Announcements: 28 June 2016Did you know?… Penguin Random House publishes close to fifty Spanish language titles a year in the U.S. With two dedicated Spanish language imprints – Vintage Español and Celebra – our Spanish language publishing program boasts strong backlist sales in commercial and literary fiction, as well as nonfiction from celebrity authors. Topping our bestselling titles from 2015 is the Spanish expand
Announcements: 27 June 2016The growing excitement for Kiersten White’s new YA novel, AND I DARKEN, which goes on sale Tuesday, June 28, began with the book’s editor, Wendy Loggia, Executive Editor, Delacorte Press: “Whatever Kiersten White does, I’m on board, so when she said she was writing a novel in which Vlad the Impaler was a girl, I couldn’t wait. AND I DARKEN is the story of Lada Dragwlya, the brutal, driven princess, her brother, Radu, and Mehmed, the Sultan. expand
Announcements: 24 June 2016Earlier this month, I left behind the bustling city streets of Manhattan for the quaint, cobblestoned roads of Gütersloh, Germany, where one hundred Penguin Random House colleagues from around the world joined with more than four hundred Bertelsmann colleagues for the Bertelsmann Management Meeting. It was extraordinary to have all of us in the place where, for me, everything started (the picture shows me on one of my first days at Bertelsmann!). Before taking my first job there after university, I grew up not far from Bertelsmann’s Gütersloh expand
Announcements: 24 June 2016Bestselling author and essayist Chuck Klosterman will be celebrating the release of his new book BUT WHAT IF WE’RE WRONG (Blue Rider Press) at Villain, LLC in Williamsburg on Wednesday, June 29 at 7pm. Joining Klosterman in conversation is Wesley Morris of The New York Times. expand
Announcements: 23 June 2016Revisiting our early June post about Riverhead’s Fundraiser for Libraries Without Borders, this month-long campaign has now generated nearly $5,000 in donations, with one week left for people to contribute. Anyone who makes a donation of $250 or more receives a 3D head of the author of their choosing. Riverhead Design Labs partnered with Leblox to create 3D heads of some of the imprint’s most iconic authors, such as Junot Diaz, Marlon James, Ann Lamott, and expand
Announcements: 23 June 2016What has kept this phenomenon going strong for 29 years? Peter Benchley, author of Jaws and bonafide shark expert, should know. He says: “People are, and always have been, simultaneously intrigued and terrified by sharks. Sharks come from a wing of the dark castle where our nightmares live—deep water beyond our sight and understanding—and so they stimulate our fears and fantasies and imaginations.” expand
Announcements: 22 June 2016June is Alzheimer’s and Brain Awareness Month. According to the Alzheimer’s Association, 47 million people are living with Alzheimer’s and other dementias worldwide. Add to that the number of caregivers and those directly affected grows exponentially. Awareness inspires action and the following titles on brain health, Alzheimer’s and dementia aim to educate, support and inspire. expand
Announcements: 20 June 2016Penguin Random House Audio and the Audio Publishers Association are celebrating June as Audiobook Month with a new awareness campaign: “A Good Audiobook Speaks Volumes,” featuring video PSAs with prominent authors. Dozens of bestselling authors from across the industry are creating videos sharing why they love audiobooks, including Chelsea Clinton, Whoopi Goldberg, Stephen King, Tyler Oakley, James Patterson, and many more. expand
Announcements: 20 June 2016Penguin Random House presented $112,000 in scholarships to 56 New York City public high school seniors during the 2016 Live and Onstage Creative Writing Awards Show on June 7 at NYC’s Symphony Space. The awards presentation included dramatic readings, spoken-word poetry, and graphic-novel presentations from a selection of winners, including this year’s newest $10,000 scholarship recipient of the Maya Angelou Scholarship Award for Spoken Word Poetry. expand
Announcements: 17 June 2016Random House Children’s Books has been selected as the official publisher for the 11th anniversary of Jumpstart’s Read for the Record, a national campaign that helps address educational inequalities and works toward the day when all children have the skills they need for kindergarten and lifelong success. expand
Announcements: 16 June 2016The Southern Independent Booksellers Alliance (SIBA) has announced the creation of The Pat Conroy Scholarships in honor of our late author, whose lifetime achievements have meant so much to Southern booksellers. The scholarships, which will be bestowed to two booksellers annually in each of the next four years, are made possible by Penguin Random House, whose Nan A. Talese/Doubleday, Dial Press Trade Paperbacks, and Random House Audio imprints publish Mr. Conroy’s works in hardcover, paperback, and audio editions respectively. expand
Announcements: 16 June 2016This Sunday we celebrate fathers. Dad is always there to lend a hand, provide much needed advice, and loves you unconditionally. But what if he’s not? Maybe you always sought that Hallmark relationship, never to find it. Or, perhaps, you are sick to death of sappy cards, or completely unrelatable Hollywood interpretations of what a father should be. This week, we’ve collected a list of literary bad dads, from despicable and cruel to murderous and vengeful, here are some of the worst fathers in fiction! expand
Announcements: 15 June 2016“Or I could decide that, even in the wake of such unspeakable malice, I could live a purposeful life by choosing hope.” – Kaitlin Roig-DeBellis, CHOOSING HOPE “When I was a boy and I would see scary things in the news, my mother would say to me, “Look for the helpers. You will always find people who are helping.” To this day, especially in times of “disaster,” I remember my mother’s words and I am always comforted by realizing that there are still so many helpers – so many caring people in this world.” – Mr. Rogers expand
Announcements: 14 June 2016New York Times-bestselling, two-time Edgar-award-winning author Steve Hamilton will be joined in conversation by fellow bestselling Penguin Random House author, Lee Child. The two acclaimed crime writers will discuss Hamilton’s novel THE SECOND LIFE OF NICK MASON (G.P. Putnam’s Sons) at Barnes & Noble on the Upper East Side on Thursday (6/16) at 7:00pm. expand
Announcements: 13 June 2016Penguin Books author and illustrator Johanna Basford, who has been called “The Queen of Coloring Books,” will be awarded an OBE, “for services to Art and Entrepreneurship,” by Queen Elizabeth II. “I received a letter a few weeks ago to say I would be receiving an OBE as part of the Queen’s (90th) Birthday Honors this year,” Ms. Basford posted on her blog. “This was so unexpected that I called Buckingham Palace to check if they had made a mistake! If I’m honest, I don’t feel I expand
Announcements: 13 June 2016Penguin Young Readers is donating 100,000 books to the National Diaper Bank Network (NDBN) this fall. The donation is in partnership with the Clinton Foundation initiative, Too Small to Fail. These books will be distributed to 33,000 households – 3 books per family – in 20 diaper bank communities across America. Too Small to Fail announced the partnership at the Clinton Global Initiative America conference on Monday, June 13, in Atlanta. expand
Announcements: 13 June 2016The advance buzz for Emma Cline’s THE GIRLS, which Random House is publishing on Tuesday, June 14, has been tremendous. The book’s editor, Kate Medina, Executive Vice President, Executive Editorial Director, Associate Publisher, Random House, became an instant fan: “It took only two pages for me to shut my door, cancel everything, and not get up until I had finished reading this beautifully written, spellbinding novel by a remarkable young writer. expand
Announcements: 9 June 2016Author E. Lockhart will present her New York Times bestselling YA novel WE WERE LIARS (Delacorte Press) as part of Barnes & Noble’s B-Fest teen book festival. Guests can meet E. Lockhart, ask her questions, and get their books signed on Saturday (6/11) at 5:00pm at Barnes & Noble in Park Slope. expand
Announcements: 9 June 2016#FRIDAY READS PALINDROMES Save the date! Forwards or backwards the next ten days are palindromes! Palindromes are words, numbers, or phrases that are identical when read in reverse order (i.e. kayak, noon, Madam I’m Adam, 101, and 53235). In celebration of this ‘novel‘ occurrence check out these examples of books with palindromes for titles. expand
Announcements: 8 June 2016Crown Publishing Group author Lisa McInerney has won the Baileys Women’s Prize for Fiction for her novel THE GLORIOUS HERESIES, which will be published by Tim Duggan Books on August 9, 2016. The prize was announced in London Wednesday evening and is the UK’s most prestigious annual book award for fiction written by a woman. Founded in 1996 as the Orange Prize for Fiction, this award “celebrates excellence, originality and accessibility in writing by women from throughout the world.” expand
