German multinational media conglomerate Bertelsmann can offset losses for RTL Delle and derives 74% of its revenue from markets outside Germany.

Bertelsmann Delivers Solid Performance Amid Challenging Conditions, Reports CEO

Bertelsmann, the global media, services, and education company, has reported its financial results for the first half of 2022. Despite facing challenging conditions, the company has managed to maintain a steady performance, according to CEO Thomas Rabe.

The adjusted operating EBITDA remained stable at 1.25 billion euros, demonstrating the company's resilience in the face of economic headwinds. However, the consolidated result for the first six months of the year saw a decrease to 201 million euros, down from 416 million euros last year. This decline is attributed to revaluations in the participations portfolio, which resulted in negative currency effects of 144 million euros.

Despite the dip in the consolidated result, Bertelsmann's global footprint continues to expand. As of June 30, 2022, Bertelsmann Investments held 316 participations worldwide. The company's CEO, Thomas Rabe, highlighted the significant increase in the share of Bertelsmann's businesses outside Germany, which now stands at 74 percent.

North America has emerged as the largest individual market for Bertelsmann, accounting for around 30 percent of the company's business. This growth is reflective of the company's strategic focus on international expansion.

Rabe spoke optimistically about the potential for growth and efficiency through AI in all Bertelsmann businesses. He cited deals with AI companies like Perplexity as examples of this potential. However, specific details about these investments were not provided.

The company's revenue streams have seen organic growth across its key business segments. The revenues of RTL streaming businesses, the Arvato Group, the Bertelsmann Education Group, and Bertelsmann Investments have all grown organically, but no new information about the exact figures was provided in the current report.

Looking forward, CFO Rolf Hellermann expects a positive business trend for the remainder of the year. Bertelsmann still expects a consolidated result of 1.5 billion euros for the full year 20225, as previously announced.

In addition, Bertelsmann recorded a gain of 1.1 billion euros from the sale of RTL Nederland to DPG Media, but this was only recorded in July and does not affect the first half of the year's results.

Despite the ongoing challenges, Bertelsmann remains committed to its strategic vision and growth plans. The company continues to seek new opportunities for investment and expansion, as evidenced by the 17 new and 14 follow-up investments made by Bertelsmann Investments this year, but specific details about these investments were not available in the current report.

German multinational media conglomerate Bertelsmann can offset losses for RTL Delle and derives 74% of its revenue from markets outside Germany.