What recession? Bertelsmann income leaps threefold in Q3
EmptyGerman media giant Bertelsmann shrugged off the international economic crisis in the third quarter, tripling its net income to €387 million ($494 million), the company said Tuesday.
Consolidated revenue dipped slightly, dropping 0.7% to €11.4 billion ($14.6 billion), but that decline was largely because of exchange-rate effects and portfolio changes. Bertelsmann's sale of its 50% stake in Sony BMG back to Sony was completed in October and thus not included in the third-quarter figures.
"Bertelsmann is strategically well positioned and financially sound, which represents a competitive advantage in the current difficult market situation," CFO Thomas Rabe said.
Despite this, Rabe is still forecasting a 5%-10% drop in operating EBIT profits for the full year because of the global economic decline.
The company's businesses include publisher Random House, broadcaster RTL and, since October, Berlin-based music company BMG Rights Management. The new company will begin operations in January, exploiting and marketing music rights from European acts across the continent. (partialdiff)