Announcements: 8 June 2016
Penguin Classics Donates Pelican Shakespeare Editions for Shakespeare in the Park's Student & Educator NightIn collaboration with the NYC Department of Education and The Public Theater, Penguin Classics donated Pelican Shakespeare editions, including newly repackaged editions of KING LEAR, ROMEO AND JULIET, HAMLET, and MACBETH, to hundreds of NYC public school students, teachers, and principals for Student & Educator Night at Shakespeare in the Park on June 2 at the Delacorte Theatre in Central Park. Attendees received the Pelican Shakespeare editions to accompany their viewing of The Taming of the Shrew, directed by Phyllida Lloyd with an all-female cast starring Janet McTeer. expand
Announcements: 8 June 2016Riverhead Books has begun a month-long fundraiser for Libraries Without Borders. The organization is doing incredible work bringing books, tutors, computers and more to the refugee camps in the Middle East and Europe to help Syrian refugees. Riverhead is committed to not only amplifying and celebrating unheard voices, but also doing what we can in the fight for global literacy and access to technology. As such, Riverhead Design Labs has partnered with expand
Announcements: 8 June 2016PORCELAIN, the piercingly tender, warmly funny and sometimes harrowing memoir written by Moby, internationally renowned singer-songwriter, musician and DJ. Scott began his career in book publishing at Doubleday in 1991, and has also held positions at expand
Announcements: 8 June 2016June is National Great Outdoors Month as proclaimed by President Obama through the American Recreation Coalition. With the start of summer many Americans are planning vacations to our National Parks, but spending time out of doors doesn’t require a lot of planning and expense. How does the Sam Cooke song go? “Flowers in Spring, the robins that sing, the sunbeams that shine, they’re yours and they’re mine… best things in life they are free.” expand
Announcements: 6 June 2016Terry McMillan, #1 New York Times bestselling author of HOW STELLA GOT HER GROOVE BACK and WAITING TO EXHALE, has written an inspiring story of a woman who shakes things up in her life to find greater meaning. In Terry’s upcoming book, I ALMOST FORGOT ABOUT YOU, which goes on sale from Crown on June 7, Dr. Georgia Young’s wonderful life–great friends, family, and successful career–aren’t enough to keep her from feeling stuck and restless. When she decides to make some major changes in her life, including quitting her job as an expand
Announcements: 6 June 2016Pat Conroy, beloved author of THE PRINCE OF TIDES, has a new nonfiction collection of letters, interviews, and magazine articles spanning Conroy's long literary career, supplemented by touching pieces from Conroy's many friends, which will be published as A LOWCOUNTRY HEART: Reflections on a Writing Life by Nan A. Talese/Doubleday on October 25, 2016. Nan A. Talese, Publisher, acquired World rights from Marly Rusoff of the Marly Rusoff Literary Agency. expand
Announcements: 1 June 2016Listening Library, Penguin Young Readers and Random House Children’s Books are celebrating Pride Month with a newly redesigned ReadProudListenProud.com, an online resource for LGBTQ literature recommendations designed to spark discussion in the classroom and at home and to encourage understanding through storytelling, celebrating everyone for who they are. expand
Announcements: 1 June 2016In this special edition of There’s a Book for That! We have adapted our moniker to reflect June’s focus on audiobooks. Founded and promoted by the Audio Publishers Association(APA), this year’s National Audiobook Month campaign, “A Good Audiobook Speaks Volumes,” launches June 1st and lends us the opportunity to feature popular titles and highlight the fact that listening to books has never been more popular – whether they are read by the author or an accomplished narrator. APA’s annual survey results, as reported expand
Announcements: 31 May 2016The “Podcasting at Penguin Random” Speakers Series event, which was presented on May 24 at 1745 Broadway’s Café Auditorium, featured a terrific panel of talented in-house podcasters: Karen Dziekonski (Executive Producer, Audio, and co-host of “This is the Author”), Lindsay Jacobsen (Associate Manager, Consumer Engagement, and co-host of “Beaks and Geeks”), Pat Stango (Senior Producer, Video, and host of “How to Watch Movies the Right Way”), Abbe Wright (Read it Forward Editor, and host of “Book Club Appetizer”), and Dan Zitt expand
Announcements: 27 May 2016Stuart Applebaum, our Emeritus Executive Vice President, Corporate Communications, was honored by UJA-Federation of the New York Publishing Division with its esteemed Harry Scherman Service Award for his nearly four-and-a-half-decade-long career and commitment to philanthropy. More than 500 book people from across the industry turned out for this expand
Announcements: 26 May 2016#FRIDAYREADS Mt. Everest is in the news again for tragic reasons. Three people have died, in as many days, on the 29,035-foot peak, reportedly of altitude sickness. Rescue efforts are ongoing for two other missing climbers. More than 400 people have tried to climb Everest this season, including 288 foreigners and more than 100 Sherpas and guides, said Sudarshan Dhakal, director of the Nepal Tourism Department. That’s more than the average for previous seasons, he said. expand
FEATURED TITLES: LEFT FOR DEAD: MY JOURNEY HOME FROM EVEREST by Beck Weathers, Stephen G. Michaud In 1996 Beck Weathers and a climbing team pushed toward the summit of Mount Everest. Then a storm exploded on the mountain, ripping the team to shreds, forcing brave men to scratch and crawl for their lives. Tie-in to “Everest”, starring Josh Brolin, Jake Gyllenhaal, Keira Knightley, and Robin Wright. THE CALL OF EVEREST: THE HISTORY, SCIENCE, AND FUTURE OF THE WORLD’S TALLEST PEAK by Conrad Anker, Thomas Hornbein, Bernadette McDonald, David Breashears Gripping and sumptuous, this is the definitive book on the history, mystique, and science of Mount Everest, including how climate change is impacting the world’s tallest mountain. DEAD LUCKY: LIFE AFTER DEATH ON MOUNT EVEREST by Lincoln Hall Lincoln Hall’s breathtaking account of surviving a night in Everest’s “death zone.” INTO THE SILENCE: THE GREAT WAR, MALLORY, AND THE CONQUEST OF EVEREST by Wade Davis The definitive story of the British adventurers who survived the trenches of World War I and went on to risk their lives climbing Mount Everest. EVEREST, REVISED AND UPDATED: MOUNTAIN WITHOUT MERCY by Broughton Coburn The terror and triumph of the May 1996 climbing season on Mount Everest will go down in infamy. Made famous by Jon Krakauer’s bestseller INTO THIN AIR and recounted in David Breashears’s gripping IMAX film, the story is relayed in National Geographic’s gripping volume, updated with brilliant new panoramic photography. INTO THIN AIR: A PERSONAL ACCOUNT OF THE MT. EVEREST DISASTER by Jon Krakauer A bank of clouds was assembling on the not-so-distant horizon, but journalist-mountaineer Jon Krakauer, standing on the summit of Mt. Everest, saw nothing that “suggested that a murderous storm was bearing down.” He was wrong. FOR YOUNG READERS: WHERE IS MOUNT EVEREST? by Nico Medina, John Hinderliter, David Groff - Ages 8 to 12 In this compelling narrative, Nico Medina guides readers through the mountain’s ancient beginnings, first human settlers, historic climbs, and the modern commercialization of mountain-climbing. TRIUMPH ON EVEREST: A PHOTOBIOGRAPHY OF SIR EDMUND HILLARY by Broughton Coburn – Ages 10 and up This exciting photobiography celebrates the extraordinary life of the New Zealand farm boy who in May 1953 became the first person known to have reached the summit of Mount Everest. With climbing partner Tenzing Norgay, the iron-willed Hillary crossed deadly icefalls, clawed his way up vertical walls, and persevered through gale-force winds until he finally stood at the top of the world. For more information on these and related titles visit the Edelweiss collection: Mount Everest Titles
Announcements: 26 May 2016Bestselling Penguin Random House authors Emma Straub and Meg Wolitzer will appear at Barnes & Noble on the Upper West Side on Tuesday (5/31), at 7pm for a discussion and celebration of Straub’s highly anticipated new novel MODERN LOVERS, which goes on sale from Riverhead Books on May 31st. expand
Announcements: 25 May 2016National Book Award finalist and New York Times-bestselling author Jean Thompson returns with her most psychologically penetrating novel yet, SHE POURED OUT HER HEART, which goes on sale from Blue Rider Press on May 31. The book charts the course of a tumultuous, twenty-year friendship between two dissimilar best friends from college. Bonnie (single, witty, up-for-anything, sexually adventurous, prone to romantic disasters) and Jane expand
