Bastei Lübbe AG publishes half-year report 2016/2017: further progress in successful transformation into a digital media company

Bastei Lübbe AG publishes half-year report 2016/2017: further progress in successful transformation into a digital media company

- Consolidated revenue climbs to EUR 68.0 million (previous year: EUR 47.5 million)

- Group EBITDA improves to EUR 4.1 million (previous year: EUR 1.2 million)

- Outlook 2016/2017: significant consolidated revenue and earnings growth

Cologne, 28 November 2016. Bastei Lübbe AG (ISIN DE000A1X3YY0), which is listed in the Prime Standard of the Frankfurt Stock Exchange, is publishing its half-year report 2016/2017 for the period from 1 April to 30 September 2016 today.

CEO Thomas Schierack sees the development over the past half-year period as further progress in the company's successful transformation into an international, digital multi-channel media company: "In addition to the first-time consolidation of BuchPartner GmbH, the increase in consolidated revenue of around 43% in the first half of 2016/2017 also results from a positive development in all segments of the Group. In particular, the significant increase in revenue and earnings in the 'Digital' segment, with year-on-year growth of 11.9%, confirms the success of our strategy."

Revenue performance
In the first half of 2016/2017, Bastei Lübbe generated consolidated revenue of EUR 68.0 million after EUR 47.5 million in the same period of the previous year. At segment level, revenue developed as follows: "Book": EUR 20.8 million (previous year: EUR 20.8 million), "Digital": EUR 15.1 million (previous year: EUR 13.5 million), "Non-Book": EUR 9.3 million (previous year: EUR 8.3 million), "Novel Booklets and Puzzle Magazines": EUR 5.0 million (previous year: EUR 4.8 million) and "Retail": EUR 19.2 million (not yet consolidated in previous year). Across all segments, revenue of EUR 1.4 million was consolidated with BuchPartner GmbH (Retail segment), which was not yet consolidated in the previous year.

Earnings performance
The Bastei Lübbe Group generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 4.1 million in the reporting period after EUR 1.2 million in the same period of the previous year. The "Book" segment contributed EUR 1.5 million (previous year: EUR 0.5 million), the "Digital" segment EUR 0.7 million (previous year: EUR -0.6 million), the "Non-Book" segment EUR 1.5 million (previous year: EUR 0.4 million), "Novel Booklets and Puzzle Magazines" EUR 1 million (previous year: EUR 0.9 million) and "Retail" EUR -0.4 million (not consolidated in previous year). Among other factors, the negative EBITDA in the "Retail" segment results from the partial depletion of the inventories written up in the context of the purchase price allocation. Group earnings improved to EUR 0.7 million in the first half of 2016/2017 after EUR -1.7 million in the previous year.

Asset and financial development
As at 30 September 2016, the total assets of Bastei Lübbe AG were up EUR 47.7 million at EUR 159.5 million compared to EUR 111.8 million as at 31 March 2016. This increase is particularly attributable to the rise in current liabilities and trade payables due to the consolidation of BuchPartner GmbH. This is countered by an increase in current assets - mainly from the first-time consolidation of BuchPartner GmbH - from EUR 45.1 million as at 31 March 2016 to EUR 73.3 million as at 30 September 2016. Equity attributable to the shareholders of the parent group increased to EUR 48.1 million as at 30 September 2016 after EUR 46.6 million as at 31 March 2016.

Cash and cash equivalents also developed positively despite extensive working capital requirements, which were particularly due to continued high investments, chiefly in intangible assets and increased advance payments for authors' fees. As at 30 September 2016, the Bastei Lübbe Group had cash and cash equivalents of EUR 2.4 million after EUR 0.6 million as at 31 March 2015. Bastei Lübbe repaid the 2011/2016 corporate bond issued in the amount of EUR 30 million, including interest, on schedule as at 26 October 2016. Liquidity for the next six years is ensured by a syndicated loan facility of up to EUR 53.0 million. With the anticipated strong Christmas business, cash and cash equivalents will increase further by the end of the current financial year.

Outlook: good start to Christmas business
In its Christmas business, which has already posted an encouraging start, Bastei Lübbe is well equipped for a positive revenue and earnings development in the traditionally strong third quarter with various bestsellers. The "Non-Book" segment, which comprises gifts and decorative items and is also dominated by the revenue development in the pre-Christmas period, is performing considerably better than planned. For the 2016/2017 financial year, the Management Board is expecting a significant increase in consolidated revenue of around EUR 150 million (previous year: EUR 104.9 million). EBITDA is likewise expected to be considerably higher than the previous year's figure of EUR 6.7 million at between EUR 13 million and EUR 15 million. Overall, the Management Board anticipates a continued positive development in the following financial years.

The full half-year report 2016/2017 is available online at https://www.luebbe.com/de/investor-relations/finanzberichte.

About Bastei Lübbe AG:
Bastei Lübbe AG is an international media group based in Cologne. Its business operations focus on developing and licensing content distributed worldwide physically and digitally. The company's core business includes the traditional publishing business and the periodical puzzle magazines and novel booklets in the "Book" segment. With its twelve publishers and imprints, the group of companies currently offers approximately 3,600 titles in fiction, non-fiction and books for children and young adults. In the growing segment of hardcover fiction, the company has been the market leader in Germany for many years. At the same time, Bastei Lübbe is driving innovation in the field of digital media. As well as the production of thousands of audio and e-books, the "Digital" segment also includes holdings in the self-publishing platform "BookRix" and the renowned games publisher "Daedalic Entertainment". Bastei Lübbe AG's value chain is completed by the investment in the online shop "beam-ebooks.de" and the new and internationally unique streaming platform "oolipo".
With currently 413 employees and an annual turnover of roughly EUR 104.9 million (financial year 2015/2016), Bastei Lübbe AG is the largest medium-sized family company in the German publishing industry. Since 2013, the company's shares have been listed in the Prime Standard of the Frankfurt Stock Exchange (WKN A1X3YY, ISIN DE000A1X3YY0). Further information is available at www.luebbe.de.

Contact Bastei Lübbe AG:
Barbara Fischer
Director / Vice President
Public Relations
Tel.: +49 (0) 221 / 82 00 28 50
E-mail: barbara.fischer@luebbe.de