Bertelsmann profits nosedive in Q3
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.
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.
© 2014 AFP