Media conglomerate Bertelsmann raises forecast as revenue grows by 60%

Admin I Wednesday, August 28, 2024

 

BERLIN – German media and services conglomerate Bertelsmann is raising its earnings forecast after a strong start to the year, chief executive Thomas Rabe told dpa on Wednesday.

Bertelsmann cited solid performances at its book business Penguin Random House, music division BMG, and the e-commerce service provider Arvato, as well as at European television and radio giant RTL Group, which is a main revenue driver.

“The growth rates in the first half of the year are above our expectations and we are confident that this positive development will continue in the second half of the year,” Rabe said.

In releasing its earnings results on Wednesday, the company did not offer a specific forecast for the full year, but said it now expects a significant rise in revenue and profit.

Bertelsmann cautioned, however, that the sale of its call centre service business Majorel and its shares in the German regional media group DDV could still weigh on the results.

For the full year 2023, revenue exceeded the €20 billion ($22.2 billion) mark for the second consecutive year, remaining largely stable at €20.2 billion compared to the previous year.

The group result once again surpassed the €1 billion mark, reaching €1.3 billion, an increase from 2022’s €1.1 billion.

In the first six months of the year, group revenue declined by 7.5% in the first half compared to the same period the previous year to €9 billion due to the Majorel sale. Excluding this, organic revenue growth was 3.7%. Group profit increased by 60% to €416 million.