Axel Springer AG reported consolidated earnings results the first quarter ended March 31, 2013. The company’s consolidated net income for the first quarter was 5.6% higher than the year-ago figure of EUR 68.5 million. Adjusted for significant non-operating effects, consolidated net income amounted to EUR 65.6 million against EUR 77.5 million a year ago. Earnings per share improved by 3.3% from EUR 0.62 to EUR 0.64, while adjusted earnings per share declined from EUR 0.68 to EUR 0.54. At EUR 27.9 million, the free cash flow generated in the first three months of 2013 was 28.2% less than the year-ago figure of EUR 108.3 million a year ago. The company increased its consolidated revenues by 1.8% to EUR 803.6 million against EUR 789.0 million a year ago. As expected, consolidated earnings before interest, taxes, amortization and depreciation, adjusted for non-recurring effects, were influenced by the accelerated transformation of the Group’s business. Thus, Axel Springer’s first-quarter EBITDA of EUR 132.4 million was 3.0% less than EUR 136.5 million a year ago. The company has reduced its net debt from EUR 449.6 million at year-end 2012 to EUR 320.7 million at March 31, 2013. The company provided earnings guidance for the full year 2013. Assuming that the structurally declining trends of the print business do not worsen considerably, the Executive Board continues to anticipate a lower single-digit percentage increase in Group-wide total revenues in financial year 2013. The company anticipates a single-digit percentage decrease in consolidated EBITDA for the full year 2013. The adjusted EPS is expected to be below the 2012 figure, as well This is both due to an earnings decrease, resulting from the operating trends, but also due to a further increase of minorities, resulting from partnerships in the digital expansion.

Deutsche Telekom AG (DB:DTE) might have to divest have to divest Scout24 Holding GmbH to financial investors after Bertelsmann SE & Co. KGaA (DB:BTG4) and Axel Springer AG (DB:SPR) decided against a takeover, Manager Magazin reported without citing sources. The report stated that Deutsche Telekom was asking €2 billion for Scout24 and due to the price Bertelsmann’s Chief Executive Officer, Thomas Rabe cancelled the takeover discussions. Scout24 is assessed to make earnings before interest, taxes, depreciation and amortization (EBITDA) of €80 million per year.

Axel Springer AG, Q1 2013 Earnings Call, May 07, 2013