BERTELSMANN ANNOUNCES 12.3% FALL IN PROFITS OVER 1997/98...

Siegfried Luther, Financial Director of the German communications giant Bertelsmann, announced on September 23 that the group has recorded a 12.3% drop in operating profits before extraordinary elements for 1997/98 to DM1.339 billion. Gruener und Jahr, the group's press subsidiary, publisher of such titles as Geo and Gala, accounted for 45% of profits, the remainder coming from books (20%), music and audiovisuals (20%), printing (15%) and multimedia services (5%). Over 1996/97, operating profits excluding extraordinary elements amounted to DM1.527 billion. Notwithstanding, net profits are up 9.8% on 1996/97 to a record figure of DM1.122 billion, following the sale of an Italian paper works and printers in the United States. Mr Luther indicated that these transfers had long been planned.

Bertelsmann turnover changed little over 1997/98, amounting to DM25.7 billion, including half of the turnover from CLT-Ufa, the audiovisual pole created in 1997. Besides a...