Random House Reports Earnings, 200% E-book Sales Growth
The internationally networked outsourcing services provider Arvato increased its revenues during the first half of the year; meanwhile, operating EBIT was below the previous year's level, partly due to increases in the price of energy and raw materials as well as start-up costs. Revenues reached €2.4 billion (H1 2010: €2.3 billion), operating EBIT was €66 million (H1 2010: €99 million). The reorganization of Arvato into strategic business units that was initiated at the start of the year has now been successfully completed. These individual business units now target specifically defined markets and, thanks to this reorganization, some major customer contracts have been won. As a result of Arvato's strategy of offering integrated service chains in all segments, the production-oriented divisions are increasingly becoming service businesses. During the period under review the growth drivers were again the businesses in France and the business units Arvato Infoscore and Arvato Systems. However, the development of Arvato's business activities in Southern Europe and the U.S. was difficult. Revenues generated from customers in the entertainment sector declined in the U.S. in particular, but also in Europe. The direct marketing activities bundled at Inmediaone also experienced difficulty. Arvato expanded its investment activities year on year and increased the number of employees.
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- The New York Times