Bastei Lübbe AG: Bastei Lübbe makes impairment losses on its 51 percent financial investment Daedalic Entertainment - reduction of group forecast
Bastei Lübbe AG / Key word(s): Change in Forecast
Bastei Lübbe makes impairment losses on its 51 percent financial investment Daedalic Entertainment - reduction of group forecast
Cologne, 06.02.2020. In its consolidated financial statements, the listed Bastei Lübbe AG (WKN A1X3YY, ISIN DE000A1X3YY0) makes non-cash impairments on its investment Daedalic Entertainment GmbH in the amount of 12 ─ 14 million euros, of which 5 million euros are attributable to goodwill. Bastei Lübbe's share in the subsidiary amounts to 51 percent. Due to the weak business development in the Games segment, the Group is reducing its expectations for the full year. The Management Board is now examining options for restructuring and realigning the business model in the Games segment, the smallest area of the Group. The background to these measures is the business development in the third quarter of the 2019/2020 financial year and high investments in a new proprietary development of Daedalic Entertainment, which was not accepted by the market.
The necessary impairment of intangible assets - both self-produced computer games and the goodwill of Daedalic Entertainment GmbH - has no effect on the core business with books, audio books and novels or on the liquidity of Bastei Lübbe.
According to current estimates, the Management Board of Bastei Lübbe AG is therefore currently expecting a significantly lower consolidated EBIT for the current financial year 2019/2020 of between EUR -10.5 million and EUR -6.7 million (previously: EUR 3.5 - 5.3 million).
The aforementioned reduced forecast for Bastei Lübbe AG's consolidated EBIT for the current 2019/2020 financial year will continue to be reviewed by the Management Board on an ongoing basis, in particular also taking into account the examination of options for restructuring and realignment of the business model in the Games segment, and will be adjusted and published again if necessary.
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About Bastei Lübbe AG:
Bastei Lübbe AG is a German publishing house with headquarters in Cologne specialised in the publication of books, audio books and e-books with fiction and popular science content. The company's core business also includes the periodically published puzzle magazines and novel magazines. With its total of twelve publishing houses and imprints, the Bastei Lübbe group of companies currently offers around 3,600 titles in the areas of fiction, non-fiction as well as books for children and young adults. In the growing segment of hardcover fiction books, the company has been one of the market leaders in Germany for many years. At the same time, Bastei Lübbe is an engine for innovation in the area of digital media and distribution channels, among other things by the production of thousands of audio and eBooks. This includes the stake in the game publisher 'Daedalic Entertainment'.
With annual sales of approx. EUR 95 million (financial year 2018/2019), Bastei Lübbe AG is one of the largest medium-sized publishing companies in Germany. The shares of the company have been listed in the Prime Standard segment on the Frankfurt stock exchange (GSIN A1X3YY, ISIN DE000A1X3YY0) since 2013. Further information is available at www.luebbe.com.
|Company:||Bastei Lübbe AG|
|Schanzenstraße 6 - 20|
|Phone:||02 21 / 82 00 - 0|
|Fax:||02 21 / 82 00 - 1900|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||970235|
|End of Announcement||DGAP News Service|