German media conglomerate Bertelsmann revised its outlook for 2026 on Tuesday, projecting revenue of approximately 21 billion euros ($22.8 billion) and operating EBITDA of around 3.4 billion euros by that period.
This marks a shift from its previous target of increasing revenues to 24 billion euros and earnings before interest, taxes, depreciation, and amortization (EBITDA) to 4 billion euros by 2026, as announced a year ago.
CEO Thomas Rabe explained the updated forecast in a press release, citing the sale of staff outsourcing company Majorel and the planned divestitures of RTL Nederland and regional newspaper publisher DDV Mediengruppe as contributing factors.
Regarding the current year, Rabe expressed optimism during an interview, noting a promising start in the first quarter and a favorable economic environment marked by decreasing inflation and rising purchasing power in Germany.
During a conference call, Rabe emphasized Bertelsmann’s strategy, which prioritizes small and medium acquisitions to bolster existing businesses rather than pursuing large-scale M&A ventures worth billions of euros.
Despite flat revenues year-on-year, Bertelsmann experienced growth in its book publishing, music, and education sectors, offset by challenges in the weak TV advertising market.
Media firms have grappled with reduced ad sales in recent years, attributed to factors such as inflation and higher energy prices prompting companies to scale back on advertising expenditures.
In contrast, U.S. counterpart Paramount (PARA.O) reported better-than-expected quarterly profits in late February, buoyed by streaming gains that overshadowed the subdued advertising market.