- “With piercing empathy and incandescent humor, Thompson considers the riddles of sexual passion and love, self and change, loyalty and forgiveness, forging an engrossing novel of crackling insights and ambushing drama.” – Booklist (Starred review)
- “National Book Award finalist Thompson illustrates the sometimes-ugly complexities of women’s friendships in an account of a decades-long relationship between two very different women…Thompson’s many fans will…find moments of clarity and insight in this parallel character study.” – Publishers Weekly
- “Both Jane and Bonnie are well-crafted characters, reflecting Thompson’s consistent knack for capturing the emotional seas within seemingly conventional middle-class Midwesterners. (She’s also excellent at depicting children, so often an afterthought in such novels.)” – Kirkus Reviews
Announcements: 25 May 2016May 30th is Memorial day. The last Monday in May, originally designated as "Decoration Day" in 1868, honors American men and women who have died in service to our Country. Memorial Day was borne out of the Civil War and was officially proclaimed by General John Logan, national commander of the Grand Army of the Republic"for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during expand
Announcements: 24 May 2016James Dashner fans everywhere are invited to take part in the #DASHNERDASH BINGE READ, a rereading of all four titles in the bestselling Maze Runner series, in advance of the September 27 publication of the eagerly anticipated Maze Runner prequel novel, THE FEVER CODE. When discussing the reread on social media, readers are encouraged to use the hashtag #DashnerDash to follow along in the conversation. expand
Announcements: 24 May 2016Our #PenguinRandomArt campaign continues, with two original paintings by renowned UK artist Harland Miller now displayed at Penguin Random House’s 375 Hudson Street offices in New York. To celebrate the installation of these paintings on Friday (5/20), Penguin Publishing Group President Madeline McIntosh hosted a reception with a group of colleagues that featured a toast to the art by Penguin Random House Chairman John Makinson, who commissioned expand
Announcements: 23 May 2016Penguin Random House continues its longstanding run as Publishing Sponsor of Shakespeare in the Park, produced by the Public Theater and presented in Central Park’s Delacorte Theatre beginning on Tuesday, May 24, with an all-female version of The Taming of the Shrew, directed by Phyllida Lloyd and featuring Olivier Award nominee Cush Jumbo as Katherina and Tony Award winner Janet McTeer as Petruchio. The Taming of the Shrew performances are presented through June 17. Troilus and Cressida, directed by Tony Award winner Daniel Sullivan, will be staged from July 19 to August 14. expand
News and Information: 19 May 2016National Readathon Day is almost here! Get ready to post reading selfies all day long, and be sure to follow the hashtag #Readathon2016 to see authors and readers across the country do the same. Watch the video and click the stories below to get up to speed and find out everything you need to know for tomorrow. expand
Announcements: 19 May 2016As dad to two teenagers, it was only a matter of time before I was introduced to the concept of Throwback Thursday. This week, I have a few reasons to throw back in advance of the second annual National Readathon Day, happening this coming Saturday, May 21. expand
Announcements: 19 May 2016Since 1990, during the month of May, America has celebrated the historic and cultural contributions of Asian Americans and Pacific Islanders to our society. In honor of this special month, we’ve compiled a list of books that represent authentic Asian Pacific American voices on merging cultures, identity questions, discrimination, language barriers, religion, history, family, education, and the future. expand
Announcements: 19 May 2016The Random House US and Penguin Random House UK children’s divisions of Penguin Random House will jointly publish a young adult adaptation of Dan Brown’s #1 worldwide bestseller, THE DA VINCI CODE this fall. The acquisition was announced on May 18th by Barbara Marcus, President & Publisher of Random House Children’s Books (US), and Francesca Dow, Managing Director, Penguin Random House Children’s UK, who obtained World English rights from Heide Lange of Sanford J. Greenburger Associates. expand
Announcements: 19 May 2016Tim Tebow, former NFL quarterback, Heisman Trophy winner and popular sports broadcaster, has reached an agreement with WaterBrook, an imprint of the Crown Publishing Group, to author a new book scheduled for publication on October 25, 2016. SHAKEN: Discovering Your True Identity in the Midst of Life’s Storms combines never-before-told, personal stories from Tebow’s football experience and life with biblical teaching on anchoring identity and self-worth. As part of the agreement, WaterBrook will create a companion video Bible study and other products. expand
Announcements: 18 May 2016Let’s paint Facebook with a little bit of orange and put our “Read” stamp in Facebook feeds across the country. Join your colleagues, authors, and readers everywhere and celebrate #Readathon2016 this Saturday, May 21, by updating your Facebook profile picture with our “Read” badge. It’s as easy as 1, 2, 3! expand
Announcements: 17 May 2016On Friday (5/20) at 7pm at Barnes & Noble on the Upper West Side, Jojo Moyes will discuss and sign copies of her #1 New York Times bestselling novel, ME BEFORE YOU, published by Viking/Pamela Dorman Books/Penguin Books. Moyes will also share the trailer for the upcoming film based on her blockbuster book which is now available in a new movie tie-in paperback edition. expand
Announcements: 17 May 2016Renowned UK artist Harland Miller, who gained notoriety for his original paintings on large canvases inspired by Penguin Books cover designs, has completed a number of new Penguin book-themed paintings. Commissioned by Penguin Random House Chairman John Makinson and donated by a Penguin business partner pre-merger, this original artwork is in the process of being installed at Penguin Random House locations worldwide, including 375 Hudson Street in New York as well as offices in London, Toronto, Australia, India, New Zealand, South Africa, Ireland, and Sao Paulo, Brazil. expand
News and Information: 17 May 2016The winner of the 2016 Man Booker International Prize is Han Kang, for THE VEGETARIAN, published by Hogarth, an imprint of the Crown Publishing Group, it was announced on Monday in London. Ms. Han shares the award with the book’s translator, Deborah Smith, the pair splitting the most prestigious prize for translated fiction in the UK. Warm congratulations to Ms. Han and her publisher, as well as Ms. Smith. expand
Announcements: 15 May 2016As we near National Readathon Day, happening this Saturday, May 21, readers everywhere will now be able to contribute to #Readathon2016 through its newly launched Donate campaign on Facebook. All Facebook users will be able to make a commitment to early childhood literacy through the Donate button now available on the ALA Facebook page, which seamlessly facilitates swift and secure online contributions to National Readathon Day on the Facebook platform. expand
News and Information: 15 May 2016These are the words that open Stephanie Danler’s extraordinary debut novel, SWEETBITTER, which will be published by Alfred A. Knopf on May 24, introducing readers to Tess, the book’s twenty-two-year-old narrator: “You will develop a palate. A palate is a spot on your tongue where you remember. Where you assign words to the textures of taste. Eating becomes a discipline, language-obsessed. You will never simply eat food again.” expand
News and Information: 15 May 2016The Crown Publishing Group announced that it has relaunched ReadItForward.com. With an active online community of over 385,000 members, Read It Forward is a publisher-agnostic book vertical that helps readers discover exciting new books and classic reads. Managed by the Crown Publishing Group’s Community Development team, the site has grown substantially, in volume and in editorial content, since its creation in 2008. The new design features a fresh, modern look; a more intuitive site navigation; and an editorial shift toward long-form content, original essays by bestselling authors, and curated book recommendations from the Read It Forward staff. expand
- Book Club Appetizer: a podcast hosted by Abbe Wright (Editor, Read It Forward) and Alana Buckbee (Sr. Manager, Community Development, Crown Publishing Group), recommended as an audio “kickoff” for book club meetings. Each episode focuses on a single title, beginning with plot discussion and thoughts on favorite characters, and culminating in an interview with the book’s author. Participating authors include such notables as Amber Brock (A FINE IMITATION, Crown), Anton DiSclafani (THE AFTER PARTY, Riverhead Books), Camille Perri (THE ASSISTANTS, G. P. Putnam’s Sons), Hannah Pittard (Listen to Me, Houghton Mifflin Harcourt), and Nicola Yoon (THE SUN IS ALSO A STAR, Delacorte Press).
