Bertelsmann Scores Record First-Half Profit

GÜTERSLOH: The German media giant Bertelsmann saw its earnings before interest and tax (EBIT) from continuing operations in the first six months of the year rise 5.2 percent to 768 million euros ($1.02 billion).

In the period from January to June, Bertelsmann’s net profit grew by 10.9 percent to 306 million euros ($405 million). First-half revenue, meanwhile, dipped 1.8 percent to 7.43 billion euros ($9.9 billion).

Earlier this year, Bertelsmann raised $1.9 billion in new capital for its expansion plans by selling off a minority stake in RTL, which operates free- and pay-TV channels across Europe and controls FremantleMedia.

Thomas Rabe, the chairman and CEO of Bertelsmann, said: “The first six months of this year went well for Bertelsmann. Our operating profit reached record levels, and our return on sales was in the double digits, clearly demonstrating that Bertelsmann is reshaping the Group from a position of strength. We have made good progress on our four strategic priorities—strengthening the core, digital transformation, building growth platforms, and expanding our activities in growth regions. In recent months, the combination of Random House and Penguin into the world’s first truly global book publisher, the acquisition of the Gothia Financial Group, and the acquisition of full ownership in our music rights business BMG were milestones that will make Bertelsmann a faster growing, more digital and more international company. Overall, our total investments including assumed financial debt during the first six months of the year came to €1.6 billion. The successful public-trading placement of RTL Group shares gives us the leeway to further advance our Group reshaping.”