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Bertelsmann Reports Healthy Gains in Nine-Month Period

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Nov 8 – Nov 14, 2010 Edition Bertelsmann Reports Healthy Gains in Nine-Month Period

Gütersloh/Authorlink News/November 11, 2010—Media conglomerate Bertelsmann, which owns publisher Random House in the USA, today reported healthy earnings increase for the first nine months of 2010 ending September 30, 2010. The increases were fueled by a recovery in the overall economy including an upturn in the advertising industry; long-view cost measures; and a brisk business performance both in conventional and digital media.

For the nine-month reporting period, Bertelsmann does not break out figures for the Random House, the world’s largest trade book publishing group. But looking back for the first six months of 2010 Random House significantly increased its first-half 2010 sales and operating EBIT, driven by major increases in revenues and profits from its U.S. division and rapidly rising digital sales. Random House revenues grew from €733 million for the first six months of 2009 to €790 million for the same period this year. In the first half of the year, Random House placed 138 titles on the “New York Times” bestseller lists, including the Stieg Larsson Millennium trilogy, which sold 6.5 million print and e-books in the U.S. and Germany during the half year. Random House UK contributed one quarter of the “Sunday Times” bestsellers.

Also for the first six month period, Verlagsgruppe Random House grew its market share in a fl at overall market. Random House U.S. e-book sales surged 300 percent in the first six months, and comparably in Germany and UK. The company’s e-book program in these countries cumulatively expanded to 20,000 titles. The UK Group’s Nigella Lawson digital cooking app became an immediate global bestseller. Random House announced the discontinuation of its publishing operations in Japan and Korea.

For the current nine-month reporting period, Bertelsmann company-wide revenues from continuing operations increased to €11.0 billion in the reporting period, 3.5 percent above the previous year’s comparable value of €10.6 billion. The international media company recorded a surge in profits, both in Operating EBIT and in Group result. Operating EBIT from continuing operations amounted to €1.1 billion, exceeding the previous year’s value of €784 million by 34.3 percent. At 9.6 percent (previous year: 7.4 percent), Return on Sales continued on a high level. As of the end of September 2010, Bertelsmann reported profits of €357 million, after €-246 million in the same period of the crisis-ridden previous year.

Given this positive business performance, Bertelsmann expects an increase in the return on sales for the year of about ten percent, as previously projected, and a Group result of more than €500 million for the full fiscal year 2010.

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 firstclass 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.

Bertelsmann celebrates its 175th anniversary in 2010.