Bertelsmann's Q1 group profit more than doubles year-over-year to €94M on lower interest charges, discontinuation of negative income effects from buyback of profit participation certificates in Q1 2010
Andrew Rogers
GUTERSLOH, Germany
,
May 12, 2011
(press release)
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The international media company Bertelsmann began the 2011 fiscal year with higher revenues and a distinct increase in Group profit. First-quarter consolidated revenues from continuing operations grew to €3.63 billion (previous year: €3.56 billion). Nearly all divisions contributed to this increase. At €245 million, Operating EBIT did not quite reach the previous year’s record figure of €293 million, partly due to start-up and program investments, as well as seasonal effects (the Easter ad sales business took place after the first quarter this year). Concurrently, Group profit more than doubled to €94 million (previous year: €45 million), thanks to a considerably improved financial result. The latter reflects lower interest charges in the wake of successful debt reduction, and the discontinuation of negative income effects from the buyback of profit participation certificates in Q1 2010.
The Group further paid down its debt during the period under review. At March 31, 2011, net financial debt was €1,741 million (December 31, 2010: €1,913 million). Economic debt amounted to €4,591 million (December 31, 2010: €4,915 million).
About Bertelsmann AG
Bertelsmann is an international media company encompassing television (RTL Group), book publishing (Random House), magazine publishing (Gruner + Jahr), media services (Arvato), and media clubs (Direct Group) in more than 50 countries. Bertelsmann’s claim is to inspire people around the world with first-class media and communications offerings – entertainment, information and services – and occupy leading positions in its respective markets. The foundation of Bertelsmann's success is a corporate culture based on partnership, entrepreneurial spirit, creativity, and corporate responsibility. The company strives to bring creative new ideas to market and create value.
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