- The Book Apothecary: a web-based application that prescribes the perfect book to fit any mood (inspired by the Crown bestselling book THE LITTLE PARIS BOOKSHOP by Nina George).
- What We’re Reading: a weekly newsletter, which features curated picks from bestselling authors and the Read It Forward editorial team.
- #AskaLibrarian: the weekly Twitter recommendation hour, in partnership with Library Journal, Penguin Random House, and librarians across the country.
- BookBento: still life photography featuring new titles, as well as favorite backlist reads, that creates a browsable bookstore on Instagram.
News and Information: 12 May 2016May has been Mental Health Month since 1949. This year’s theme is “Life with a Mental Illness.” Over the decades, the topic of mental health has certainly become more prominent, with the help of a growing number of recognizable people “coming out” with their mental disorders and increasing reporting in popular media. expand
News and Information: 12 May 2016As part of our Publisher Profile series, Nancy Paulsen, president and publisher of her eponymous Penguin Young Readers imprint, shares personal insights into her outstanding career in book publishing, her bestselling, award-winning authors – Jacqueline Woodson, Lynda Mullaly Hunt and Maira Kalman, among them – as well as new books and authors she is looking forward to publishing in the coming year. expand
News and Information: 12 May 2016Roger Scholl, Vice President, Executive Editor, Crown Publishing Group, delves inside the acquisition, editing and impact of A MOTHER’S RECKONING: Living in the Aftermath of Tragedy by Sue Klebold, the mother of Columbine shooter Dylan Klebold. expand
Announcements: 8 December 2015
News and Information: 22 April 2015PenguinRandomHouse.com. Watch the video above and click here to learn more and explore the site.
Press Release: 31 March 2015
Berlin, March 31, 2015 – Bertelsmann in the last fiscal year increased both its revenues and its operating result to the highest levels in seven years, while again investing in growing its business: The international media, services and education company improved its growth profile and expanded its digital business as well as its international presence with the acquisition of the e-learning provider Relias Learning in the United States and majority stakes in the video marketer SpotXchange and the multichannel network StyleHaul.expand
- Revenues increase 3.1 percent to €16.7 billion
- Operating EBITDA grows 2.7 percent to €2.37 billion
- Group profit affected by special items
- Investments continue at high level and hit €1.6 billion
- Advances in strategy implementation improve growth profile
- Merger of Penguin and Random House contributes to growth
- Education business as third pillar alongside media and services
- Medium-term target for Group profit at €1 billion
Revenues from Bertelsmann’s continuing operations grew by 3.1 percent, to €16.7 billion in 2014 (previous year: €16.2 billion). Key drivers were strategic transactions such as the merger of the Penguin and Random House trade book publishing groups, the full acquisition of the music rights company BMG, and the expansion of financial and e-commerce services at Arvato. The downscaling of businesses in structural decline in part offset this growth.
During the past fiscal year, Bertelsmann improved its operating EBITDA by 2.7 percent, to €2.37 billion, also the highest level since 2007 (previous year: €2.31 billion). In particular, the result reflects a record performance by Mediengruppe RTL Deutschland, a strong list of bestsellers at Penguin Random House in the U.S. and U.K., and growth in the music rights business. The EBITDA margin was again high at 14.2 percent (previous year: 14.3 percent).
Group profit of €573 million was below the prior year’s level of €885 million. This was the result of downscaling the print and direct-marketing businesses, expenditures on profitimprovement measures, a value adjustment to the Hungarian television business, and the absence of special items which had boosted group profit the previous fiscal year.
Thomas Rabe, Chairman and CEO of Bertelsmann, said: “2014 was a gratifying year for us. Our revenue is the highest it has been in seven years. The same goes for our operating result – it is one of the best in Bertelsmann’s history. The implementation of our strategy is paying off. We again made a number of major advances during the past year. We significantly increased our activities in high-growth areas, further expanded the globally unique diversity of our creative activities and services, and at the same time disposed of businesses in structural decline. This transformation over the past few years has significantly improved the company’s growth profile. Since 2012 alone, we have invested more than two billion euros in growth businesses. We will keep up this brisk pace and continue to invest in expanding existing businesses and building new ones in the years ahead. The contours of the ‘new Bertelsmann’ are already clearly visible – faster growing, more digital, and more international than before.”
By successfully implementing its strategy Bertelsmann increased the revenue contribution of high-growth businesses to 27 percent in 2014 (2011: 22 percent). In this three-year period, the revenue share of structurally declining businesses fell from 15 percent to below 10 percent. In the medium term, growth businesses are expected to make up around 40 percent of group revenues, businesses in structural decline about five percent.
Thomas Rabe emphasized that in 2014 and the first few months of the present year, Bertelsmann had taken big steps towards reaching all four of its strategic priorities – strengthening the core, digital transformation, expanding growth platforms, and forging ahead in growth regions.
For instance, the core businesses were strengthened by the expansion of RTL Group’s families of channels, as well as increasing distribution revenues from platform operators. At Penguin Random House, the world's largest trade book publishing group, the integration of the two companies has progressed faster than planned; the merger is already paying off on the creative and commercial fronts: Penguin Random House publishers achieved outstanding creative results on all continents. The publishing group rose to number one in the Latin American Spanish-language book market through the acquisition of Santillana’s Spanish- and Portuguese-language trade publishing businesses. Similarly, the complete takeover of Gruner + Jahr in 2014 was a strategic milestone. Bertelsmann will continue to develop Gruner + Jahr into a leading house of content by, among other initiatives, investing in the company’s transformation. Concurrently, Bertelsmann intensified the downscaling of businesses in structural decline: the Group sold businesses including Brown Printing in the U.S., the Italian printing operations and the calendar business, and decided to discontinue the German club business at the end of this year. In parallel, Bertelsmann launched a number of measures to improve the results of its core businesses, with a medium-term volume of about €500 million.
