Bertelsmann impacted by ad-market developments in first quarter
- Revenues and operating profit down
- Focus on strict cost discipline
- Positive stimuli from the services business
Against the backdrop of the global economic crisis, Bertelsmann, the international media group, started the new fiscal year with a decline in revenues and earnings, but was able to partially offset the effects of advertiser and consumer reluctance. Revenues from continuing operations totaled €3.5 billion for the first quarter of the new fiscal year, down from €3.8 billion year on year. The first-quarter operating EBIT was €115 million after €253 million the previous year, while the Group’s net income came to €-78 million (Q1/2008: €35 million). The period under review stands in contrast to a strong first quarter of 2008, which – unlike this year – included the advertising-intensive Easter holidays.
The coming months will continue to be dominated by strict cost discipline at Bertelsmann, to minimize the impact of the crisis on the Group’s business. Positive stimulus comes from the services business, which reports growing demand for outsourcing services.
Bertelsmann continues to expect that the global economic crisis will put a strain on the economy and on the company’s business prospects. For the full year, Bertelsmann expects revenues and operating profit to decline. The degree of year on year change will depend on the intensity and duration of the economic downturn.
Economic debt amounted to €6,716 million at March 31, 2009 (December 31, 2008: €6,627 million). Bertelsmann has issued €750 million in bonds since the beginning of the year to further strengthen its liquidity.
Overview of key figures (in € millions, continuing operations)
Jan 1, 2009 to Mar 31, 2009 | Jan 1, 2008 to | |
| Consolidated revenues | 3,527 | 3,773 |
Operating EBIT by division Corporate/Consolidation Operating EBIT | 140
115 | 281
253 |
Special items | (17) | 2 |
EBIT (earnings before interest and taxes) | 98 | 255 |
Financial result | (126) | (93) |
Earnings before taxes from continuing operations | (28) | 162 |
Income taxes | (50) | (85) |
Earnings after taxes from continuing operations | (78) | 77 |
Earnings after taxes from discontinued operations | (42) | |
Net income | (78) | 35 |
attributable to: Bertelsmann shareholders | (94) | (3) |
attributable to: Minority interest | 16 | 38 |
Investments | 188 | 199 |
At Mar 31, 2009 | At Dec 31, 2008 | |
Economic debt | 6,716 | 6,627 |
Employees | 105,222 | 107,154 |
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 |
|---|---|
| Q1_2009_engl.pdf | 79 kB |
