Group Interim Management Report

In the first half of 2016, Bertelsmann achieved a record operating performance. Progress in all four strategic priorities had a positive effect on business development in the reporting period. Organic revenue growth of 1.3 percent almost fully offset portfolio effects and the impact of exchange rate effects. Group revenues declined by 0.9 percent to €7,966 million (H1 2015: €8,040 million). In contrast, Operating EBITDA improved by 4.5 percent to the record level of €1,111 million (H1 2015: €1,063 million). The EBITDA margin increased to 13.9 percent (H1 2015: 13.2 percent). The primary contributors to the improved earnings were the French and German businesses of RTL Group, the Arvato service businesses, and the printing businesses that were combined at the beginning of the year. This was counteracted by start-up losses for digital and new businesses, which, for Bertelsmann Education Group and RTL Group alone, amounted to €-44 million (H1 2015: €-27 million). Additional costs for the digital transformation were incurred in particular by Gruner + Jahr. As a result of the positive earnings performance, lower special items and disposal gains from Bertelsmann Investments, Group profit increased to €482 million compared to €398 million in the same period last year. For the second half of 2016, Bertelsmann expects a continuation of the positive performance.

Revenues in € billions

Revenues <span>in € billions</span>
  • Group revenues 0.9 percent below the previous year
  • Organic revenue growth of 1.3 percent nearly offsets portfolio and exchange rate effects
  • Revenue growth at RTL Group, Arvato, Bertelsmann Education Group and BMG

Operating EBITDA in € millions

Operating EBITDA <span>in € millions</span>
  • Increase in operating EBITDA of 4.5 percent to record level of €1,111 million
  • EBITDA margin of 13.9 percent, up 0.7 percentage points compared to same period last year
  • Positive development, especially at RTL Group and Arvato

Group Profit in € millions

Group Profit <span>in € millions</span>
  • Increase in Group profit by 21.1 percent to €482 million
  • Improved operating result
  • Lower impact from scale-back of businesses
  • Gains on disposals at Bertelsmann Investments