Bertelsmann Profit Down 8% On High Paper Prices

Mark Wossner, chief executive, said high paper prices and poor economic conditions in the group's European markets were the main cause of the fall in operating profit, the first in more than 10 years.

Increases in paper prices alone added DM200 million to group costs. Sales rose five per cent from DM20.5 billion to DM21.5 billion.

BMG Entertainment, the television, film and music division, generated sales of DM8.6 billion.

The company's book division, which includes publishing and book club activities, had sales of DM6.9 billion. Siegfried Luther, chief financial officer, said the newspaper and magazine subsidiary, and the book division accounted for more than 60 per cent of profits.

 

Entertainment accounted for 20 per cent while printing activities contributed around 15 per cent. Wvssner said that while Germany remained sluggish, international markets