PRH sees double-digit growth in first quarter

Penguin Random House saw double-digit growth in the first quarter of 2021, parent company Bertelsmann has reported.

Bertelsmann itself reported a 10% organic revenue rise year on year, with group revenues of more than ‚Ǩ4.2bn (£3.6bn) in the first quarter of 2021, up from ‚Ǩ4.1bn (£3.5bn). The company said organic revenues were up 7% from its pre-Covid level in 2019, while the operating margin also improved.

The company picked out "particularly strong performances" from PRH, alongside services division Arvato, although exact figures were not broken out.

The report noted: “Penguin Random House was represented with three authors on the 'Time 100 Next' list published by Time magazine: the novelist Brit Bennett; the poet Amanda Gorman, who rose to instant worldwide fame at the inauguration of US President Joe Biden; and the environmental activist Ayana Elizabeth Johnson. Its numerous bestsellers included the publication of Michelle Obama’s global bestseller Becoming in a new edition for young adults in all its markets, as well as the number-one-bestselling How to Avoid a Climate Disaster by Bill Gates.”

Bertelsmann chairman and c.e.o. Thomas Rabe said: “The first three months went very well for us fiscally. Bertelsmann increased its revenues significantly, and is now clearly above the level of the period before the outbreak of the coronavirus pandemic. Almost all divisions reported organic growth, in some cases, strong. At the same time, we made progress in implementing our corporate strategy. Further progress was made establishing national media champions, and our global content and services businesses are also well on track. We will achieve our targets for the full year.”

Chief financial officer Rolf Hellermann warned of “uncertainties” this year due to Covid-19's impact on the economy. However, he added: “As the first quarter of 2021 shows, our group’s broad setup continues to contribute to a positive business performance. Against this backdrop, we continue to expect revenue growth, high operating profitability, and net income once again in excess of ‚Ǩ1bn for the full year.”