Bertelsmann also increased its footprint and reach in the digital world. RTL Group’s catchup services, its web productions and web channels, and its multi-channel networks together recorded 36.4 billion online video views in 2014, turning RTL Group into the world's fourthlargest provider of online video content. Penguin Random House last year expanded its e-book catalog to more than 100,000 titles, and sold over 100 million of its titles in electronic form worldwide. Gruner + Jahr expanded its portfolio of e-magazines, high-reach mobile sites and apps, and its digital advertising sales. Arvato achieved further growth as a service provider for IT, high-tech and e-commerce companies. Bertelsmann’s various companies and editorial platforms now reach about 750 million followers on Twitter, Facebook, Google+ and YouTube via their social media channels.
An important milestone in the Group’s expansion of its growth platforms in 2014 was the acquisition of the online education provider Relias Learning, also Bertelsmann’s biggest purchase in the U.S. since the acquisition of Random House in 1998. Investments in California-based Alliant University and the educational services provider Synergis Education served to further expand the education business. In addition, RTL Group subsidiary Fremantle Media bought the majority of shares in TV production company 495 Productions; Arvato acquired the e-commerce service provider Netrada; and BMG, among a number of deals, purchased the music publishers Talpa and Union Square, and the music-rights catalogs Montana and Hal David.
Bertelsmann also expanded its business activities in growth regions. The company enlarged its content businesses, including Penguin Random House’s trade publishing operations in India, and its TV business in Asia. Here, RTL Group and CBS Studios International launched a second joint pay-TV channel. Also, BMG entered the market in China. In the course of last year, the Bertelsmann Asia Investments fund participated in eleven promising companies with predominantly digital business models – more than ever before in a single year – and significantly increased the value of its portfolio. Bertelsmann’s investments in China include the online shopping platform Mogujie and the leading online performance marketing company iClick. In India, Bertelsmann made investments in several businesses, including digital marketplace Pepperfry and education provider iNurture.
Bertelsmann Chairman and CEO Thomas Rabe said: “There is hardly another media company that is transforming as rapidly as we are. Our strong core businesses, numerous growth initiatives, and ongoing acquisitions will, step by step, increase our revenues to around 20 billion euros in the years ahead. Our education business and our activities in the growth regions of Brazil, China and India will each contribute one billion to this overall number.”
Business expansion again led to a high investment volume in 2014. Including financial debt assumed, Bertelsmann invested €1.6 billion (previous year: €2.0 billion), mainly in the acquisitions of Relias Learning, SpotXchange and StyleHaul, Santillana, and the Netrada group. There were also acquisitions of music catalogs and packages of film rights. Net financial debt rose to €1.69 billion (previous year: €681 million) due to the acquisition activities. The previous year’s value also included proceeds from the placement of RTL Group shares. The Group’s broader economic debt increased to €6.04 billion at December 31, 2014, partly due to higher provisions for pensions, after €4.22 billion in the previous year. Adjusted operating free cash flow amounted to €1.71 billion (previous year: €1.83 billion). Thomas Rabe added: “Bertelsmann is on an expansionist course – we have started this year off nicely. Given the ongoing transformation of our Group, we expect higher revenues and higher operating EBITDA in 2015. We want to significantly increase our Group profit to one billion euros in the medium term.”Bertelsmann’s employees are participating in the successes achieved: For the past financial year, they will receive profit participation amounting to €85 million. In accordance with the terms governing the Bertelsmann 2001 profit participation certificate (ISIN DE0005229942), 15 percent on the nominal value will be paid out on May 6, 2015. The payout for the 1992 profit participation certificate (ISIN DE0005229900) will be 5.93 percent (previous year: 7.49 percent).
Other key financials:
Special items amounted to € -619 million compared to € -46 million the previous year, and are largely attributable to the strategic measures taken in 2014. The downscaling of business in structural decline resulted in restructuring expenses and value adjustments in Bertelsmann’s print, club and direct-marketing operations. The sale of Be Printers’ Italian print unit led to a disposal loss. Spendings on profit-improvement measures also resulted in higher special items. Furthermore, there was a write-down on RTL Group’s TV business in Hungary, where the national parliament had levied a new tax on advertising income.
In the reporting period, Bertelsmann generated net cash from operating activities of €1,523 million (previous year: €1,779 million). The Group’s long-term operating free cash flow adjusted for non-recurring items was €1,711 million (previous year: €1,826 million). The cash conversion rate was 97 percent (previous year: 104 percent), which puts it within the target corridor of 90 to 100 percent.
Total assets increased to €21.5 billion as of December 31, 2014 (previous year: €21.4 billion). The increase is mainly attributable to acquisitions during the reporting period, as outlined above. Cash and cash equivalents were reduced to €1.3 billion (previous year: €2.7 billion); this is due mainly to the repayment of financial debt during the past business year. Equity stood at €8.4 billion (previous year: €8.8 billion). As a result, the equity ratio was down slightly at 38.9 percent (previous year: 40.9 percent).
Total investments including financial debt assumed were €1,601 million (previous year: €1,988 million). Due to the acquisitions of Relias Learning and Santillana, and of majority stakes in SpotXchange and StyleHaul, the purchase price payments for consolidated holdings were higher year on year, at €820 million (previous year: €501 million). Other investments involved mainly property, plant and equipment at Arvato, music catalogs at BMG, and film rights at RTL Group.
At the end of the financial year, Bertelsmann had 112,037 employees worldwide (previous year: 111,099). In 2014, there were 1,312 people (previous year: 1,304) serving in trainee positions in Bertelsmann companies in Germany.
The leading European entertainment network reported near-stable revenues in financial year 2014, with operating profit up slightly year on year. RTL Group’s revenues decreased by 0.3 percent to €5.8 billion (previous year: €5.8 billion). A recovery in most European advertising markets was offset by lower revenues in France, at the production arm Fremantle Media and at UFA Sports. Operating EBITDA increased during the reporting period by 0.8 percent to €1.3 billion (previous year: €1.3 billion). Lower contributions to earnings from RTL Radio in France, RTL Hungary and Fremantle Media were more than compensated for by significant growth in the German television business. The EBITDA margin was 23.0 percent during the reporting period (previous year: 22.7 percent). RTL Group employed 11,768 people at year-end (December 31, 2013: 11,491 employees).
In 2014, with the exception of Belgium, European TV advertising markets recorded stable to positive development. Germany in particular recorded distinct growth, which benefited RTL Group as well. Mediengruppe RTL Deutschland once again posted record revenues and earnings. In addition to increasing advertising revenues, growing platform revenues also contributed to this. The flagship channel RTL Television remained the clear market leader in the main target group, but recorded lower ratings than last year against the background of public service broadcasters’ coverage of the major events of the Olympics and the soccer World Cup.
In France, Groupe M6 revenues were down from the previous year due to declining advertising revenues and the sale of the e-commerce retailer Mistergooddeal, which was only partially compensated for by the acquisition of the “Best of TV” home shopping service. Operating earnings rose slightly. With the increasing fragmentation of the broadcasting landscape, the flagship channel M6 recorded a slight decrease in audience ratings and advertising market share and responded with a programming offensive.
RTL Nederland achieved slightly higher revenues and stable operating EBITDA. Here, too, although the broadcast of the World Cup by public service broadcasters led to lower ratings, RTL Nederland was able to maintain its considerable lead.
