|
MUMBAI:
Global mgdia company Bertelsmann has announced its results
for 2007.
It
stabilised its operating profitability at a high level. Operating
EBIT totaled €1,811 million after the record figure of
€1,867 million in the previous year. Adjusted for portfolio
measures and exchange rate movements, operating EBIT increased
by 3.7 per cent.
Due to the disposal of the group’s music publishing operations
and the weakness of the US dollar, consolidated revenues declined
by 2.8 per cent to €18.8 billion. In the previous year,
it was €19.3 billion.
Thus,
operating return on sales again reached 9.7 per cent. However,
group net income was down considerably year-on-year. In 2006,
the equivalent figure contained high disposal gains. Due to
negative non-recurring items, group net income in the reporting
period totaled €405 million compared to €2.5 billion
in the previous year.
In
2007, the television business was again a growth driver. With
its channels and production, the television, radio and TV
production group, the RTL Group, posted a strong rise in revenues
and operating EBIT. The media and communications service provider
Arvato, also increased revenues with operating EBIT reaching
the high posted in the previous year.
In
terms of sales and operating EBIT, the magazine publisher,
Gruner + Jahr was down compared to the previous year due to
the weakness in gravure printing business, as was the case
with the book publishing group, Random House, where sales
and result were strongly impacted by the development of the
dollar.
After the sale of the music publishing operations, revenues
and operating EBIT in the BMG division declined. In a difficult
business environment, BMG increased its operating results
adjusted for portfolio effects from €90 million to €93
million. In 2007, Direct Group recorded a considerable decline
in the revenues and earnings contribution. It was necessary
to take a high impairment loss on the North American club
activities.
Bertelsmann
chairman and CEO Hartmut Ostrowski says, “Bertelsmann
was successful in 2007. After the record results of the previous
year, we retained a stable position. We are strong in operating
terms and are profitable at a high level. In 2007, we made
extensive value corrections and removed risks such as the
Napster legal dispute with the relevant expenses in order
to prepare the ground for the new strategic alignment on organic
growth. It is only on the basis of growth that the value of
a company can be increased further on a long term-basis.”
In
the course of its new growth strategy, Bertelsmann will focus its funds for investments
in strongly growing business. Ostrowski describes the resulting consequences for
the Direct Group saying, “We are examining all strategic options, including
a possible sale.” | 
