Quantcast
return Home

Axel Springer continues growth in first half-year

During the first six months of the current financial year, Axel Springer's digital activities contributed a total of 67 per cent to total revenues, 72 per cent to consolidated EBITDA and 85 per cent to advertising revenues. Adjusted for consolidation and currency effects, the organic growth in revenues from digital media amounted to 11.0 per cent, according to the company.

Axel Springer logo ()

During the first half-year, earnings before interest, taxes, depreciation, and amortisation (EBITDA), adjusted for non-recurring effects, increased by 2.3 per cent to €272.9m. A sharp increase in classified ad models was once again the major factor driving this growth.

Among other factors, the planned higher investments in digital growth projects impacted upon the other segments. The EBITDA margin improved slightly during the reporting period from 16.9 per cent to 17.2 per cent. For the whole of 2016, the Executive Board – despite the numerous macroeconomic and political risks – adheres to the forecasts for EBITDA and earnings per share. It slightly adjusts the outlook for group revenue, however, and now expects a stable development instead of the slight growth that was originally forecast. Organically, group revenue grows in the mid-single-digit per cent range.

Dr Mathias Döpfner, chief executive officer of Axel Springer said: “We have further improved our market position by means of targeted acquisitions, such as, most recently, eMarketer in the strategic growth market of the USA as well as in the area of Classified Ad Models. We are confident that our investments in digital growth will increasingly pay off.”

Targeted investments in digital growth

During the first half-year, the group invested  in the further development of the digital growth projects Business Insider and Upday as well as in the expansion of the US activities of the Bonial Group. At the same time, Axel Springer expanded the digital business with targeted acquisitions. In the strategic growth market of the USA, the group acquired about 93 per cent of the shares in eMarketer. Axel Springer has thus expanded its portfolio of innovative paid models and strengthened its position with respect to business coverage and information. The transaction was completed in July 2016.

Source: Axel Springer

Axel Springer is a FIPP member.

More like this

Axel Springer’s Bild is testing news delivery via Facebook Messenger

Axel Springer’s head of data innovation on FB Instant Articles, ad-blocking and more

From reach to monetisation: Axel Springer on its global investment strategy

  • What to expect as Hearst Magazines' new Airbnbmag hits the streets Chief content officer Joanna Coles discusses the premiere edition of Airbnbmag, its celebration of global community and the future of travel. 22nd May 2017 MagWorld
  • Eight lessons from Cosmopolitan on publishing to Snapchat Discover One of the lessons for Cosmopolitan following the brand’s wildly successful launch on Snapchat Discover just short of 2.5 years ago was that “you have to dig beyond analytics to find out what [users] are saying about your editions and what they really care about”. 22nd May 2017 MagWorld
  • Inside The Business of Fashion In the space of only a decade, The Business of Fashion has grown from a blog to multi-channel business servicing a global professional community in the millions through a website, newsletters, social media, print magazine and membership programme, with clear, diversified revenue model and each stream contributing meaningfully to the overall top line. 23rd May 2017 MagWorld
  • The Immediate Media Co story: from starting up to being acquired by Burda Earlier this month at the PPA Festival, Barry Mcllheney of the UK Publishers Association sat down with Immediate Media Co’s CEO, Tom Bureau, who talked about the journey from starting Immediate to being acquired by German-based publisher, Hubert Burda.  24th May 2017 MagWorld
  • Transitioning to digital when print still pays the bills For most publishers, transitioning from print to digital is the essential change. But when print magazines remain the most profitable part of your business, it can be important to balance evolution rationally in order not to lose the print cash cow. Here, we talk to Danish company, Bonnier Publications, about walking that very path. 25th May 2017 MagWorld
Go to Full Site