Bertelsmann Reports Record Earnings, Revenues for ‘06

GUTERSLOH, March 22: Announcing its 2006 results,
Bertelsmann has reported that revenues were up 7.9 percent to 19.3 billion
euros, while net profit more than doubled to 2.4 billion euros.

The company referred to 2006 as the most successful year in
its history, with operating EBIT up 16 percent to a new record of 1.9 billion
euros, and operating return on sales also reached a new high at 9.7 percent, up
from 9 percent in 2005.

All corporate divisions of Bertelsmann except BMG improved
their financial performance year on year. Particular gains were reported at the
RTL Group, thanks in part to an improved ad market and a strong performance at
FremantleMedia. RTL Group saw revenues increase by 10.3 percent to 5.6 billion
euros.

Bertelsmann Chairman and CEO Gunter Thielen noted: “The
figures for 2006 clearly show that we are heading in the right direction.
Bertelsmann has never been more profitable. Our 9.7 percent return on sales
puts us very close to our ambitious target ROS of ten percent. At this level of
profitability, we can generate the cash flow necessary to continue growing
without additional debt. We are already preparing for the next period of
growth. We plan to actively shape the digital future, worldwide, with our
innovative media content and services.”