Axel Springer: Earnings growth and slight decline in revenues in the first quarter
In the first quarter of 2009, Axel Springer recorded earnings growth of 2.1 percent to 80.3 million euros. At 620 million euros, revenues were slightly lower than in the previous year (641.7 million euros). Revenues fell by 3.4 percent from 641.7 million euros to 620 million euros.
In the first quarter of 2009, Axel Springer recorded earnings growth of 2.1 percent to 80.3 million euros. At 620 million euros, revenues were slightly lower than in the previous year (641.7 million euros). Revenues fell by 3.4 percent from 641.7 million euros to 620 million euros.
Axel Springer was able to compensate for the decline in advertising revenues with robust circulation revenues in the first quarter of 2009, as CEO Mathias Döpfner said in Berlin on Thursday. Circulation revenues totaling 289 million euros were only 1.7 percent below the previous year's level. The bottom line for Axel Springer in the first three months of the year was a surplus of 213 million euros, which included proceeds from the sale of minority interests in several regional newspapers. The previous year's figure of 449.9 million euros included a non-recurring effect from the sale of shares in ProSiebenSat.1 Media. Adjusted for such effects, net income increased by 9.7 percent to 34.9 million euros.
In view of the severe economic downturn, the Executive Board expects a dramatic impact on the advertising market for the year as a whole. With strong growth of 26.6 percent in digital advertising revenues, Axel Springer was able to keep the general decline in the advertising business to a mere 8 percent, Döpfner continued.
During the economic crisis, the German media group is relying on its domestic titles and the strong growth of its own Internet offerings. Some of the foreign titles suffered considerably from the consequences of the economic crisis, with revenues in this segment falling by 26 percent to 72.4 million euros. The difficult conditions and exchange rate effects had a particular impact on important markets in Eastern Europe and Spain. In contrast, business in France and Switzerland was relatively stable. With sales of 292.4 million euros, the Newspapers National segment was only 1.4 percent below the previous year's sales of 296.7 million euros.
In Switzerland, Axel Springer owns various TV program guides as well as Bilanz, Handelszeitung and Beobachter, among others.
Axel Springer was able to compensate for the decline in advertising revenues with robust circulation revenues in the first quarter of 2009, as CEO Mathias Döpfner said in Berlin on Thursday. Circulation revenues totaling 289 million euros were only 1.7 percent below the previous year's level. The bottom line for Axel Springer in the first three months of the year was a surplus of 213 million euros, which included proceeds from the sale of minority interests in several regional newspapers. The previous year's figure of 449.9 million euros included a non-recurring effect from the sale of shares in ProSiebenSat.1 Media. Adjusted for such effects, net income increased by 9.7 percent to 34.9 million euros.
In view of the severe economic downturn, the Executive Board expects a dramatic impact on the advertising market for the year as a whole. With strong growth of 26.6 percent in digital advertising revenues, Axel Springer was able to keep the general decline in the advertising business to a mere 8 percent, Döpfner continued.
During the economic crisis, the German media group is relying on its domestic titles and the strong growth of its own Internet offerings. Some of the foreign titles suffered considerably from the consequences of the economic crisis, with revenues in this segment falling by 26 percent to 72.4 million euros. The difficult conditions and exchange rate effects had a particular impact on important markets in Eastern Europe and Spain. In contrast, business in France and Switzerland was relatively stable. With sales of 292.4 million euros, the Newspapers National segment was only 1.4 percent below the previous year's sales of 296.7 million euros.
In Switzerland, Axel Springer owns various TV program guides as well as Bilanz, Handelszeitung and Beobachter, among others.
