German media, services, and education company, Bertelsmann, announced on Wednesday that its net profit for the first half of the year has fallen. However, the company remains optimistic about its business performance by 2023.
In comparison to the previous year’s €492 million, Bertelsmann’s net profit this year stood at €260 million ($282.9 million). The decline in profit is attributed to a lower operating result and various restructuring measures. These measures include the realignment of the publishing division at RTL Deutschland, the realignment of the U.S. business at Penguin Random House, and the gravure site closures at Bertelsmann Marketing Services.
Operating earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to €1.27 billion, a decrease from €1.43 billion in the previous year. The decline is mainly due to a fall in RTL Group’s operating result, which can be attributed to weak TV advertising markets and higher investments in streaming.
Earnings before interest and taxes (EBIT) also experienced a decline, dropping from €840 million to €509 million.
On a positive note, revenue increased to €9.70 billion from €9.29 billion during this period.
Looking ahead, Bertelsmann expects a positive overall business performance for the full year. Chief Financial Officer Rolf Hellermann stated, “We are sharpening our outlook for 2023 and, before any effects of the planned sale of our Majorel shares, expect revenues to increase moderately, while the operating profit is still expected to remain stable.”