Coiled Springer

6 March 2013 By Olaf Storbeck

The German media group spooked shareholders with news that the restructuring of its print unit and further digital investments will eat into 2013 profit. The fears look overdone. Springer is coping with the digital transition much better than most of its peers.

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German publisher Axel Springer announced sales of 3.3 billion euros for 2012, an increase of 3.9 percent compared to the previous year. A drop of 3.5 percent in circulating revenue was more than offset by 9.4 percent growth in advertisement revenue. Earnings before interest, taxes and depreciation increased 5.8 percent to 628 million euros, beating expectations. Analysts polled by Reuters expected an EBITDA of 619 million euros.
The company gave a cautious outlook on 2013. With regards to revenue, it anticipates a low single-digit percentage increase. Profitability, however, is expected to decline. The management anticipates a single-digit percentage decrease in the group’s EBITDA, driven by investment into the digital business and restructuring costs in the print business.

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