Facts and Figures

Organic growth of +7.5 % was better than the industry average and proof of the group’s impressive performance. Nevertheless, the Verlagsgruppe was not unaffected by the starkly negative turn taken by the economy in the 4th quarter of 2008. Results in 2008 were down compared to prior year. However, the Verlagsgruppe Georg von Holtzbrinck reacted to this situation by determining what measures necessary to secure the group result and implementing them quickly. These efforts helped ensure that group companies’ long-term value and the quality of their products would not be compromised.

In the 2008 fiscal year, the Verlagsgruppe achieved revenue growth resulting in total sales of € 2,588.9 million. The Verlagsgruppe's organic revenue growth of +7.5 % exceeded the total growth of +4.0 % that was impacted by portfolio changes and negative exchange rate effects. The operating profit before interest, taxes and depreciation (so-called "operating EbITDA") sank by -25.5 % to a total of € 165.4 million. The drop in result stemmed mainly from the precipitous economic decline: along with a decrease in sales in the individual business segments, the economic slump also brought about increased expenses for valuation adjustments, which had negative impact on the result. To aid future successes, development and start-up costs for new products and business models also increased during the 2008 fiscal year.

The Verlagsgruppe result before taxes of € 69.2 million was negatively impacted by one-time costs for reorganisations and measures implemented to secure the result. On the positive side, gains on some strategic sales also had an effect on the 2008 result. The biggest transactions included the sale of the Economia group in the Czech Republic and Slovakia as well as the sale of the investment in the Deutscher Verkehrs Verlag and the Verlagsgruppe Handelsblatt.

In the Fiction and Nonfiction segment, the German Trade publishers increased their revenue by +10.0 % over prior year. The International Trade houses all experienced markets that underwent considerable declines during the second half of the year and, with negative exchange rate effects also playing a role, lost -10.5 % worth of revenue vs. prior year.
The Education and Science segment, which largely consists of international activities, was generally unaffected by the financial and economic crisis in 2008. Adjusting for exchange rate and portfolio effects, organic growth came to +12.7 % (unadjusted: +1.7 %), thereby making this segment one of the largest growth drivers for the Verlagsgruppe. Macmillan Education, the US College Group and the worldwide science publisher Nature Publishing Group all played major roles in this development.

The Newspapers and Magazines segment achieved revenue growth of +2.4 %. The Verlagsgruppe Handelsblatt came under considerable pressure in the weak German ad market, as did the Tagesspiegel. Both companies’ main objects saw drops in revenue. DIE ZEIT however turned in very strong performance in 2008, reporting increased circulation and a stable ad business. The Regional Newspaper publishers also had a good year with revenue growth totaling +4.0 %. The regional ad business was largely stable in 2008. The reacquisition of the regional mail businesses had a positive impact on the 2008 earnings situation, though the sale of Eastern European activities brought about a negative effect.

With growth of +41.8 % (+36.6 % of which was organic), the Digital Media segment was also a major growth driver for the Verlagsgruppe. For the 2008 fiscal year, this division contributed 9.7 % or € 251.4 million to the Verlagsgruppe’s total consolidated sales. Companies playing the biggest role in the organic growth were the e-Commerce platforms bol.com and buecher.de, Parship GmbH, studiVZ Ltd. and myphotobook GmbH. The first full-year consolidation of Abacho AG and its subsidiary MY-Hammer AG helped boost revenue over and above the already impressive organic growth rate.

As of the end of May 2009, the Verlagsgruppe Georg von Holtzbrinck sold majority shares in the Verlagsgruppe Handelsblatt (particularly the main object "Handelsblatt" and "WirtschaftsWoche", the Verlagsgruppe Handelsblatt professional publisher as well as iq media marketing GmbH), and the Tagesspiegel Group as well as a 49 % share in DIE ZEIT Group to Mr. Georg Dieter von Holtzbrinck’s company DvH Media GmbH. The Verlagsgruppe also sold its shares in the Dutch e-Commerce provider bol.com b.v. to the Dutch company Cyrte Investments B.V. in June 2009.