Axel Springer profits from digital business model growth
In the second quarter of the current financial year, Axel Springer’s operating results continued the growth trend of the first three months, thanks in large part to consistently strong growth in its digital activities.
All three of its operating segments – paid models, marketing models, and classified ad models – generated higher revenues and earnings in the first half of 2014. Consolidated revenues were 6.2 per cent higher than the corresponding figure for the first half of last year, while consolidated EBITDA registered an even greater increase of 10.6 per cent. Axel Springer’s EBITDA margin improved to 18.5 per cent. The Group’s digital activities accounted for more than 51 per cent of consolidated revenues and more than 65 percent of consolidated EBITDA in the first half of 2014.
Dr. Mathias Döpfner, chief executive officer of Axel Springer said: “The effects of the ongoing transformation are evident. The revenue and earnings contributions of our digital activities are growing, and they are still the main driver of sustainable, profitable growth. The fact that consolidated EBITDA for the first six months of 2014 rose by an amount in the low double-digit percentage range is completely in line with our positive full-year forecast – and we anticipate a much greater increase for our classified ad models.”
