Media group Bertelsmann says 2009 net income slumped 87 percent to $47 million

Bertelsmann 2009 net income down 87 pct

FRANKFURT — Media group Bertelsmann AG said Tuesday that its full-year 2009 net income fell 87 percent as a result of a slump in demand during the economic downturn, although business began to turn around at the end of last year.

Bertelsmann earned euro35 million ($47 million) last year, down from euro270 million in 2008. The company’s assets include book publisher Random House and Gruner + Jahr, one of Europe’s largest magazine publishers.

Revenue fell nearly 5 percent to euro15.4 billion from euro16.2 billion the previous year.

Privately owned Bertelsmann, which is based in Guetersloh, did not release fourth-quarter figures.

It said revenue should remain stable in 2010 while profit should rise — although it pointed to “lingering uncertainties” over the current financial year.

The company said it saw weak advertising revenue and low consumer spending last year. It said, however, that its business and advertising demand showed signs of a turnaround toward the end of 2009.

Chief executive Hartmut Ostrowski signaled that the upturn calls for a strategic shift.

“Where the main priority in 2009 was cost and cash management, we will concentrate this year on steering a course for growth,” he said. “The emphasis here will be on continuing to develop the wide range of digital activities in all divisions and to gain market share.”

Bertelsmann’s RTL radio and television business saw 2009 revenue decline 7 percent to euro5.4 billion.

Arvato, a media services division, saw revenue decline 4 percent to euro4.8 billion. The division provides services like printing, logistics and financial services to media companies.

Revenue at Gruner + Jahr, whose titles include Stern magazine and the Financial Times Deutschland newspaper, declined 11 percent to euro2.5 billion.

Those three divisions saw their operating profit decline for the year.

However, Random House saw a slight increase in 2009 revenue to euro1.7 billion, while its operating profit remained stable.

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