 million), an increase that is attributable to positive business performance in the divisions. Bertelsmann confirms its forecast of a significant year-on-year improvement in revenue and result for fiscal year 2006.

Bertelsmann’s Chief Financial Officer Thomas Rabe said: “Bertelsmann got off to an excellent start this year. The record first-quarter results continue the positive business development of 2005. Building on this strong foundation, Bertelsmann is well-equipped to meet the challenges of the future. We will pursue outside opportunities and continue to rely on healthy core businesses, systematic acquisitions and expansion to new markets.”

Net income nearly doubled year on year, reaching €90 million after €48 million in the first quarter of 2005. Investments during the first quarter of 2006 amounted to €309 million (2005: €200 million). Economic debt at March 31, 2006 was €3.9 billion as expected (December 31, 2005: €3.9 billion). The number of employees increased to 89,409 (December 31, 2005: 88,516).

Figures at a Glance (in € millions)

Jan 1, 2006 to
Mar 31, 2006

Jan 1, 2005 to
Mar 31, 2005 1)

Revenues

4,463

3,804

Operating EBIT by divisions

Corporate/Consolidation

Operating EBIT

240


(25)

215

176


(17)

159

Special items

9

(30)

EBIT (Earnings before interest and taxes)

224

129

Net interest

(27)

(10)

Other financial expenses

(51)

(51)

Income taxes

(56)

(20)

Net income

90

48

of which: Share of profit of Bertelsmann shareholders

51

33

of which: Minority interest

39

15


Investments

309

200


At Mar 31, 2006

At Dec 31, 2005

Economic Debt

3,863

3,931

Employees

89,409

88,516


Definition of Operating EBIT: Operating EBIT refers to earnings before interest, taxes and special items.

1) The figures for the first quarter of 2005 have been adjusted to reflect IAS 32.

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 the BMG music division – comprised of the Sony BMG joint venture (Anastacia, Alicia Keys, Beyoncé, Dido, Usher) and BMG Music Publishing – also stand for creativity and powerful brands. The Arvato 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. Bertelsmann’s direct-to-customer businesses are bundled in Direct Group: book and music clubs with more than 35 million members all over the world.

For further questions, please contact:

Andreas Grafemeyer

Senior Vice President Media Relations

Phone: +49 – 5241 – 80 24 66

andreas.grafemeyer@bertelsmann.de
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