Bertelsmann records significant profit hike in Q1/2013
Revenues stable at €3.63 billion
Operating EBIT increases to €303 million
Group profit rises 43 percent to €207 million
Bertelsmann recorded a positive business performance in the first three months of the year, increasing both its operating result and net profit to record levels. With consolidated revenues from continuing operations stable at €3.63 billion (previous year: €3.66 billion), first-quarter operating EBIT increased from €279 million in the previous year to €303 million in Q1/2013. The international media company thus achieved a return on sales of 8.3 percent (previous year: 7.6 percent). Net income improved by 43 percent to €207 million (previous year: €145 million). The increase in earnings was driven by increased profitability in almost all the core businesses, and gains from the acquisition of full ownership in the music rights company BMG, which was completed at the end of March.
Thomas Rabe, Chairman and CEO of Bertelsmann, said: “Bertelsmann made a successful start to the year. In a challenging market environment, our businesses again expanded their high profitability over the past few months. The results are at record levels. We also began the year with significant strides in implementing our growth strategy. In recent weeks, we have strengthened two growth platforms with the acquisition of full ownership in BMG and the takeover of the financial services provider Gothia. We are also confident that we will complete the combination of our book publishing group Random House with Penguin early in the second half of the year – since February, we have received important regulatory approvals in the U.S., Europe and other markets. These three transactions will result in considerable overall growth for Bertelsmann in 2013.”
Judith Hartmann, Chief Financial Officer of Bertelsmann, said: “We are pleased with the positive development in the first three months, but the economic conditions remain challenging. The successful placement of RTL shares in May gives us additional financial flexibility for reshaping the Group. Bertelsmann continues to generate high cash flow from operations.”
Bertelsmann is an international media company whose core divisions encompass television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), services (Arvato), and printing (Be Printers) in some 50 countries. In 2012, the company’s businesses, with their more than 100,000 employees, generated revenues of €16.1 billion. Bertelsmann stands for a combination of creativity and entrepreneurship that empowers the creation of first-rate media, communications, and service offerings to inspire people around the world and to provide innovative solutions for customers.