Bertelsmann has begun the 2014 fiscal year with considerable revenue growth and a record operating result. The international media and services group’s consolidated revenue from continuing operations rose sharply by 8.5 percent during the first-quarter reporting period to €3.90 billion (previous year: €3.60 billion). The increase was driven by Arvato’s takeover of the e-commerce service provider Netrada and by the past year’s acquisitions, e.g. the Penguin Random House merger, the acquisition of full ownership in the BMG music rights company; and the purchase of the financial services provider Gothia. The adjusted operating result before interest, taxes, depreciation and amortization (Operating EBITDA) soared to a record €433 million (previous year: €418 million). At €104 million, net income was below the previous year’s result (€207 million), which included positive effects of €114 million from the revaluation of BMG.
Thomas Rabe, Chairman and CEO of Bertelsmann, said: “Bertelsmann has benefitted from a successful start this year. Our operating performance is good, and last year’s major transactions are paying off. We invested heavily in our content and services businesses in the first three months of 2014 and have made significant progress in putting our strategy into action. In the months ahead, we will expand our education business. In the long term, this sector will become a third mainstay of Bertelsmann’s business, alongside media content and services.”
Source: Bertelsmann Press Release
