Bertelsmann with revenue growth – selective short-time working

Bertelsmann with revenue growth - selective short-time working

After a good business year in 2019, the bertelsmann group considers itself well rested for the current year despite the coronavirus crisis.

Bertelsmann is very liquid and has a good credit rating, said thomas rabe, chairman of the executive board, on tuesday at the presentation of the 2019 annual financial statements in gutersloh. "With the broad base of our businesses, we are less vulnerable to economic fluctuations and can continue to invest in our future without having to cut into our assets."

At the same time, the media, services and education company with more than 126,000 employees worldwide is experiencing the first effects of the coronavirus crisis. Not across the board, but in isolated cases, there is short-time work, said rabe. As an example, he mentioned special areas in the service businesses. "At arvato, for example, in one or two service businesses, we use short-time work and will continue to do so."

According to rabe, magazine publisher gruner + jahr, whose portfolio includes the magazines "stern" and "brigitte," is seeing increased demand for sales and subscriptions. RTL group’s television consumption is on the rise. The publishing group penguin random house is seeing increased demand for digital books, and music streaming is booming at the music company BMG. Downside: in march, there were initial corona effects in the advertising market, which rabe expects to intensify in the second quarter. Book logistics were also affected, he said, because many bookstores had closed down.

In 2019, the group’s earnings also increased thanks to growing digital business. Total sales in 2019 were 18 billion euros, up 2 percent from the previous year’s figure of 17.7 billion euros. Organic growth, i.E. Excluding special effects, was 1.2 percent. At 1.09 billion euros, profit was slightly down on 2018’s 1.1 billion euros. Bertelsmann now generates more than 50 percent of its sales in the digital arena.

An important deal for bertelsmann in 2019 was the acquisition of the remaining 25 percent of penguin random house. This means that the group will in future be the sole owner of the world’s largest publishing group for the general public. Rabe expects the transaction to be completed from the second quarter onwards. Bertelsmann is also pushing ahead with the expansion of cross-group content cooperation ("content alliance") to counter the tech platform competition from the u.S. Such cooperations are also to be formed in the uk, france and the USA.

In addition to penguin random house, the bertelsmann group includes the television group RTL group, the magazine publisher gruner + jahr, the music company BMG, and the service provider arvato. RTL contributes the lion’s share of revenues within the group, followed by arvato.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: