Booming digital media lifts Axel Springer profits

German media giant Axel Springer, owner of the top-selling Bild tabloid, on Wednesday confirmed its full-year target as its thriving digital media business once again powered earnings in the third quarter.

Adjusted net profit grew by nearly a fifth to 75 million euros ($87 million) between July and September, with the group highlighting the strong performance of its classified ads unit and the success of English-language site, Business Insider.

Third-quarter operating or underlying profit increased by seven percent to 156 million euros compared with the same period last year, on the back of sales up more than seven percent to 860 million euros -- beating analysts' expectations.

"Once again we have grown in all operating segments," said chief executive Mathias Doepfner.

"The continued success of Business Insider and the extraordinarily good development in the advertising market -– particularly with Bild –- played a defining role here."

Axel Springer's stable of online titles includes the digital versions of German newspapers like Bild or Die Welt, while it also operates a slew of European classified advertising sites.

Digital media accounted for around 77 percent of the group's operating profit in the third quarter, Springer said.

The group reaffirmed its targets for the full year, which it last upgraded in August.

Springer said it continued to expect a "high single-digit percentage" increase in operating profit and adjusted profit per share compared with 2016, on the back of a "mid single-digit percentage" increase in revenues.

Founded shortly after World War II by journalist Axel Springer, the publishing group was an early convert to digital media, setting up online subscriptions for its newspapers, selling off print publications and investing in up-and-coming sites like Business Insider.

Source:AFP