Mumbai: Bertelsmann has posted a net profit of €387 million, which is almost triple that of the previous year’s €132 million.
Bertelsmann has achieved revenues almost at the level of the previous year in its continuing operations. Operating EBIT remained below that of the previous year. EBIT and net profit increased significantly.
Consolidated revenues reached €11.4 billion in the end of third quarter, down 0.7 percent year-on-year (€11.5 billion). Adjusted for portfolio and exchange rate effects, revenues rose by 1.6 percent. After nine months, Operating EBIT reached €926 million (previous year: €1.03 billion). The return on sales amounted to 8.1 percent. EBIT increased to €823 million compared to €692 million in the same period of the previous year, when high special items were incurred.
Bertelsmann CFO Thomas Rabe said "Bertelsmann is strategically well positioned and financially sound, which represents a competitive advantage in the current difficult market situation. Our businesses have a good risk diversification; we have a long-term orientation and a balanced maturity profile of our capital market liabilities. For the full year 2008, we are expecting slightly higher revenues than in the comparable period of the previous year for continuing activities. In view of the subdued economic outlook, Operating EBIT will come in 5 to 10 per cent lower year-on-year, while EBIT and consolidated net income are expected to rise significantly given the elimination of certain special items and lower tax expense."
In the first months of the year, the Bertelsmann Executive Board made wide-reaching portfolio decisions, which improved the growth profile of the company. Since the beginning of the year, Bertelsmann has given up its 50 percent share in the music company Sony BMG and the North American club business. The sales proceeds from the Sony BMG transaction were received in October 2008 and are not therefore included in the third quarter.