Fremantle Media’s revenues and operating earnings declined, especially due to lower income from the “American Idol” format and the cancellation of the “X Factor US” format. The company increased its investment in the production of original web content.
RTL Group strengthened its core business in 2014 by launching new channels (RTL Kockica in Croatia, Geo TV in Germany and RTL CBS Extreme HD in Southeast Asia), and acquiring the production company 495 Productions in the United States. The group expanded its digital business, in particular with the acquisition of StyleHaul, the leading multichannel network (MCN) for fashion, beauty and lifestyle on YouTube. The acquisition of a majority stake in SpotXchange, a globally leading and fast-growing technology platform for programmatic online video advertising, enables RTL Group to offer innovative services in the field of online ad sales. RTL Group’s video-on-demand services, multichannel networks, mobile applications and websites generated 36.4 billion online video views in the reporting period (previous year: 16.8 billion), reflecting strong growth.
Following the introduction of a new tax on advertising revenue in Hungary, there were impairment losses of in total €95 million on TV activities there. Special items are not included in operating EBITDA.
Penguin Random House
The world’s leading trade book publisher, Penguin Random House, delivered a strong performance in its first full year after the merger. Revenues increased by 25.2 percent to €3.3 billion (previous year: €2.7 billion), primarily due to portfolio effects. Operating EBITDA rose by 24.5 percent to €452 million (previous year: €363 million), driven by numerous major bestsellers, especially in the field of children’s books, as well as tie-ins to popular movies and TV series and the outstanding performance of its US division. Significant progress was made with the company’s integration in 2014: organizational structures, processes and functions were merged or reshaped without negatively impacting operations. The EBITDA margin was 13.6 percent (previous year: 13.7 percent). At year-end the publishing group, whose shares – except for the German business, which is wholly owned by Bertelsmann – are 53 percent owned by Bertelsmann and 47 percent by Pearson, employed 12,812 people (December 31, 2013: 11,838 employees).
During the reporting period, Penguin Random House acquired the Spanish- and Portugueselanguage publishing activities of Santillana Ediciones Generales, including the Brazilian publisher Objetiva, establishing the group as the market leader in Spanish-speaking Latin America.
The year’s biggest seller was John Green’s young-adult novel “The Fault in Our Stars,” which sold more than 10 million copies in print and e-book formats worldwide. Total worldwide sales of book tie-ins inspired by the Disney movie “Frozen” exceeded 17 million copies during the period. Movie tie-ins for “Gone Girl” by Gillian Flynn, “Unbroken” by Laura Hillenbrand and “The Lego Movie” and television tie-ins for “A Song of Ice and Fire” by George R. R. Martin and “Outlander” by Diana Gabaldon all sold millions of copies in multiple formats.
In the United States, Penguin Random House placed 502 print titles on the “New York Times” bestseller lists, 64 of them at number one. In addition to children’s and movie tie-in books, adult titles such as “Gray Mountain” by John Grisham, “The Invention of Wings” by Sue Monk Kidd, and “Make It Ahead” by Ina Garten were successful. Penguin Random House Canada publications also dominated the 2014 national bestseller lists. Penguin Random House UK experienced a solid year despite a difficult market environment: Its publishers placed 43 percent of the top ten titles on the “Sunday Times” bestseller lists. “Girl Online” by YouTube star Zoe Sugg, aka Zoella, was Britain’s fastest-selling debut novel ever. Other successful titles included “The Fault in Our Stars” by John Green and “Diary of a Wimpy Kid: The Long Haul” by Jeff Kinney.
Verlagsgruppe Random House in Germany recorded a stable year, placing 358 titles on the “Spiegel” bestseller lists. Top-selling titles were “Der Distelfink” by Donna Tartt and “Krähenmädchen” by Erik Axl Sund. The publishing group increased its e-book sales and audio downloads. Penguin Random House Grupo Editorial was able to more than offset weaknesses in the difficult book market in Spain with strong sales in Latin America. Grupo’s leading bestsellers were “El juego de Ripper” by Isabel Allende and “El umbral de la eternidad” by Ken Follett.
Penguin Random House expanded its digital business in all markets; its e-book portfolio grew to more than 100,000 titles in the reporting period. In 2014, the group’s publishers sold more than 100 million e-books worldwide.
Penguin Random House authors won many of the world’s most prestigious literary awards in 2014, including the Pulitzer Prize for Dan Fagin with “Toms River” (nonfiction), and the Man Booker Prize for Richard Flanagan’s “The Narrow Road to the Deep North.”
Gruner + Jahr
Revenues at Gruner + Jahr declined in the 2014 financial year, primarily due to deliberate divestments and falling ad and circulation revenues. Revenue was down by 13.3 percent to €1.7 billion (previous year: €2.0 billion). Operating EBITDA dropped 14.0 percent to €166 million (previous year: €193 million). Excluding the sold printing operations, operating EBITDA was largely stable despite increased investment in the company’s transformation to digital. The EBITDA margin was 9.5 percent (previous year: 9.6 percent). G+J employed 8,168 people at year-end (December 31, 2013: 10,556 employees). In November 2014, Bertelsmann’s acquisition of the remaining 25.1 percent of shares in Gruner + Jahr made it a wholly owned subsidiary of Bertelsmann SE & Co. KGaA. At the end of December, Gruner + Jahr changed its legal form to become a GmbH & Co. KG.
Against a backdrop of significant declines in advertising revenues, slightly lower circulation revenues, and the sale of the specialized publisher G+J Entertainment Media, G+J Germany recorded a fall in revenues. Continued heavy investment in the expansion of digital activities also impacted operating earnings. In August 2014, Gruner + Jahr’s management initiated a comprehensive efficiency program to reduce costs in Germany by €75 million in the medium term, adjust corporate structures and drive the digital transformation forward. The print portfolio was expanded with the launch of two new magazines, “Salon” and “Manual.” G+J developed numerous new e-mags and digital applications for its titles and successfully expanded its digital business. G+J Media Sales maintained its high market share. The digital marketing agent EMS and performance marketer Ligatus grew dynamically. Gruner + Jahr strengthened its marketing expertise with the acquisition of Veeseo and Trnd. DPV was strategically realigned and moved closer to the G+J brands. At the same time, digital sales were intensively expanded.
In France, Prisma Media improved its leading position among the country’s major magazine publishers despite a decline in advertising and circulation revenues in a shrinking market. Revenues remained stable, but earnings were down. In the digital domain, Prisma Media recorded significant growth and made a considerable contribution to earnings. Its strong market position was expanded with a stake in the video marketer Advideum. In Austria, Verlagsgruppe News’ advertising and sales revenues remained under strong pressure during the reporting year. In June 2014, there was a change in leadership at the publishing group. G+J’s withdrawal from the Eastern European markets was completed with the sale of shareholdings in Adria Media Zagreb in Croatia.
In Spain, the business saw a slight recovery. Gruner + Jahr’s operations in the Netherlands were stable, while its businesses in China declined significantly against a backdrop of decreasing advertising revenues. G+J pulled out of India, due to a lack of strategic prospects, by selling all of its shares in Networkplay Media, Seventynine and Maxposure. Dresdner Druck- und Verlagshaus achieved slight organic increases in revenues and earnings by expanding its additional regional offerings. Motor Presse Stuttgart recorded a slight decline in revenues, but thanks to cost-cutting measures its earnings were higher. The company grew its digital activities.
During the reporting period, G+J sold Brown Printing in the United States as part of its transformation.
In 2014, as in past years, numerous G+J journalists and authors won awards for their work.
