PRH owner Bertelsmann sets four-year €24bn revenue target

Bertelsmann, parent company of Penguin Random House (PRH), has set high long-term targets for its revenues and earnings in the years ahead. 

At a management meeting this week, Thomas Rabe, c.e.o., said he intends to achieve revenues of €24bn (£21.5bn), earnings before interest, taxes, depreciation and amortisation (EBITDA) of €4bn (£3.6bn) and group profits of €2bn (£1.8bn) four years from now. 

In 2021 Bertelsmann, which is awaiting a US court decision on its $2.2bn bid for Simon & Schuster, recorded “the best operating result in its history” with group revenues growing by 11.4% to €18.7bn (£16.7bn), up from €17.3bn (£15.5bn) the previous year. The group’s operating EBITDA increased to a record €3.2bn (£2.9bn) compared with €3.1bn (£2.8bn) in 2020.  

Individual Bertelsmann divisions also presented “Boost” growth plans at the two-day management meeting. Between €5bn (£4.5bn) and €7bn (£6.3bn) are to be invested by 2025 to take Bertelsmann to this higher revenue and earnings level. 

Rabe said: “Our five strategic growth priorities – national media champions, global content, global services, online education, and investments – are having an impact and triggering a growth spurt for Bertelsmann. We expect our revenues to exceed the €20bn mark for the first time in the full year 2022.  

“As part of our Boost growth plans, we will continue to invest heavily in our businesses in the years ahead. The difficult global economic situation notwithstanding, Bertelsmann has stuck to its strategy and invested around €750m in the first half of 2022 alone. The broad diversification of our businesses is a major advantage for all divisions. Bertelsmann is solid like a rock in times of crisis.” 

Rolf Hellermann, Bertelsmann’s chief financial officer, added: “Bertelsmann’s starting position for further growth is excellent: our businesses are resilient and operationally strong, and we have ample financial room for manoeuvre. We have funds of €5bn to €7bn available for investment through 2025, which we will use to further develop Bertelsmann.” 

Besides Rabe and Hellermann, Bertelsmann executive board members Markus Dohle, c.e.o. at PRH, and Immanuel Hermreck, as well as other top executives, presented their Boost growth plans and projects, the company said.