Bertelsmann achieves 'record' operating profit

Bertelsmann achieves 'record' operating profit

Bertelsmann has achieved record operating profit in the first nine months of 2015, the company said.

In results released today (12th November) the company, which owns 53% of Penguin Random House, said as of 30th September group revenues were up by 2.8% year-on-year to €12.2bn (£8.6bn) from €11.8bn (£8.3bn). Operating EBITDA were up 7.4% year-on-year from €1.5bn (£1.06bn) to a record €1.6bn (£1.13bn).

Group profit “surged”, said Bertelsmann, nearly doubling to €573m (£404m).

Bertelsmann chairman and c.e.o. Thomas Rabe, said: “2015 has been a very gratifying year for Bertelsmann, to date. We stepped up our growth momentum in the third quarter, and in the first nine months achieved an operating profit that clearly exceeds our previous record.

“This good business performance is accompanied by progress in implementing our strategy to make Bertelsmann a faster-growing, more digital, and more international company. Our latest investments in the growth platform of education are a good example of this.”

In September this year the company established the Bertelsmann Education Group. Among other initiatives, it has acquired a stake in the university services provider HotChalk; increased its shareholding in Udacity, an online education provider for the technology sector; and expanded Relias Learning, an online education provider in the healthcare sector, through its acquisition of RediLearning.

Rabe pointed to successes including Penguin Random House’s publication in English and German of Paula Hawkins’ The Girl on the Train (Doubleday) in early 2015.

Rabe added: “The positive business trend of the first nine months and a good start to the fourth quarter have us optimistic for the full year results. We continue to expect higher revenues and higher operating EBITDA than last year.”