Bertelsmann Improves First Quarter Results Significantly
Company confirms forecast for the year
Bertelsmann, the international media company, increased its first-quarter operating results (Operating EBIT) by EURO 186 million to EURO 111 million in 2004. During the same period in 2003, the company had booked a loss of EURO 75 million.
Bertelsmann's Chief Financial Officer Siegfried Luther commented: "We confirm our forecast of a continued improvement in the operating results for the full fiscal year. As for revenues, we expect business to grow."
First-quarter consolidated revenues amounted to EURO 3,790 million, slightly below the previous year's EURO 3,934 million. Adjusted for portfolio effects, e.g. especially the sale of Bertelsmann Springer, and for currency fluctuations, Bertelsmann generated a 3.0 percent revenue increase during Q1/2004.
Net income before minority interests was at EURO 39 million after minus EURO 399 million the previus year. This marked improvement was the result of the increased operating result, as well as positive special items in the amount of EURO 15 million (2003: minus EURO 68 million). Add to this the fact that amortization of goodwill does not apply under the new accounting standards (IFRS 3). In Q1/2003, this item had amounted to minus EURO 163 million.
The group made investments of EURO 234 million in the first quarter. Net financial debt at March 31, 2004 amounted to EURO 998 million (December 31, 2003: EURO 820 million).
Jan 1, 2004 to Mar 31, 2004 | Jan 1, 2003 to Mar 31, 2003 | |
| Revenues | 3,790 | 3,934 |
Operating EBIT by division | 123 | (56) |
Amortization of goodwill |
|
|
Special items | 15 | (68) |
Profit before financial result and taxes | 126 | (306) |
Net interest | (19) | (33) |
Other financial expense and income | (43) | (48) |
Taxes on income | (25) | (12) |
Net income before minority interests | 39 | (339) |
Minority interests | (8) | 2 |
Net income after minority interests | 31 | (397) |
Investments | 234 | 249 |
At Mar 31, 2004 | At Dec 31, 2003 | |
Net financial debt | 998 | 820 |
Employees | 72,935 | 73,221 |
*Operating EBITA: minus EURO 58 million, amortization of rights, similar to goodwill: minus EURO 17 million.
Definition of Operating EBIT: Operating EBIT refers to earnings before financial result, taxes, amortizations of goodwill and special items. Under the new IFRS 3, regular amortization of goodwill no longer applies. Bertelsmann has adopted IFRS 3 as of January 1, 2004. Operating EBIT is comparable to the Operating EBITA index used in past reporting.
About Bertelsmann AG
The international 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 Bertelsmann Music Group (BMG) with its roughly 200 labels (RCA, Jive, J Records) and artists such as Alicia Keys, Dido and Usher also stand for creativity and powerful brands. Bertelsmann's direct-to-customer businesses are bundled in Direct Group: book and music clubs with 32 million members all over the world. 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.
For further questions, please contact:
Oliver Herrgesell
Senior Vice President Media Relations
Phone: 49 - 5241 - 80 24 66
oliver.herrgesell@bertelsmann.com
Attachment
| Name | Size |
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| Q1_2004e.pdf | 82 kB |
