Bastei Lübbe AG: Full-year year forecast confirmed despite subdued start to the new financial year
DGAP-News: Bastei Lübbe AG / Key word(s): Quarterly / Interim Statement/Quarter Results
Full-year year forecast confirmed despite subdued start to the new financial year
Cologne, 11 August 2022 - general-interest publisher Bastei Lübbe AG (ISIN DE000A1X3YY0) today announced the figures for its 2022/2023 financial year. Following the robust growth in previous years, revenues and earnings are now being impacted by declining consumer confidence and rising costs. In this difficult environment, the Group generated 19.0 million euros in revenues in the period from 1 April to 30 June 2022, which, down by 0.2 million euros, is almost at the level of the previous year (19.2 million euros).Group earnings before interest and taxes (EBIT) were significantly weaker in the first quarter. The decline from 2.0 million euros in the previous year to 0.3 million euros is due in particular to increased costs. In the period under review, higher expenses for production - due to increased printing and paper costs, as well as for personnel - had a direct impact on earnings in the face of stagnating revenues.
“Despite the expected difficult conditions, we were able to maintain the revenues of the previous year’s quarter, so that although we are starting the financial year with a subdued start, we confirm our forecast for the year. Due to the pleasing development of our community models as well as our attractive offering for the second half of the year, we are optimistic about the coming months,” comments Soheil Dastyari, CEO of Bastei Lübbe AG, on the start of the financial year.
Higher printing and paper costs impacting profitability
The cost of materials, at a total of 9.2 million euros in the period under review, was above the level of the previous year (8.4 million euros). This is chiefly due to higher printing and paper costs. Personnel expenditure increased as planned from 4.6 million euros in the previous year to 5.1 million euros.
The result of operating activities in the Group (EBIT) amounted to 0.3 million euros in the period from April to June (previous year: 2.0 million euros). The EBIT margin amounts to 1.7 per cent (previous year: 10.5 per cent). In the period under review, it must be taken into account that extraordinarily high returns from the previous year (approx. 0.6 million euros) impacted the result.
Consolidated net profit for the period stands at 0.1 million euros (previous year: 1.4 million euros). Earnings per share amounted to 0.01 euros (previous year: 0.10 euros). As in the previous year, the number of shares in circulation amounted to 13,200,100.
In the “book” segment, the publishing group achieved 17.2 million euros in revenues (previous year 17.3 million euros). Compared to the previous year, the full consolidation of CE Community Editions GmbH contributed 1.6 million euros in revenues. The restraint in the areas of “fiction”, “non-fiction” and "children’s and young people’s books” was particularly noticeable. In addition, digital revenues in the period under review are 0.8 million euros down on the previous year. It was possible for the revenue share of community-driven business models to be substantially boosted from 20 per cent to 33 per cent year-on-year, especially due to the positive development of LYX and the full consolidation of Community Editions.
This was also recently demonstrated by the LYX pop-up tour through five major cities across Germany, which successfully implemented a completely new event concept for the imprint. In Cologne, Hamburg, Berlin, Würzburg and Munich, the publishing house created its own LYX World for one day each in special locations and exclusive encounters with the successful authors at book-signing sessions and an evening event. Book sales were carried out with retail partners Thalia, Hugendubel and Dussmann. The community’s enthusiasm was enormous, accompanied by countless posts on social networks. LYX was able to inspire more than 2,600 visitors at the five stations, thus demonstrating the power and potential of the community models in an exemplary way.
In the reporting period, the “novel booklets” segment achieved 1.7 million euros in revenues, compared to 1.9 million euros the previous year. Segment EBIT in the current financial year is at -0.1 million euros due to lower sales revenues and higher paper and printing costs (0.3 million euros).
Good balance-sheet structure as basis for future growth
The share in equity attributable to the shareholders of the parent company, at 56.2 million euros, corresponds to the value of 56.1 million euros at the end of the financial year. The equity ratio is thus a satisfactory 54.6 (previous year 47.3) per cent. Net financial assets increased from 14.2 million euros to 14.8 million euros in the first quarter of the financial year. This shows that the Group’s financial position remains very solid.
Forecast for financial year confirmed
The Executive Board of Bastei Lübbe sees its opinion confirmed that the focus on developing popular and progressive content will remain a successful and reliable business model. To this end, community-driven models with innovative solutions as well as the use of digital channels in marketing and distribution are to be expanded.
The Group confirms its forecast from July 2022. Bastei Lübbe remains committed to generating 90 to 95 million euros in revenues for the 2022/2023 financial year. The targeted EBIT margin of between 10 per cent and 11 per cent will also be maintained. As in the previous year, this includes a distribution of 1.0 million euros from Räder GmbH close to that of the previous year (1.2 million euros). The higher-than-expected sales of the new adult label LYX will also contribute to achieving the target. Among other things, new publications by bestselling authors Rebecca Gablé and Andreas Eschbach as well as additional revenues in the audio segment will contribute to the profitable development in the financial year. The balance-sheet ratios – particularly the equity ratio and gearing – are to sustainably remain at a level appropriate in the light of the Company’s risk profile.
Bastei Lübbe AG’s quarterly statement on the first three months of fiscal year 2022/2023 is available on the Internet at www.luebbe.com/de/investor-relations/finanzberichte/quartalsberichte.
|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:||1417907|
|End of News||DGAP News Service|