Bastei Lübbe AG: Bastei Lübbe makes impairment losses on the 51 percent financial investment Daedalic Entertainment and plans restructuring
DGAP-News: Bastei Lübbe AG / Key word(s): Change in Forecast
Bastei Lübbe makes impairment losses on the 51 percent financial investment Daedalic Entertainment and plans restructuring
Cologne, 06 February 2020 - The listed company Bastei Lübbe AG has to carry out impairment losses on its investment in Daedalic Entertainment in the amount of EUR 12 - 14 million, of which EUR 5 million is 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 forecast for the year. The Management Board is therefore examining options for restructuring and realigning the business model in the Games segment, the smallest segment 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. Thus, the previous business model is proving to be unsustainable.
"The business model of our 51 percent financial participation is proving to be unsustainable. Together with the minority shareholder, we will therefore now examine all options for a repositioning of Daedalic Entertainment and its business model", Carel Halff, CEO of Bastei Lübbe AG, explains the measures introduced. "In contrast, we are very much at peace with the development of our core business, books, audio books and novels," Halff continues.
No effect on Bastei Lübbe's core operating business and financial position
According to current estimates, the Management Board of Bastei Lübbe AG currently expects a significant decline in Group EBIT for the current financial year 2019/2020 compared to the previous forecast, which is now expected to be 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. The impairment losses on intangible assets required in this respect - both internally generated computer games and the goodwill of Daedalic Entertainment GmbH recognised in the balance sheet - have no effect on the core business with books, audio books and novels or on the liquidity of Bastei Lübbe.
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".
06.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|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:||970243|
|End of News||DGAP News Service|