Bertelsmann Posts First-Half Loss

GÜTERSLOH: Bertelsmann, the parent company of the RTL Group, has released its first-half results, with revenues down 7 percent to 7.2 billion and a net loss of 333 million euros.

The European media behemoth noted that the loss—as compared with a 372 million euros profit last year—stemmed from several one-time costs. The company’s operating EBIT fell to 475 million euros from 685 million euros, as a result of the ad downturn and slowdown in consumer spending. However, Bertelsmann pointed to the gains made by its cost-cutting efforts.

“Our strict cost discipline is beginning to have a significant positive financial impact," said CEO Hartmut Ostrowsk. "Every division, including Group headquarters has systematically reviewed all costs and structures. The packages of measures that were put together as part of this program are extremely wide-ranging and varied and will save us over 900 million euros this year alone. We are resolutely countering the decline in advertising-related revenues. The top priority at this point is to stabilize Bertelsmann’s existing businesses, preserve liquidity, and safeguard the operating result. In this way, we will continue to develop our company and create the conditions for future growth.”

RTL Group remains the biggest contributor to Bertelsmann’s revenues, with 2.6 billion euros in the first half, followed by Arvato (2.2 billion euros), Gruner + Jahr (1.2 billion euros and Random House (734 million euros.)