The international technology services provider Arvato recorded rising revenues and a decline in operating result in the 2014 financial year. Revenues grew both through acquisitions and organically, increasing by a total of 6.2 percent to €4.7 billion (previous year: €4.4 billion). Due to start-up losses for new businesses and innovations and increasing pressure on the margins of some businesses, operating EBITDA declined by 3.3 percent to €384 million (previous year: €397 million). The EBITDA margin was 8.2 percent compared to 9.0 percent in the previous year. Arvato employed 70,653 people at year-end (December 31, 2013: 66,303).
At Arvato the financial year was marked by, among other things, the introduction of a new organizational structure designed to strengthen innovation, effectively increase the company’s growth momentum and promote global collaboration. The businesses have since been organized into Solution Groups and by country.
During the reporting period, Arvato registered significant revenue growth in the Supply Chain Management Solution Group in particular, where the company was successful with innovative e-commerce and SCM solutions for international customers in the Internet, hightech, healthcare and automobile sectors. The acquisition of the e-commerce service provider Netrada contributed significantly to this increase in revenues. The acquisition turned Arvato into the leading European provider of integrated e-commerce services in the fashion and lifestyle sectors.
In the Financial Solutions segment, Arvato further advanced the internationalization of its businesses and strengthened its position as one of the leading providers in the fast-growing business-information and financial-services market. In particular, the operations in northern Europe were expanded and gained market share. Arvato strengthened its services in the field of risk management solutions with the acquisition of the Dutch financial-services company AfterPay.
During the reporting period, revenues from the Customer Relationship Management Solution Group showed a positive development in Germany, UK, Spain and North America, were stable in China and declined in France. In Asia and Africa, Arvato established or expanded new offshore sites for providing customer-services solutions to international customers. The German service-center network was strengthened by the acquisition of several locations with more than 1,000 employees. In the UK, losses were incurred in connection with a new contract in the public sector.
Demand for IT solutions related to application development and systems integration continued unbroken in 2014. Accordingly, Arvato was further able to increase its revenues from IT solutions, gaining new major customers such as Rheinmetall and McKessen. This initially involved high set-up costs, which impacted earnings in this business segment. Arvato’s integrated print businesses remained stable overall. Storage media replication revenues declined as expected; in Spain, Arvato discontinued its replication operations at the beginning of the year.
In Europe, Arvato’s businesses showed varying performance. While revenue performance was good in Germany, Scandinavia, the Netherlands and Ireland and satisfactory in Spain, the UK and Poland, the service businesses in France were unable to match the previous year’s level. Revenues in the North American market declined due to portfolio adjustments. In key growth markets such as Turkey and India, the services businesses were expanded and new customers were acquired. In China, Arvato’s development was almost stable. Arvato won prestigious awards in various countries around the world for its bespoke and innovative customer solutions.
The gravure and international offset printing activities pooled in Bertelsmann’s Be Printers division recorded declining revenues and operating results in financial year 2014. Reasons included continuing overcapacity and the resulting price erosion in the European gravureprinting market, as well as the sale of business units. The technological shift toward more offset and digital printing and shrinking print runs in the magazine sector and printed advertising also impacted the revenues of the European businesses. The performance of Be Printers’ book-printing operations in the United States was stable. Be Printers’ revenues were down by 11.2 percent in 2014 to €1.0 billion (previous year: €1.1 billion). Operating EBITDA decreased by 30.4 percent to €64 million (previous year: €92 million). The EBITDA margin was 6.4 percent, after 8.2 percent in the previous year. Be Printers employed 4,108 people at year-end (December 31, 2013: 6,201 employees).
In 2014, Be Printers focused on boosting competitiveness with regard to quality and cost in order to maintain its position in declining markets. Closing the Prinovis printing plant in Itzehoe and focusing on the company’s geographic core markets contributed to this, as did expanding the product range – for example, the hybrid offer of gravure and offset at Prinovis. By making this investment at its Dresden location, Prinovis expanded the site’s product range toward offering small print runs, additional formats and shorter timelines. Production at Itzehoe was discontinued as planned on April 30, 2014. In Ahrensburg, the staff adopted a “Future Package” that safeguards employment and lowers costs. In the United States, Be Printers expanded its market access with innovative print products for the home entertainment, cosmetics, health and confectionery sectors. Be Printers sold its printing plants and calendar business in Italy as well as its shareholding in a Colombian printing plant.
During the reporting period, Be Printers renewed its contracts with major European customers such as the Otto Group, the media groups Klambt, Axel Springer and Funke and G+J España. Be Printers’ US printers secured the continued utilization of its capacity in book printing with the conclusion of a new five-year contract with the trade book publisher Penguin Random House.
Be Printers carried out a substantial write-down of Prinovis during the financial year. Special items are not included in operating EBITDA.
Corporate Investments/Corporate Center
The Corporate Investments division, which comprises all of Bertelsmann’s operational activities at Group level, reported lower revenues in 2014 but, at the same time, a strong increase in operating result. Revenues fell by 6.6 percent to €510 million (previous year: €546 million). Dynamic growth in the music-rights subsidiary BMG partly compensated for declines from the scheduled downscaling of the club and direct-marketing business. Operating EBITDA soared by 120 percent to €44 million (previous year: €20 million) thanks to BMG’s positive performance. The EBITDA margin was 8.6 percent after 3.7 percent in the previous year. At year-end, 3,908 employees worked for Corporate Investments (December 31, 2013: 4,146 employees).
In 2014 Bertelsmann made significant progress in developing the new education line of business. In November, the Group acquired the US company Relias Learning, a fastgrowing, leading e-learning provider in the healthcare sector. In addition, Bertelsmann acquired a minority stake in the US education provider Udacity. During the reporting period, the University Ventures I and II funds, in which Bertelsmann is the anchor investor, made further investments in high-growth companies in the education sector, including the Ponce School of Medicine in Puerto Rico and the innovative US startup Galvanize.
In 2014 the music-rights subsidiary BMG grew both organically and through the targeted acquisition of catalogs and companies, including the music publisher Talpa Music in the Netherlands, the labels Vagrant Records in the US and Infectious Music in the UK and the Skint/Loaded, Hal David and Montana music-rights catalogs, as well as the marketing specialist Union Square Music. BMG signed new contracts with well-known artists and bands, including the Beatsteaks, Kraftklub, Casper and BossHoss in Germany; Dave Stewart, The Strokes, The Smashing Pumpkins and Faith Evans in the US; and Simply Red, Simple Minds, Sigma, M.I.A. and the composer Wayne Hector in the UK. In Germany, BMG ended the year as the country’s most successful music publisher, with a cumulative 18 percent share of the singles charts. The company’s artists and writers won numerous Grammy and Echo Awards. At the beginning of 2014, BMG opened an office in Beijing.
During the reporting period, the Bertelsmann Digital Media Investments (BDMI) and Bertelsmann Asia Investments (BAI) funds in China, Bertelsmann India Investments (BII) and the Corporate Center in Brazil expanded their investment portfolios to a total of 92 investments. BAI made new investments in 11 companies. New investments in India included online marketplaces for furniture and real estate. In Brazil, Bertelsmann invested in an education fund focused on technology. BDMI managed a successful exit with the sale of the multichannel network StyleHaul to RTL Group.
The club and direct-marketing businesses were further downscaled or closed during the reporting period. Bertelsmann announced the closure of Der Club Bertelsmann and all its remaining branches in Germany by the end of 2015. The successful Tolino e-reader, comarketed by Der Club, will be continued and developed further. In Spain, Bertelsmann’s remaining 50 percent share in Círculo de Lectores was sold to the former joint-venture partner Planeta. The sale of the club business in the Czech Republic and Slovakia to a Czech investor, agreed upon last year, was completed in March 2014. The Ukrainian club activities came under strong pressure against the background of the conflict in eastern Ukraine. The direct-sales organization Inmediaone was discontinued on June 30, 2014.
