Online ads drive Axel Springer
Digital classified ads are becoming a key revenue driver for Axel Springer. In the first quarter of 2015, the German media group (Bild, Die Welt) derived more than 60 percent of its revenue and 70 percent of its operating profit from its digital operations.
The strongest growth was again recorded by classified ads such as job ads and real estate ads, as Axel Springer announced in Berlin on Thursday. Group revenues rose by 12.7 percent to 780.6 million euros, while operating profit (EBITDA) increased only slightly by 1.2 percent to 119.8 million euros. Consolidated net profit fell by 34.4 percent to 43 million euros. The previous year's higher result was mainly due to one-off income from the sale of shares. Due to the internationalization of the digital business, Springer already generates around half of its revenues outside of Germany, said CEO Mathias Döpfner. Classified ad revenues increased by 58.5 percent to 176.2 million euros, while operating profit (EBITDA) rose by almost 47 percent to just under 71 million euros. Revenues from paid offerings remained almost stable at 348.7 million euros. Bild reached more than 260,000 digital subscribers in Germany, while the figure for Welt was 64,000. According to Döpfner, the question of the industry's fate is no longer how to defend paper circulation, but how to earn money with journalism online. (SDA)
