Bertelsmann profits soar in first half
German media giant's revenue slips 1.2%
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One-off costs, notably $266 million from an out-of-court settlement with EMI and Warner Music in connection with its investment in file-sharing service Napster, left the conglom in the red last year.
Bertelsmann's revenue in the first half slipped 1.2% to $11.3 million.
Pan-European broadcasting group RTL remains Bertelsmann's main engine, posting a 9% hike in net profits to $577 million and revenue of $4.2 billion, followed by services division Arvato, which saw sales of $3.35 billion; magazine and newspaper publisher Gruner + Jahr, with $2 billion; and book publisher Random House, with $1.1 billion.
Bertelsmann owns almost 90% of RTL, and chief financial officer Thomas Rabe told journalists on a Thursday conference call, "We could imagine buying more but also selling some if the price was right."
In the case of a sale, Bertelsmann would retain a majority of around 75%, Rabe added.
Chairman and chief exec Hartmut Ostrowski said he was satisfied with the company's performance in view of difficult economic conditions, adding that the group was now concentrating on growth.
Earlier this month, Bertelsmann agreed to sell its 50% stake in music group Sony BMG to Sony for $900 million. It is also selling its direct-to-consumer division Direct Group North America to Phoenix-based private investment group Najafi Cos. Bertelsmann reported results for both separately as they are viewed as discontinued activities.
