The Bertelsmann media group's profits fell massively in 2007 due to expensive legal disputes and the sale of the music publishing business. Net income amounted to only 405 million euros, compared to 2.5 billion euros a year earlier. The operating result fell from 1.867 billion euros to 1.811 billion euros, as the Gütersloh-based group announced in Berlin on Tuesday. Turnover was also impacted by the weak dollar. At 18.8 billion euros, turnover was 2.8 percent below the previous year's figure.
The book clubs - once Bertelsmann's core business - performed particularly poorly last year. This division is therefore to be sold in North America.
Europe's number one in the publishing and media business is expecting moderate sales growth of one to two percent in 2008. Net income is expected to at least double due to the absence of special effects.

 The German media conglomerate Bertelsmann generated more revenue in the first half of 2007 but posted significantly lower profits. For the first time in its history, Europe’s largest media company employed more than 100,000 people worldwide. Adjusted revenue rose by 1.3 percent compared with the same period last year to 9.0 billion euros, Bertelsmann announced on Tuesday. Operating profit climbed by 1.9 percent to 714 million euros. However, net income plummeted from 354 million euros to 51 million euros. According to CEO Gunter Thielen, this was primarily due to costly settlements in the dispute over the music-sharing service Napster.
The various Bertelsmann units performed differently in the first half of 2007. The RTL television division continues to gain momentum and posted a new record result. The Gruner + Jahr magazine group also performed well. In contrast, the Direct Group club division slipped into the red.