Bertelsmann Significantly Improves First Quarter Operating Results
- First-quarter Operating EBIT improves by 9.6 percent year-over-year
- Adjusted revenues down by 1.7 percent
- Full-year forecast confirmed
Bertelsmann, the international media company, today reported strong first quarter fiscal 2008 results. First-quarter operating profits (Operating EBIT) were up by 9.6 percent compared with the previous year. Operating EBIT for the period under review amounted to €217 million (Q1/2007: €198 million). These developments were driven by the continuing positive performance of the major core businesses. Group net income improved to €35 million (Q1/2007: €-70 million).
Meanwhile, revenues declined by 3.9 percent year-over-year to €4.2 billion. Adjusted for portfolio changes and foreign-exchange effects, revenue decreased 1.7 percent year-over-year. The revenue performance reflected negative foreign-exchange effects due to the Euro’s strength relative to the U.S. dollar and British pound. Revenues were also impacted by declines in sales of physical recordings and revenues at Direct Group in North America.
Adjusted for portfolio changes and foreign-exchange effects, Bertelsmann expects a moderate rise in revenues for 2008. The Company expects operating results for 2008 will be on par or slightly above the high levels seen in 2007. Group net income will be well above 2007 due to fewer special items and lower interest expenditure.
Bertelsmann’s Chief Financial Officer Thomas Rabe said: “We have started the year well in an environment fraught with economic uncertainty. Bertelsmann confirms its full-year forecast for 2008.”
Economic debt was €7.35 billion at March 31, 2008 (December 31, 2007: €7.72 billion), putting the Group below its self-imposed ceiling of 3.0 for the Leverage Factor (ratio of economic debt to operating EBITDA).
The number of employees in the Group grew to 103,140 (December 31, 2007: 102,397).
Figures at a Glance (in million €)
Jan 1, 2008 to Mar 31, 2008 | Jan 1, 2007 to | |
Consolidated Revenues | 4,208 | 4,377 |
Operating EBIT in the divisions Corporate/Consolidation Operating EBIT | 243
217 | 215
198 |
Special items | (3) | (114) |
EBIT (Earnings before interest and taxes) | 214 | 84 |
Financial result | (97) | (90) |
Income taxes | (82) | (64) |
Net income | 35 | (70) |
attributable to: Share of profit of Bertelsmann shareholders | (3) | (117) |
attributable to: Minority interest | 38 | 47 |
Investments | 205 | 248 |
At Mar 31, 2008 | At Dec 31, 2007 | |
Economic debt 1) | 7,351 | 7,720 |
No. of employees | 103,140 | 102,397 |
Definition of Operating EBIT: Operating EBIT refers to the earnings before interest, taxes and special items.
1) Net financial debt plus provisions for pensions, profit participation capital and net present value of operating leases.
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 50 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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| Q1_2008_e.pdf | 91 kB |
