Bertelsmann and Gruner + Jahr make less profit
The two German media giants, Bertelsmann and Gruner + Jahr, reported a decline in profits of 66.5 percent and 14.8 percent, respectively, last year. However, their profits still amounted to 410 million and 342 million Swiss francs, respectively.
In the past financial year, the Gütersloh-based media giant Bertelsmann's consolidated profit slumped to 410 million euros, compared to 616 million francs a year earlier. The reasons for this included provisions for restructuring and write-downs in the British TV business. "The global economic crisis, with its impact on consumer behavior and advertising bookings, is also putting Bertelsmann to the test in some areas," Bertelsmann CEO Hartmut Ostrowski told Werben & Verkauf. The publishing house's Executive Board members have announced that they will forgo at least 50 percent of their salaries in the current year to help cut costs.
Hamburg-based magazine publisher Gruner + Jahr also suffered a decline in profits in 2008. Operating EBIT fell by 14.8 percent to 342 (previous year: 401) million francs. The return on sales fell significantly to 8.1 percent, compared to 9.3 percent in 2007. The reason for this was a "slump in the advertising markets in the second half of the year and the continuing weakness in consumption", according to the statement. Group sales also fell by 2.2 percent to 4.3 billion Swiss francs. This affected the German, Spanish, French and Polish markets.
Gruner + Jahr discontinued several titles last year that were no longer economically viable. These included Park Avenue in Germany, Gala in the Netherlands, Life & Style in Russia and Bien dans ma vie in France. In addition, the weakening business press was realigned with its magazines Capital, Impulse and Börse Online.
Hamburg-based magazine publisher Gruner + Jahr also suffered a decline in profits in 2008. Operating EBIT fell by 14.8 percent to 342 (previous year: 401) million francs. The return on sales fell significantly to 8.1 percent, compared to 9.3 percent in 2007. The reason for this was a "slump in the advertising markets in the second half of the year and the continuing weakness in consumption", according to the statement. Group sales also fell by 2.2 percent to 4.3 billion Swiss francs. This affected the German, Spanish, French and Polish markets.
Gruner + Jahr discontinued several titles last year that were no longer economically viable. These included Park Avenue in Germany, Gala in the Netherlands, Life & Style in Russia and Bien dans ma vie in France. In addition, the weakening business press was realigned with its magazines Capital, Impulse and Börse Online.
