Bastei Lübbe with further profitable growth in the 2nd quarter of fiscal year 2021/2022

DGAP-News: Bastei Lübbe AG / Key word(s): Half Year Results
11.11.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

Bastei Lübbe with further profitable growth in the 2nd quarter of fiscal year 2021/2022

  • 35.9 percent increase in EBIT to 4.6 million euros
  • Slight increase in revenues to 41.3 million euros
  • Improvement in the EBIT margin to 11.0 percent
  • Bastei Lübbe now the sole shareholder of CE Community Editions GmbH
  • Forecast for fiscal year 2021/2022 confirmed

Cologne, 11 November 2021 - The listed company Bastei Lübbe AG (ISIN DE000A1X3YY0) today published its results for the first half of its fiscal year 2021/2022. The first six months of the fiscal year were generally favourable. In the period from 1 April until 30 September 2021, the Group generated revenues of 41.3 million euros (previous year 41.1 million euros), thus remaining on track towards achieving its full-year revenue target. Group earnings before interest and taxes (EBIT) climbed by 35.9 percent to 4.6 million euros, up from 3.4 million euros in the same period of the previous year. The EBIT margin for the first half of the year came to 11.0 percent (previous year 8.2 percent), thus matching the full-year target.

Solid balance sheet structures allow full cashflow-funded takeover of CE Community Editions GmbH

In July, Bastei Lübbe announced the acquisition of the remaining 60 percent of the shares in CE Community Editions GmbH, which has developed an extremely innovative publishing model in recent years. CE Community Editions GmbH specialises in publishing books by social media artists who, as influencers, attract a large number of enthusiastic followers. As a result of the acquisition, the company was fully consolidated for the first time from 1 August 2021. This resulted in material changes to the balance sheet structure, which are reflected in the additional goodwill of 4.6 million euros among other things.

Revenues in the "Book" segment increased slightly in the first half of the fiscal year, rising to 37.7 million euros (previous year: 37.5 million euros). This was due to the first-time consolidation of the Group companies Business Hub Berlin UG and CE Community Editions GmbH. Segment EBIT improved from 2.6 million euros in the previous year to 4.0 million euros in the period under review. The increase in EBIT was primarily underpinned by an improvement in revenue-tied costs.

Digital revenues stabilised at a high level but reveal differing trends in e-book and audio business. Whereas audio revenues continued to rise over the previous year, e-book business fell short of the previous year in the first half of 2021. Here, revenues are returning to their pre-pandemic levels after the strong demand emerging during the coronavirus lockdown in the same period of the previous year.

The "Novel Booklets" segment posted revenues of 3.6 million euros in the first half of fiscal year 2021/2022 and was thus unchanged over the previous year (3.6 million euros) Segment EBIT stood at 0.6 million euros in the period under review, down from 0.7 million euros in the previous year.

Compared with 31 March 2021, total Group assets increased by 3.2 million euros, rising from 90.1 million euros to 93.4 million euros. Following the dividend payment, the equity ratio now stands at 45.9 percent (31 March 2021: 47.3 percent).

"These figures confirm our strategy and our focus on inspiring content. We have succeeded in additionally increasing our profitability in the first half of the year. With its imprints and steadily growing business portfolio, Bastei Lübbe has been able to strengthen its position and continue on its trajectory towards higher revenues and earnings," says Joachim Herbst, Speaker of the Executive Board and Chief Financial Officer. "By acquiring publishing models with a strong community connection, we are additionally expanding our range of target group-specific products. CE Community Editions Verlag is characterised by a very close bond between its authors and the readers, thus offering another promising version of a community model in publishing business."

Outlook confirmed - further dividend payment planned

Net financial assets stood at 4.8 million euros as of 30 September 2021, down 4.9 million euros on 31 March 2021 (9.7 million euros). This is mainly due to the dividend payment of 3.8 million euros in September 2021 as well as the acquisition of the remaining 60-percent interest in CE Community Editions GmbH.

"We remain upbeat for the year as a whole. The encouraging response to our stand at the Frankfurt Book Fair on the part of booksellers and the general public and the latest releases by our top authors Ken Follett, Dirk Rossmann and Jeff Kinney augur well for our Christmas business", adds Joachim Herbst. "However, as a publisher, we also face challenges posed by supply chain constraints, including a tight paper and printing market, although this should not have any significant impact on our earnings in the current year."

On the strength of its latest business figures, Bastei Lübbe confirms its full-year revenue and EBIT guidance for fiscal year 2021/2022. Accordingly, subject to the necessary board decisions, shareholders can expect to participate in the Group's business success through an attractive dividend, positioning Bastei Lübbe as an attractive value share. However, these assumptions remain subject to the proviso that the current pandemic situation does not necessitate the imposition of any new restrictions affecting retail outlets.

About Bastei Lübbe AG:

Bastei Lübbe AG is a German general-interest publisher based in Cologne, specialising in the publication of books, audio books and e-books featuring fiction and popular science content. The company's core business also includes the periodically published novel booklets. With a total of sixteen imprints, the group currently offers several thousand titles in the fields of fiction, non-fiction and children's and young people's books. In the growing hardcover/paperback fiction segment, the company has been one of the market leaders in Germany for many years. At the same time, Bastei Lübbe is a driver of innovation in digital media and exploitation channels through the production of numerous audio and e-books among other things.

The Bastei Lübbe Group reported revenues of around 93 million euros in fiscal year 2020/2021. Bastei Lübbe AG is one of the largest medium-sized companies in the German publishing industry. Its shares have been listed in the Prime Standard of the Frankfurt Stock Exchange (WKN A1X3YY, ISIN DE000A1X3YY0) since 2013. Further information can be found at www.luebbe.de.

Contact Bastei Lübbe AG:
Barbara Fischer
Head of Press and Public Relations
Phone: +49 (0)221 8200 2850

11.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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