European media group Bertelsmann yesterday announced full year results for the period to June 2001 and continues to prepare for its IPO, expected in 2002/2003.
Sales were reported to be up 21% to E20 billion and net income was up 35% to E1.5 billion. Operating margins for the group have fallen from 7.5% to 6%, increases at TV group RTL and publisher Random House being offset by losses at Bertelsmann Music Group (BMG).
Investment in the internet rose from E261 million to E888 million, largely funded by gains from the sale of AOL Europe.
Bertelsmann chief executive Thomas Middelhoff said: “Over the past three years, Bertelsmann has nearly doubled its revenues and more than tripled its profits. During this time, we have undergone more changes than ever before: we have become a content powerhouse. In 1985, content ventures contributed 30 percent to total turnover – today, they make up more than 60 percent. In the past three and a half years alone, Bertelsmann has invested some three billion Euros into its content businesses.
Add to this our acquisition of the majority stake in RTL Group, which was agreed upon in February, and the integration of Pearson TV (now FremantleMedia) prior to that. Whether you consider print media, music or moving pictures: Bertelsmann offers the entire range from a single source. Our future vision is of an integrated media company that generates appealing content and fosters talent on the one hand and sustains an in-depth, trusting relationship with its customers, club members and subscribers on the other.”
