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Bertelsmann has said that its "strict cost discipline" and a "2+5 program" have helped improve operating profits in its third quarter despite a decline in sales.
Revenues in the period to end September declined by 4.5% to €3.6bn, compared with €3.8bn, with operating profits up by 14% to €284m, compared with €249m. Its profit margin improved from 6.6% to 7.9%. The group did not break out the results further.
Hartmut Ostrowski, chairman & chief executive of Bertelsmann, said: "Our third-quarter business performance was gratifying, particularly in the context of the economic crisis, to which Bertelsmann is responding resolutely. We are making good progress with the implementation of our '2+5' program, as the increase in our result shows. We’re on the right path." The 2+5 program is based on two guidelines: a decentralised approach and delegation of responsibility, as well as "continuity and value creation". Its "cost and efficiency program" has so far generated savings of more than €900m.
In the nine months of the year to date, group revenues from continued operations came to €10.8bn, compared with €11.5bn, reflecting a 6.6% organic decline in revenues. Operating earnings before interest and taxation amounted to €759m, compared with €934m.