BERTELSMANN SE & CO. KGAA Bertelsmann Annual Results 2023
Investor Conference Call
March 26, 2024
Rolf Hellermann, Member of the Executive Board and CFO of Bertelsmann
Bertelsmann FY 2023 - Highlights and key topics
1 | Performance: Revenue above €20 billion mark | Operating EBITDA adjusted slightly down to €3.1bn | Group profit of €1.3bn |
2 | Financial position: Leverage factor at 1.8, well below limit | Maturity profile long-term oriented | Strong liquidity |
3 | Cash Flow: Cash conversion improved | Higher level of operating free cash flow | Lower increase in net working capital |
4 | Strategy: National media champions | Global content | Global services | Education | Investments |
5 | Boost: Program to accelerate implementation of Group strategy | Boost investments 2021-2023 totaling €3.9bn |
6 | Portfolio transformation: Fast-growing, digital, international, diversified | Improved portfolio quality through organic + acquisitive expansion |
7 | Outlook 2024: Market uncertainties | Robust portfolio | Moderate revenue and earnings increase on a comparable basis |
Group key figures - Revenue once again >€20bn, operating EBITDA adjusted >€3bn,
Group profit above previous year
in € millions
Revenue, in € billions
Operating EBITDA adjusted
Group profit
Reported
Organic
-0.4%
+0.8%
20.2
20.2
3,393 3,192
2022
2023
2022
1) Start-up losses streaming businesses RTL Group (RTL+ DE and HU, Bedrock, Salto and 6play FR in 2022)
Before streaming1)
3,264
3,119
1,326
1,052
2023
2022
2023
Divisions - Revenue growth at PRH, BMG, Bertelsmann Education Group and BI; EBITDA down mainly due to declines at RTL Group and disposal of Majorel shares
in € millions
Revenue growth compared to previous year
Reported Organic
20222023
-5.1% -4.0%
+7.3% +5.6%
+4.6% +5.7%
-1.6% +5.9%
-16.2% -15.9%
+40.9% +5.0%
+8.7% +4.1%
EBITDA-margin
18%
17%
16%
15%
22%
21%
16% | 16% |
1%
2%
31%
32%
9%
5%
1) Previous year adjusted 2) The business development of the venture capital business of Bertelsmann Investments is determined primarily on the basis of EBIT. EBIT of Bertelsmann Investments amounted to €-219 million (previous year: €-51 million).
Group profit - Increase due to high capital gains, higher expenses for restructuring and other adjustments
in € millions
2022 | 2023 | ||
Operating EBITDA adjusted | 3,192 | 3,119 | |
Depreciation and amortization | -1,077 | -1,131 | |
Restructuring/other adjustments | -420 | -549 | |
Impairments/reversals | -46 | -42 | |
Capital gains/losses and FV remeasurements | -96 | 502 | |
Special items | -562 | -88 | |
EBIT | 1,553 | 1,899 | |
Financial result | -258 | -337 | |
Income taxes | -246 | -237 | +10 |
Earnings after taxes from discontinued operations | 3 | - | -3 |
Group profit | 1,052 | 1,326 | +274 |
Change
Comment
-74
Positive performance of service and education businesses, decline of TV businesses und negative exchange rate effects
-54
Further Group key figures - High operating free cash flow, lower increase in net working capital, level of investments below high previous year due to Afya in 2022
Operating free cash flow1), in € millions
Total investments2), in € millions
CCR1)
42%
60%
1,160
876
Share increases in already fully consolidated companies
Purchase price payments for consolidated investments3)Investments in financial assetsCAPEX
2022
2023
1) Adjusted 2) According to cash-flow statement including change in equity 3) Including financial debt assumed
2,168 187
2022: Afya, Lux Vide
1,583 139 368
573
2022
2023
Financial status (I/II) -
Leverage factor well below limit, decrease of operating leases due to Majorel disposal
Leverage factor ≤2.5
2.5
2019
2020
Equity ratio ≥25%
Economic debt Operating EBITDA adjusted1)
2021
2022
2023
Equity Total assets
25%Economic debt (in € millions)Net debt2)Profit participation capital
Operating leases
Pensions
46%
Credit rating
2019
2020
2021
2022
2023
1) After modifications 2) Less 50% par value of hybrid bonds (until FY 2021) and less investment in special fund
6,511
2019
4,713
2,267
413
1,333 700
2020
2021
2022
2023
Financial status (II/II) -
Sound financial position, long-term oriented maturity profile
in € millions
2,954
1,200
LiquiditySyn LoanDecember 31, 2023
Financing activities FY 2023
• Hybrid bond (nominal value of €650 million) called in March 2023, early repayment of outstanding nominal value of €146 million made in April 2023
• In April 2023, debt issuance program was launched with a maximum total volume of €5 billion
Bonds
Promissory notes
Hybrid bonds
2024
2025
2026
2027
2028
1) Indication of first call date, for illustrative purposes only 2) As of 31 Dec 2023 (BRL500)
2029
2030
2032
2075
Strategic framework since 2021 -
Boost program to accelerate implementation of Group strategy
1) ROIC
Strategic progress -
Continuous progress along strategic priorities
1) Advertising-relevant target group 2) Paying subscribers RTL+ DE, RTL+ HU and M6+ (formerly 6play); as of December, 31 2023
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Bertelsmann SE & Co KGaA published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 19:19:06 UTC.
