Bertelsmann says Q1 profit soared as it cuts debt

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The German media group Bertelsmann, which owns the broadcaster RTL, said Thursday that its first-quarter net profit had leapt four-fold as it worked to cut debt.

Bertelsmann posted a profit of 64 million euros ($91 million) for the three month period owing in part to lower interest payments on its debt, which has been cut by nine percent from the level in late December to 1.74 billion euros.

First quarter sales also gained close to two percent to 3.63 billion euros, a statement said, with almost all divisions contributing to the results.

Core earnings before interest and tax slumped however by 16.3 percent to 245 million euros as a result of investment costs and seasonal effects, with Easter falling this year in the second quarter.

The privately owned company is considered to be the world's fourth biggest media group.

© 2011 AFP

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