Bertelsmann reports solid business development after three quarters
After nine months of the 2008 financial year, Bertelsmann reported a solid business development. The international media company achieved revenues almost at the level of the previous year in its continuing operations. Operating EBIT remained below that of the previous year. EBIT and net profit increased significantly.
Consolidated revenues reached €11.4 billion to the end of third quarter, down 0.7 percent year-on-year (€11.5 billion). Adjusted for portfolio and exchange rate effects, revenues rose by 1.6 percent. After nine months, Operating EBIT reached €926 million (previous year: €1.03 billion). The return on sales amounted to 8.1 percent. EBIT increased to €823 million compared to €692 million in the same period of the previous year, when high special items were incurred. At €387 million, net income almost tripled (previous year: €132 million).
Bertelsmann CFO Thomas Rabe explained: “Bertelsmann is strategically well positioned and financially sound, which represents a competitive advantage in the current difficult market situation. Our businesses have a good risk diversification; we have a long-term orientation and a balanced maturity profile of our capital market liabilities. For the full year 2008, we are expecting slightly higher revenues than in the comparable period of the previous year for continuing activities. In view of the subdued economic outlook, Operating EBIT will come in 5 to 10 per cent lower year-on-year, while EBIT and consolidated net income are expected to rise significantly given the elimination of certain special items and lower tax expense.”
In the first months of the year, the Bertelsmann Executive Board made wide-reaching portfolio decisions, which improve the growth profile of the company. Since the beginning of the year, Bertelsmann has given up its 50 percent share in the music company Sony BMG and the North American club business. The sales proceeds from the Sony BMG transaction were received in October 2008 and are not therefore included in the third quarter.
As of the end of September 2008, Bertelsmann had 101,347 employees worldwide (on like-for-like basis as of December 31, 2007: 93,660 employees).
Overview of key figures (€ million, continuing operations)
January 1, 2008 – September 30, 2008 | January 1, 2007 – September 30, 2007 | |
| Consolidated revenues | 11,379 | 11,454 |
Operating EBIT by division Corporate/Consolidation Operating EBIT | 1,009
926 | 1,091
1,033 |
Special items | (103) | (341) |
EBIT (Earnings before interest and taxes) | 823 | 692 |
Financial result | (306) | (310) |
Earnings before taxes from continuing operations | 517 | 382 |
Income taxes | (30) | (181) |
Earnings after taxes from continuing operations | 487 | 201 |
Earnings after taxes from discontinued operations | (100) | (69) |
Net income | 387 | 132 |
attributable to: Share of profit of Bertelsmann shareholders | 285 | 10 |
attributable to: Minority interest | 102 | 122 |
Investments | 691 | 693 |
Balance as of September 30, 2008 | Balance as of December 31, 2007 | |
Economic debt | 7,569 | 7,720 |
Employees | 101,347 | 93,660 |
The corresponding figures for the previous period have been adjusted in accordance with IFRS 5.
About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), 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.
For further questions, please contact:
Andreas Grafemeyer
Senior Vice President Media Relations
Phone: +49 – 52 41 / 80 24 66
andreas.grafemeyer@bertelsmann.de
Attachment
| Name | Size |
|---|---|
| Q3_2008_e.pdf | 81 kB |
