Bertelsmann slips further into the red
The Bertelsmann media group continues to suffer from the economic crisis. Due to high write-downs, it slipped even further into the red in the second quarter. The largest cost-cutting program in the company's history is intended to remedy the situation.
The Bertelsmann media group continues to suffer from the economic crisis. Due to high write-downs, it slipped even further into the red in the second quarter. The largest cost-cutting program in the company's history is intended to remedy the situation.
The company posted a loss of 333 million euros in the first half of 2009 due to special items, Bertelsmann announced on Monday according to SDA. In the same period last year, the media group had made a profit of 372 million euros. Revenues amounted to 7.2 billion euros, compared to 7.7 billion euros in the previous year. The operating result fell by almost a third to 475 million euros.
Savings of over 900 million euros planned
Europe's largest media group is responding to the red figures with an extensive savings program, with Group CEO Hartmut Ostrowski publicly specifying the savings target for the first time on Monday: savings of more than 900 million euros are planned this year alone through strict cost discipline. The savings program already underway will also cost jobs: Bertelsmann already had 3700 fewer employees at the end of the first half of the year than at the end of 2008, but there are no targets for job cuts, a spokesperson explained.
Bertelsmann hopes to be able to cushion the impact of the recession with the savings, which should take full effect in the second half of the year. In the second quarter, the declines in revenues and operating profit were already less severe than at the beginning of the year. Nevertheless, Bertelsmann continues to expect weaker results for the year as a whole than in 2008. The management has so far left open the question of whether the company will be able to close the year with a profit.
The company posted a loss of 333 million euros in the first half of 2009 due to special items, Bertelsmann announced on Monday according to SDA. In the same period last year, the media group had made a profit of 372 million euros. Revenues amounted to 7.2 billion euros, compared to 7.7 billion euros in the previous year. The operating result fell by almost a third to 475 million euros.
Savings of over 900 million euros planned
Europe's largest media group is responding to the red figures with an extensive savings program, with Group CEO Hartmut Ostrowski publicly specifying the savings target for the first time on Monday: savings of more than 900 million euros are planned this year alone through strict cost discipline. The savings program already underway will also cost jobs: Bertelsmann already had 3700 fewer employees at the end of the first half of the year than at the end of 2008, but there are no targets for job cuts, a spokesperson explained.
Bertelsmann hopes to be able to cushion the impact of the recession with the savings, which should take full effect in the second half of the year. In the second quarter, the declines in revenues and operating profit were already less severe than at the beginning of the year. Nevertheless, Bertelsmann continues to expect weaker results for the year as a whole than in 2008. The management has so far left open the question of whether the company will be able to close the year with a profit.
