Bertelsmann increases operating profit after nine months in fiscal 2007 to €1 billion
- Adjusted revenues up by 1.2 percent to €13.3 billion
- Operating profit reaches €1.0 billion at the nine-month mark
The international media company Bertelsmann increased adjusted revenues and operating profit after nine months of fiscal 2007. Adjusted for portfolio and exchange rate effects, revenues rose by 1.2 percent to €13.3 billion.
Operating EBIT rose by 4.7 percent to €1,028 million (previous year: €982 million). Adjusted for main portfolio effects – the sale of both BMG Music Publishing and its stake in the French pay-TV broadcaster TPS – Operating EBIT increased by 13.6 percent compared to the previous year period. ROS rose to 7.7 percent after nine months, and is now above the comparable figure from last year of 7.2 percent.
In the third quarter of 2007, adjusted revenues were at the level of the previous year at €4.3 billion. Operating EBIT improved during the third quarter by 11.7 percent to €314 million (previous year: €281 million).
According to CFO Thomas Rabe, “Bertelsmann further improved its operating profitability in the first nine months. For the full year, we also expect to exceed the results of fiscal 2006 in terms of revenues and operating results adjusted for portfolio and exchange rate effects.”
Consolidated net income amounted to €132 million after the first nine months (previous year: €384 million). Against the previous year’s period, this primarily reflects the previously reported special items resulting from settlements in connection with Napster. Furthermore, a one-time expense of €96 million arose in the third quarter for the settlement of antitrust proceedings against the advertising time marketer IP Deutschland.
The company is on schedule in repaying its commercial financial liabilities. The rating agencies Standard & Poor’s and Moody’s raised the outlook for the Bertelsmann ratings (“BBB+”/ “Baa1”) to stable in the third quarter.
At the end of September 2007, Bertelsmann employed 101,572 employees worldwide (December 31, 2006: 97,132 employees).
Figures in overview (in € million)
January 1, 2007 – September 30, 2007 | January 1, 2006 – September 30, 2006 1) | |
Group revenues | 13,267 | 13,545 |
Divisional operating EBIT Corporate/consolidation Operating EBIT | 1,080
1,028 | 1,042
982 |
Special items | (388) | (56) |
EBIT (Earnings before interest and taxes) | 640 | 926 |
Net interest result | (194) | (126) |
Other financial expenses and income | (130) | (165) |
Income taxes | (184) | (251) |
Net income | 132 | 384 |
Attributable to Bertelsmann shareholders | 10 | 265 |
Attributable to Minority interest | 122 | 119 |
Investments | 718 | 826 |
Status September 30, 2007 | Status December 31, 2006 | |
Economic debt2) | 6,715 | 6,760 |
Employees | 101,572 | 97,132 |
Definition of operating EBIT: the earnings before financial results and taxes and before special items.
1) adapted due to the change in reporting of actuarial losses in accordance with IAS 19.93A
2) net financial debt plus pension provisions and profit participation capital, excluding changes from IAS 19.93A
About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), music (BMG), media services (Arvato), and media clubs (Direct Group) in more than 60 countries. Bertelsmann’s claim is to inspire people around the world with first-class media and communications offerings – entertainment, information and services – and occupy leading positions in its respective markets. The foundation of Bertelsmann's success is a corporate culture based on partnership, entrepreneurial spirit, creativity, and corporate responsibility. The company strives to bring creative new ideas to market and create value.
Bertelsmann is comprised of the television channels, television production companies, and radio stations of Europe's largest entertainment group, RTL Group (RTL Television, M6, Five, Fremantle Media), and the more than 120 publishing houses of Random House, the world's largest trade book publisher (Alfred A. Knopf, Bantam, Goldmann). Gruner + Jahr is Europe's number one magazine publisher (Stern, Geo, Neon, Capital). The Sony BMG joint venture in the BMG division is synonymous with creativity and strong international music brands (Beyoncé, Dixie Chicks, Justin Timberlake, Christina Aguilera). The Arvato media and communications services division brings together distribution, service centers and customer-relationship management, state-of-the art printing manufacturing, storage media production, mobile services, and comprehensive IT services. Bertelsmann's direct-to-customer businesses are unified within the Direct Group: book, DVD, and music clubs (Der Club, France Loisirs), as well as book retailers in France and Portugal.
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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| Q3_2007_e.pdf | 82 kB |
