Bertelsmann profits nosedive in Q3

13th November 2014, Comments 0 comments

German media giant Bertelsmann said Thursday that its profits fell sharply in the third quarter owing to writedowns on the Hungarian operations of its RTL subsidiary.

Bertelsmann said in a statement that its net profit amounted to 31 million euros ($39 million) in the period from July to September, down from 204 million euros a year earlier.

But the year-earlier figure had been inflated by one-off gains related to the acquisition of full ownership of the BMG music rights company, the company noted.

In Hungary, Bertelsmann's RTL radio and television group took a 77-million-euro charge on its operations there as a result of an advertising tax imposed by Budapest.

"We are very happy with the financial year to date.

Overall, we have exceeded our expectations: Bertelsmann is growing, is very profitable," said chief executive Thomas Rabe.

Underlying or operating profit grew by 2.

2 percent to 463 million euros on a 0.

2-percent dip in sales to 3.

971 billion euros, lifting the operating profit margin to 11.

7 percent from 11.

4 percent.

The group made no mention of its full-year targets.

But in August it had downgraded them, predicting stable operating profit and slightly low net profit on a "significant" increase in sales.

spm/hmn.


© 2014 AFP

0 Comments To This Article