Bastei Lübbe AG: Revenue and results develop as expected in the first quarter 2018/2019

Press release

Bastei Lübbe AG: Revenue and results develop as expected in the first quarter 2018/2019

- 2017/2018 annual financial statements published

- Efficiency programme proceeding as planned

- Outlook for 2018/2019 as a whole: Consolidated revenue of EUR 95 million and positive EBIT expected

Cologne, 9 August 2018 - Bastei Lübbe AG (ISIN DE000A1X3YY0), which is listed in the Prime Standard of the Frankfurt Stock Exchange, has published its audited annual financial statements for the 2017/2018 financial year and is now announcing its business performance for the first quarter of 2018/2019.

2017/2018 annual financial statements published
In the 2017/2018 financial year, Bastei Lübbe generated consolidated revenue of EUR 140.2 million after EUR 146.3 million in the previous year. This year-on-year comparison includes the sale of the giftware company Räder in the previous year at EUR 15.1 million. Adjusted for this sale, consolidated revenue increased by around EUR 9 million compared to the previous year. Positive impulses resulted primarily from the "Book" core business and from the subsidiary Daedalic Entertainment ("Digital" segment). The "Book" segment, which since the start of the 2017/2018 financial year has also included revenue from e-book and audio productions, generated revenue of EUR 84.7 million, up 21.7% on the 2016/2017 financial year. "Once again, it appears that the revenue contributions made by novels from our hit authors, chief among them the sure-fire global bestsellers Dan Brown and Ken Follett, are well above average. The two blockbusters ranked first and second on the German book market in terms of sales in 2017," says Carel Halff, CEO of Bastei Lübbe AG, on the positive development in the "Book" segment.

Consolidated earnings before interest and taxes (EBIT) fell significantly short of expectations in the year under review at EUR -18.0 million (previous year: EUR -0.3 million). This was due primarily to one-time effects of EUR 18.1 million. These resulted from unscheduled write-downs of affiliated companies (EUR 8.3 million), the reassessment of amortisation patterns of capitalised royalties (EUR 8.2 million) and the loss of the sold majority interest in BuchPartner GmbH (EUR 1.6 million). Considering income taxes, the Bastei Lübbe Group generated net profit for the period of EUR -16.2 million after EUR -2.9 million in the previous year. Bastei Lübbe AG shareholders accounted for EUR -12.7 million after EUR -2.1 million in the previous year. Accordingly, earnings per share amounted to EUR -0.96 in 2017/2018 as against EUR -0.16 in the 2016/2017 financial year.

Positive outlook for the year as a whole - forecast confirmed
The current 2018/2019 financial year is a year of transition for Bastei Lübbe AG, in which activities are being focused on the development of the core business and sustainable profitability. Good entertainment for a wide audience from global authors and the addressing of new target groups with more specific offers complement each other in the portfolio. The growth areas include the imprint LYX, audio download and streaming offerings and digital-only content. The company is being made fit for the future with a broad-based efficiency programme. For the 2018/2019 financial year, the Management Board confirms the targets it announced on 14 June 2018 of consolidated revenue of around EUR 95 million and positive EBIT in the range of EUR 0.5 to 2 million. It must be borne in mind that the expected revenue for the 2018/2019 financial year is missing revenue of around EUR 35 million compared to the previous year due to the sale of BuchPartner GmbH.

Business performance in the first quarter of 2018/2019
In the first quarter of 2018/2019 (from 1 April to 30 June 2018), the Cologne-based publisher generated revenue of EUR 20.8 million after EUR 27.5 million in the same period of the previous year. Consolidated revenue was thus around 24% lower than in the previous year. Adjusted for the discontinued "Retail" segment (BuchPartner), proceeds fell by around 10% as a result of the programme-related fluctuations in the "Book" and "Digital" segments that are typical for the business. Group EBIT amounted to EUR -1.2 million in the period under review after EUR -0.8 million in the previous year. Adjusted for discontinued operations, EBIT fell by EUR 2.3 million to EUR -1.2 million. This is primarily due to the expected revenue decline, the higher cost ratio for royalties and the non-recurring negative effects of approximately EUR 0.5 million from the efficiency programme, which is proceeding as planned. The more conservative amortization system for prepaid royalties had the expected effect year-on-year.

The figures for the first quarter of 2018/2019 were in line with expectations. The Management Board continues to view the prospects for the current financial year as positive. In the context of the Group's strategic realignment, the Management Board and Supervisory Board are persuaded to refrain from a dividend distribution for the 2017/2018 financial year. The increase in the Group's efficiency and the reduction of its debt are clear priorities at present. "2018/2019 will be a year of transition. The efficiency programme is being implemented and business is stable and in line with expectations," says Carel Halff.

The full interim report on the first quarter of 2018/2019 is available online at https://www.luebbe.com/en/investor-relations/financial-reports.


About Bastei Lübbe AG:

Bastei Lübbe AG is a German publishing house with headquarters in Cologne specialising in the publication of books, audio books and e-books with fiction and popular science content. The company's core business also includes the periodically published puzzle magazines and novel magazines. With its total of twelve publishing houses and imprints, the company group currently offers around 3,600 titles in the areas of fiction, non-fiction as well as books for children and young adults. In the growing segment of hardcover fiction books, the company has been the market leader in Germany for many years. At the same time, Bastei Lübbe is an engine for innovation in the area of digital media and distribution channels, among other things by the production of thousands of audio and eBooks. This includes the stake in the renowned game publisher "Daedalic Entertainment".

With annual sales of approx. 107 million euros (financial year 2017/2018), Bastei Lübbe AG is one the largest medium-sized publishing companies in Germany. The shares of the company have been listed in the Prime Standard segment on the Frankfurt stock exchange (GSIN A1X3YY, ISIN DE000A1X3YY0) since 2013. Further information is available at www.luebbe.com.

Contact Bastei Lübbe AG:
Barbara Fischer
Head of Press and Public Relations
Tel.: 0221 / 82 00 28 50
E-Mail: barbara.fischer@luebbe.de