Axel Springer with significantly higher sales
The German media group Axel Springer significantly increased its revenue and slightly increased its profit in the first quarter. The weakness in the German newspaper market was more than compensated for by strong growth in the digital and international business.
As the company announced on Wednesday, turnover increased by 11.0% to 736.7 million euros compared to the same quarter of the previous year, also thanks to acquisitions. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 6.5 percent to 126.9 million euros in the first three months. At 63.0 million euros, the bottom line was a slight plus (previous year 62.3 million euros).
This year, Springer CEO Mathias Döpfner is aiming for a single-digit percentage increase in turnover. Operating profit is expected to rise somewhat more strongly. The Group expects a low double-digit increase here. Döpfner expects the digital and international activities within the Group to continue to gain in importance. In the first three months, these divisions grew by 26% and 58% respectively.
Due to the expansion of the Eastern European business and the expansion of digital activities abroad, the share of international revenues jumped above the 30 percent mark of total revenues. Axel Springer is pursuing its activities in Eastern Europe in a joint venture with the Swiss Ringier Group. The newspaper business in Germany shrank in the first quarter, but remained the Group's most profitable division despite a decline in profits. The company was able to slightly increase its circulation revenues thanks to price increases for Welt and Berliner Morgenpost, among other things.
However, advertising income fell sharply. In Switzerland, various TV program guides as well as the Bilanz, Handelszeitung and Beobachter, among others, belong to the German publishing house. (SDA)
