Group Management Report

Financial Year 2013 in Review

Bertelsmann achieved positive performance in financial year 2013. In implementing the strategy, significant progress was made in all four strategic priorities: strengthening the core businesses, driving forward the digital transformation, developing growth platforms and expanding in growth regions. Group revenues from continuing operations rose 1.8 percent to €16.4 billion (previous year: €16.1 billion). This was largely attributable to portfolio effects, in particular, the merger of Penguin and Random House and the acquisitions of BMG and Gothia Financial Group. Operating EBITDA increased to €2,313 million (previous year: €2,210 million). Despite investments in digitization projects and start-up losses for new businesses, operating EBIT of €1,754 million was slightly above the previous year’s high level (previous year: €1,732 million). Growth in the German television business was offset by the negative impact on earnings also from structurally declining businesses. Return on sales was 10.7 percent (previous year: 10.8 percent). Group profit increased significantly to €870 million from €612 million in the previous year. Total investments including acquired financial debt in the reporting period increased to €2.0 billion (previous year: €0.7 billion). The net financial debt at year-end fell by half to €636 million (previous year: €1,218 million) thanks to proceeds from the placement of RTL Group shares and a high level of operating cash flow. The progress in the implementation of the strategy will have a positive impact on the ongoing business performance. Bertelsmann expects the positive business development to continue in financial year 2014.

 

Revenues in € billions1)

Revenues <span>in € billions<sup>1)</sup></span>
  • Group revenues up 1.8 percent
  • Contributions to revenues through strategic portfolio expansions (Penguin Random House, BMG, Gothia)
  • Development was characterized by normalization of Random House revenues and accelerated scaling back of structurally declining businesses

Operating EBIT in € millions1)

Operating EBIT <span>in € millions<sup>1)</sup></span>
  • Operating EBIT slightly above previous year’s high level
  • Positive development at RTL Group and Arvato despite start-up losses for new businesses
  • Declining earnings in structurally declining businesses

Group Profit in € millions

Group Profit <span>in € millions</span>

1) Figures for financial year 2011 as reported in Annual Report 2011.