Bertelsmann confirms forecast despite decline in advertising and profits
Despite the slump in TV advertising and a decline in profits, the Bertelsmann Group is sticking to its full-year forecast.
"I remain confident that we can achieve full-year revenues of around 21 billion euros and Ebitda at the previous year's level," Bertelsmann CEO Thomas Rabe told Deutsche Presse-Agentur on Wednesday. "We see the portfolio effects that the temporary weakness at RTL, especially in the advertising markets, will be compensated in terms of revenue by the other divisions."
Commenting on the earnings outlook - in the first half of the year, Group earnings were significantly below the figure for the first half of 2022 - Rabe added: "We will generate Group earnings of well over one billion euros, which is also related to the fact that we will make a high profit on the sale of Majorel." The Bertelsmann CEO expressed confidence that the sale of the shares in the call center subsidiary Majorel "will go through this year."
Significant decline in sales
The international media, services and education company posted consolidated earnings of 260 million euros in the first half of the year. Compared to the first half of 2022, this represents a significant decline - at that time, it was 492 million euros.
Among other things, Bertelsmann cited a lower operating result and restructuring measures as the reasons. These include the realignment of the magazine division (Gruner+Jahr) at RTL Germany, the realignment of the U.S. book business at Penguin Random House and the rotogravure site closures Liverpool and Ahrensburg near Hamburg.
Bertelsmann generated revenues of 9.7 billion euros in the first six months (H1 2022: 9.3 billion). Organic growth amounted to 2.3 percent. Operating earnings before interest, taxes, depreciation and amortization (Ebitda) were almost 1.3 billion euros, below the half-year 2022 figure of just over 1.4 billion euros. Bertelsmann also attributed the decline to the weak TV advertising markets.
There was revenue growth in Arvato's services business, the Penguin Random House book business, the BMG music division and the Education Group. (SDA)
