BERTELSMANN AG EXTENDS TALKS WITH WARNER MUSIC
According to the Wall Street Journal, which doesn’t have a comics section for some reason, Warner Music and BMG have extended exclusive talks with Warner Music to form a joint venture in the U.S.
Bertelsmann reported its first-half net profit dropped this year compared to last year, primarily because in 2002 it sold €2.8-billion worth of AOL Europe back to AOL. This year’s net profit is just €142 million ($153.7 million), compared to €1.6 billion a year ago. The company said operating expenses rose from €175 million to €228 million, with revenue falling 11% to €7.88 billion, down from €8.83 billion. Then there was that one-time charge of €53 million ($57 million) for integrating Zomba/Jive and for restructuring in its music division.
But have no fear, the Germans are looking forward to a strong winter campaign, as sales in the second half of the year in its music and book-publishing units are timed to coincide with the traditional gift-giving seasons of Christmas and Hanukkah.
Said CEO Gunter Thielen: "Based on the seasonal nature of many Bertelsmann businesses, we expect higher revenues and a higher operating profit for the second half of the year than during the first half.”
The company also blamed a weakness of the dollar and the global economy in general on its sluggish first-half. The Guetersloh, Germany-based Bertie also owns Random House, European broadcaster RTL Group and an exciting collection of The Avengers on DVD.
