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May 14 – 21, 2009 Edition
Profits Fall in First Quarter
Gütersloh/Authorlink News/05/12/09–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. Bertelsmann is the parent company for Random House in the USA.
Revenues from continuing operations totaled 3.5 billion for the first quarter of the new fiscal year (ended March 31, 20090), down from 3.8 billion year on year. The first-quarter operating EBIT was 115 million after 253 million the previous year, while the Groups 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 Groups 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 companys 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.
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. Bertelsmanns 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.
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