Random House Reports Earnings, 200% E-book Sales Growth
Europe's leading magazine publisher increased its revenue in the period under review, while its operating EBIT remained high and virtually stable. Revenues reached €1.3 billion (H1 2010: €1.2 billion) and operating EBIT €125 million (H1 2010: €130 million). This development can be attributed to ongoing efficiency improvements in the publishing and editorial structures as well as a good market performance, which offset increases in the price of paper and in other areas. Advertising and circulation revenues increased slightly. In the advertising business Gruner + Jahr profited from its portfolio in the premium segment in Germany and, once again, was able to improve advertising revenues and gain market share. The digital marketing of G+J EMS and the continued internationalization of the EMS subsidiary Ligatus led to significant revenue growth in this strategic expansion area. In terms of international business, Gruner + Jahr performed particularly well in France, achieving good revenue growth and an increased operating EBIT, which was bolstered by structural measures. The Spanish market continued to be plagued by problems, notably in terms of circulation, while the advertising business of the title families was just below the previous year's level. In Austria revenues were largely stable, while China continued to show significant growth. In the print business, revenues increased slightly at Prinovis and Brown Printing, although operating EBIT declined. As in previous years, the Dresdner Druck- und Verlagshaus continued to perform well.
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