Press Release | Gütersloh, 05/11/2016

Bertelsmann Achieves Record Operating Result in Q1 2016

• Revenues increase to €3.95 billion
• Operating EBITDA up 8 percent to €500 million
• Significant increase in Group profit by approx. 30 percent to €185 million
• New Group structure with eight divisions, further progress made on all strategic priorities

Bertelsmann, the international media, services and education company, achieved revenue growth and a new record in its operating result in Q1 2016. Group revenues increased to €3.95 billion (previous year: €3.92 billion), with organic growth at 2.7 percent. Operating EBITDA improved by 8 percent to €500 million (previous year: €463 million). This significant increase was largely fueled by RTL Group’s European broadcasting and international TV production businesses, Arvato’s services businesses, and Relias’ education business. The EBITDA margin increased significantly from 11.8 to 12.7 percent. Group profit surged by nearly 30 percent to €185 million (previous year: €143 million).

Thomas Rabe, Chairman and CEO of Bertelsmann, said: “Bertelsmann had a very gratifying first quarter. We delivered a record operating performance and significantly improved our Group profit. We are well on our way to making Bertelsmann a faster-growing, more digital and more international company. Our investments and the progress we have made in implementing our strategy prove this. Since January 1, we have worked in a new corporate structure with eight divisions. Based on this strong first quarter, we are confident about the rest of the year.”

During the reporting period, Mediengruppe RTL Deutschland launched the new channel RTL International. It also announced the upcoming launch of the two channels RTL plus and Toggo plus, and the acquisition of the online advertising marketer Smartclip. Penguin Random House saw a strong bestseller performance. In Germany, Gruner + Jahr bought a majority stake in the digital company trnd, and in France launched the travel magazine “National Geographic Traveler.” BMG invested in the British label Ram Records and expanded to Australia.

Arvato laid the groundwork for further expanding its e-commerce services with the announcement that it would be constructing a new logistics center in Dorsten, Germany. Bertelsmann Investments’ funds expanded their activities: Bertelsmann Asia Investments (BAI) invested in the Chinese e-commerce company Xian Life, and Bertelsmann India Investments (BII) acquired a stake in the e-commerce services provider Kart Rocket. BAI also made a significant contribution to the Group’s first-quarter net income thanks to capital gains from disposals.

Bernd Hirsch, Chief Financial Officer of Bertelsmann, said: “We are shaping Bertelsmann’s transformation from a solid financial position. For the full year, we continue to expect an increase in revenues and continued high operating profitability.”

Overview of Figures (in € millions)

About Bertelsmann
Bertelsmann is a media, services and education company that operates in about 50 countries around the world. It includes the broadcaster RTL Group, the trade book publisher Penguin Random House, the magazine publisher Gruner + Jahr, the music company BMG, the service provider Arvato, the Bertelsmann Printing Group, the Bertelsmann Education Group, and Bertelsmann Investments, an international network of funds. The company has 117,000 employees and generated revenues of €17.1 billion in the 2015 financial year. Bertelsmann stands for creativity and entrepreneurship. This combination promotes first-class media content and innovative service solutions that inspire customers around the world.