Bertelsmann's 9M revenue rises despite weak TV ad market (updated)

Bertelsmann SE & Co KGaA

08/11/2023 07:59

(Adds details on Majorel stake sale in paragraphs 5-7)
       Nov 8 (Reuters) - Bertelsmann  BTGGg.F  on Wednesday
reported higher nine-month revenue as income from its
publishing, music, services, and education businesses offset
weak TV ad sales at its biggest unit broadcaster RTL.
    For the year through September, revenue stood at 14.6
billion euros ($15.59 billion), up from the previous year's
figure of 14.4 billion, the German media, services and education
conglomerate said in a press release.  
    RTL  AUDK.LU   RRTL.DE , Bertelsmann's biggest subsidiary
which brings about a third of profits, earlier today cut its
annual guidance for a second time this year after reporting
lower year-on-year revenues, weighed down by a weak advertising
market. 
    "Despite an overall social situation that continues to be
challenging, a circumstance that is particularly felt in our TV
advertising business, we have achieved a new revenue record,"
said Bertelsmann's chief executive Thomas Rabe, who is also a
head of RTL Group.  
    The company sees operating earnings before interest, taxes,
depreciation, and amortization (EBITDA) declining in 2023 as it
discounts Majorel's contribution to results as of November this
year. 
    Bertelsmann had said in April it would sell its 39.5% stake
in personnel outsourcing firm Majorel  MAJ.AS  to another
staffing company, Teleperformance  TEPRF.PA , in a deal valuing
the entire company at around 3 billion euros.     
    The main growth drivers at Bertelsmann in the first nine
months of 2023 were the Penguin Random House publishing group,
music company BMG, the Arvato services business and the
Bertelsmann Education Group, the German firm said.
    
($1 = 0.9367 euros)

 (Reporting by Andrey Sychev and Louis van Boxel-Woolf; Editing
by Maria Sheahan)
 ((andrey.sychev@thomsonreuters.com;
louis.vanboxel-woolf@thomsonreuters.com))