Bertelsmann cuts 2026 outlook on spin-offs (updated)

Bertelsmann SE & Co KGaA

26/03/2024 07:56

(Adds details, background from paragraph 4)
       March 26 (Reuters) - Bertelsmann  BTGGg.F  on Tuesday
slightly cut its outlook for 2026 and now targets group revenue
of around 21 billion euros ($22.79 billion) and operating EBITDA
of around 3.4 billion euros.
    Last year in March, the German media, services and education
conglomerate said it aimed to increase revenues to 24 billion
euros and earnings before interest, taxes, depreciation, and
amortization (EBITDA) to 4 billion euros by 2026.
    In a press release, CEO Thomas Rabe attributed the updated
forecast to the sale of Majorel and the planned sales of RTL
Nederland and DDV Mediengruppe.
        The parent company of German broadcaster RTL  AUDK.LU 
posted a 26% increase in group profit, supported by the sale of
the staff outsourcing company Majorel.
  
        On the other side, Bertelsmann reported flat revenues
year-on-year as the growth in its book publishing, music and
education businesses was offset by a weak TV ad market.
  
        Revenues of the German media company stood at 20.2
billion euros in 2023, down 0.4% from the previous year's figure
and broadly in line with the company's expectations.
  
        Media companies had to deal with fewer ad sales in the
past years, as inflation and higher energy prices led to firms
cutting back on ad spending.
  
        U.S. peer Paramount  PARA.O  
    reported
     a quarterly profit above expectations at the end of
February as streaming gains helped overshadow the weak
advertising market.
  
        
  

 (Reporting by Chiara Holzhaeuser and Paolo Laudani
Editing by Miranda Murray)
 ((Chiara.Holzhaeuser@thomsonreuters.com;
Paolo.Laudani@thomsonreuters.com))