First-Half Gains at Bertelsmann

GÜTERSLOH, August 29:
Bertelsmann, which is said to be considering reducing its stake in the RTL
Group, has announced a dramatically improved profit for the first half of the
year, of 372 million euros, from the year-ago period’s 51 million euros.

The profit gain was driven
by improved EBIT of 637 million euros, up from 472 million euros. Consolidated
revenues, however, were down slightly to 7.6 billion euros, impacted by the
continued weakness of the dollar and the downturn in the economy.

“In view of the difficult
economic conditions, we are satisfied with our business performance for the
first six months of the year,” said Hartmut Ostrowski, the chairman and CEO of
Bertelsmann.

Ostrowski added that the
growth markets of Eastern Europe and Asia are priorities for the company, as
well as expanding into new businesses and ramping up its digital activities.

In a conference call with
journalists and analysts, Ostrowski also noted that Bertelsmann would consider
cutting part of its current 90-percent stake in the RTL Group. However, with
RTL being Bertelsmann’s biggest revenue generator—2.9 billion euros for
the first half of the year—the company plans to retain a majority
75-percent stake.

—By Mansha Daswani