Bertelsmann Increases Revenue and Earnings

The international media company Bertelsmann increased its revenue in fiscal year 2005 and further improved its profitability. The year was also marked by a series of strategic acquisitions that enabled Bertelsmann to expand its market positions in key business areas. As the company announced on Wednesday in Berlin, consolidated revenue grew from 17.0 billion euros in the previous year to 17.9 billion euros, despite a generally subdued market environment. The 5.1 percent increase was attributable roughly equally to acquisitions and organic growth. Operating EBIT rose by 12.7 percent to 1,610 million euros (previous year: 1,429 million). The operating profit margin stood at 9.0 percent, representing an increase compared with the previous year (8.4 percent). Net income reached another high level at 1,041 million euros, but was below the prior-year figure of 1,172 million, which had included significant positive one-time items. The number of employees worldwide rose to 88,516 at the end of the fiscal year (previous year: 76,266), primarily due to acquisitions but also to the creation of new jobs. In Germany, the number of employees rose by 4,767, of which approximately 1,000 were new positions. The RTL Group, Arvato, and Gruner + Jahr divisions made a significant contribution to operating EBIT in 2005. All of Bertelsmann’s business divisions improved their results compared with the previous year and thus contributed to the positive trend in operating income. For the current year, the Group expects further growth in revenue and earnings.