Bastei Lübbe AG adjusts earnings forecast for fiscal year 2022/2023 due to increased production costs and makes impairment loss on subsidiary company

• Rising costs for printing and paper affect EBIT margin
• Impairment loss of 2.0 million euros at subsidiary smarticular
• Outlook for fiscal year: revenue forecast confirmed, EBIT at 6 to 7 million euros
• Operating EBIT margin of 8.5 to 9.5 percent expected for the full year
• Half-year revenues of 44 million euros, up 3 million euros year-on-year

Cologne, November 4, 2022 - Based on preliminary figures for the first half of the 2022/2023 fiscal year, Bastei Lübbe AG (ISIN DE000A1X3YY0) has achieved its Group revenue expectations with 44 million euros (previous year 41 million euros), but is below expectations in terms of preliminary EBIT with 0.9 million euros This was mainly due to the reduced earnings contribution and the goodwill impairment for the subsidiary smarticular, as well as the stronger than expected increase in prices for paper and printing in the core business. Excluding the impairment loss on the subsidiary, the half-year EBIT amounts to 2.9 million euros.

Goodwill impairment for subsidiary smarticular

The earnings contribution of smarticular, the Berlin-based community publisher focusing on sustainable living, declined significantly in the reporting period. The Executive Board of Bastei Lübbe has therefore decided to make an impairment charge to the value of the subsidiary. The adjustment requirement amounts to 2.0 million euros as of September 30, 2022. Bastei Lübbe already initiated comprehensive measures in the summer to improve the profitability of the subsidiary. This includes a reorganization of the management and a strategic adjustment of the company.

Forecast adjusted

Based on the preliminary figures, the rising costs of production and the impairment loss at smarticular, the Executive Board now expects the Group to generate EBIT in the range of 6.0 to 7.0 million euros for the year as a whole (previously 9.5 to 10.5 million euros). The EBIT margin will then be 6.5 to 7.5 percent (previously 10 to 11 percent). The EBIT margin for the current fiscal year is then 6.5 to 7.5 percent (previously 10 to 11 percent). Adjusted for the goodwill impairment of smarticular, an operating EBIT margin of 8.5 to 9.5 percent is expected. Revenues are still expected to be in the range of 90 to 95 million euros.

"Our core business continues to prove robust and performing. Despite the difficult conditions, we confirm our revenue forecast of 90 to 95 million euros for the full year and generate an attractive operating profit margin of around 9 percent," said Soheil Dastyari, CEO of Bastei Lübbe. "At smarticular, we have already started to realign the company in terms of personnel and strategy and are confident that we will be able to return to our growth path with a time lag."

Core business defies weak consumer climate

The core business of the publishing house is proving to be stable and still profitable despite high inflation and continuing consumer restraint. This is reflected in revenues, which grew from 41 million euros to 44 million euros for the six months ended September 30, 2022, compared to the previous year. However, the stronger than expected increase in costs for printing and paper resulted in a decline in the margin. The community-driven business model of the publishing brand LYX continues to develop positively.

Bastei Lübbe will publish the complete half-year report for the 2022/2023 fiscal year on November 10, 2022.

About Bastei Lübbe AG:

Bastei Lübbe AG is a German general-interest publisher based in Cologne, specialising in the publication of books, audio books and e-books featuring fiction and popular science content. The company’s core business also includes the periodically published novel booklets. With a total of fifteen imprints, the group currently offers several thousand titles in the fields of fiction, non-fiction and children’s and young people’s books. In the growing segment of hardcover fiction, the company has been one of the market leaders in Germany for many years. At the same time, Bastei Lübbe is a driver of innovation in digital media and exploitation channels through the production of thousands of audio and e-books among other things.

With annual revenues of around 95 million euros (2021/2022 financial year), Bastei Lübbe AG is one of the largest medium-sized companies in the German publishing industry. Its shares have been listed in the Prime Standard of the Frankfurt Stock Exchange (WKN A1X3YY, ISIN DE000A1X3YY0) since 2013. Further information can be found at www.luebbe.de.

Contact Bastei Lübbe AG:

Barbara Fischer
Head of Press and Public Relations
Phone: +49 (0)221 8200 2850
E-Mail:barbara.fischer@luebbe.de