The Corporate Center department, which is comprised of all of the Group’s Corporate Centers around the world, supported key transactions during the year. It also managed the systematic continuation of the multiyear “Operational Excellence” program, which aims to optimize business support processes in HR, finance/accounting, IT and procurement. The focus of its work also included the organization of a Management Meeting and a “Creativity Conference” with renowned artists and speakers in London. The Corporate Center supported the establishment of a new Board seat for HR-related matters focused on talent management and management development, to which Immanuel Hermreck was appointed at the turn of the year.
News and Information: 10 February 2015
Oprah’s Book Club 2.0 announced today its newest selection, RUBY by Cynthia Bond (Hogarth). This debut novel, first published in hardcover last spring, will be issued in a special paperback edition bearing the OBC 2.0 logo on February 10. The cross-platform book club’s fourth selection kicks off with Winfrey’s interview with Bond in the March issue of O, The Oprah Magazine (on sale nationwide February 17). Additionally, Harpo Films announced today that it has optioned the film and television rights to RUBY.expand
Bond draws upon her own experiences and the heartbreaking tales she’s heard through the years working with homeless and at-risk youth, to create the unforgettable story of Ruby Bell, a beautiful girl born from tragedy who suffers horrors and fights against her personal demons in Liberty Township, TX.
“Nothing comes close to the experience of reading this book. It’s a dark moving story, harrowing and heartbreaking, yet filled with moments of love pure and strong,” said Oprah Winfrey. “When I found out that Cynthia Bond is 53 years old and hasn’t written a book before, I couldn’t fathom it. RUBY is a vivid, searing novel that penetrates straight through the page and into the reader’s heart.”
Click here for a message from Oprah: http://www.oprah.com/obcvideo2015
RUBY was a Barnes & Noble Discover Great New Writers selection and was chosen as an Indie Next Pick by independent booksellers throughout the U.S. when it was released in 2014. ”There are dreams that you keep hidden—secret hopes locked away. Learning that my novel had been chosen to be in Oprah’s Book Club burst open that door—I just wept. I worked for over ten years, writing, editing, rethinking, and creating what would become three books. RUBY is the first. Ms. Winfrey has changed the course of my life—as a writer, as a mom, as an advocate for children’s rights and I will be forever grateful,” said author Cynthia Bond.
In addition to being available in bookstores nationwide, special Oprah’s Book Club 2.0 digital editions of RUBY, with exclusive content including a reader’s guide and Winfrey’s notes on her favorite passages, will be available for Amazon Kindle, NOOK® by Barnes & Noble, on the iBookstore and everywhere e-books are sold.
Throughout February and March, readers can further engage online at the book club hub (oprah.com/bookclub) and through a variety of digital and social media platforms:
- Oprah.com will feature a reading guide as well as Winfrey’s personal thoughts about her favorite passages from the book.
- Readers will also have the opportunity to join the conversation via Twitter, Facebook and Instagram. A stream of reader tweets (#OprahsBookClub) and Instagram photos from around the world will provide a snapshot of what participants are thinking, feeling and sharing as they read the book together.
- The official Oprah’s Book Club 2.0 group on Goodreads, one of the largest websites for book lovers with 30 million members, will feature content and encourage discussions about the new book club selection. (Goodreads.com/OprahsBookClub).
About Cynthia Bond
CYNTHIA BOND, a PEN Rosenthal Fellow, has taught writing to homeless and at-risk youth throughout Los Angeles for more than fifteen years. Her novel, RUBY, was a Barnes & Noble Discover Great New Writers selection, and was chosen as an Indie Next Pick by independent booksellers throughout the U.S. O, The Oprah Magazine says, “Cynthia Bond proves to be a powerful literary force, a writer whose unflinching yet lyrical prose is reminiscent of Toni Morrison’s.” Bond attended Northwestern University’s Medill School of Journalism, then moved to New York and attended the American Academy of Dramatic Arts. She founded the Blackbird Writing Collective in 2011. At present, Bond teaches therapeutic writing at Paradigm Malibu Adolescent Treatment Center. A native of East Texas, she lives in Los Angeles with her daughter.
About Oprah’s Book Club 2.0
In June 2012, Oprah Winfrey reintroduced her popular book club as an interactive, multi-platform reading club that harnesses the power of social media, bringing passionate readers together to discuss inspiring stories. After being selected as the club’s inaugural book, Wild by Cheryl Strayed (Knopf) returned to the top of the New York Times Best Sellers list and spent six consecutive weeks at #1. It was also made into a motion picture starring Reese Witherspoon. The club’s second pick, The Twelve Tribes of Hattie by Ayana Mathis, was on the New York Times Best Sellers list for 10 weeks. The third book selected, The Invention of Wings by Sue Monk Kidd, made its debut at #1 on the New York Times Best Sellers list and was Amazon’s bestselling book of 2014. RUBY by Cynthia Bond is the book club’s fourth selection.
About Harpo Films
Harpo Films, Inc. produces acclaimed feature films and scripted television programming. Recent features include the Academy Award nominated ”Selma” starring David Oyelowo and Golden Globe nominated ”The Hundred-Foot Journey” starring Helen Mirren.
About O, The Oprah Magazine
O, The Oprah Magazine (oprah.com/omagazine) encourages confident, intelligent women to reach for their dreams, express their individual style and live their best lives. With an emphasis on personal growth, the magazine informs and inspires, addressing every aspect of a woman’s life and deeply connecting with more than 15 million readers every month (MRI, 2011 Doublebase). In May 2012, O, The Oprah Magazine won the publishing industry’s highest honor, the American Society of Magazine Editors (ASME) award for General Excellence. O, The Oprah Magazine is available on Zinio, Barnes & Noble Nook, Amazon Kindle and Flipboard, and its namesake iPad app is available on the App store at www.itunes.com/appstore. Follow O, The Oprah Magazine on Twitter @O_Magazine.
O, The Oprah Magazine is a co-venture between Harpo Print, LLC and Hearst Magazines, a unit of Hearst Corporation, one of the nation’s largest diversified media and information companies. With 21 titles in the U.S., Hearst is the leading publisher of monthly magazines in terms of total paid circulation (AAM 1H 2014) and reaches 80 million adults (Fall 2014 MRI gfk).
Hogarth is an imprint of The Crown Publishing Group, a division of Penguin Random House, LLC. Penguin Random House (http://global.penguinrandomhouse.com/) is the world’s most global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, India and South Africa, and Penguin’s trade publishing activity in Asia and Brazil; DK worldwide; and Penguin Random House Grupo Editorial’s Spanish-language companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.
News and Information: 4 February 2015
The highest annual awards in children’s and audiobook publishing were announced on February 2 at the American Library Association (ALA) Midwinter meeting in Chicago, and numerous Penguin Books for Young Readers and Random House Children’s titles, as well as Penguin Random House Audio productions, have been recognized as 2014’s best:expand
Read more about our ALA winners:BROWN GIRL DREAMING by Jacqueline Woodson (Nancy Paulsen Books; Penguin Audio/Books on Tape) is awarded a Newbery Honor; the Coretta Scott King Author Award; and a Robert F. Sibert Informational Book Honor.
THE NOISY PAINT BOX: The Colors and Sounds of Kandinsky’s Abstract Art by Barb Rosenstock, Illustrated by Mary GrandPré (Alfred A. Knopf Books for Young Readers) receives a Randolph Caldecott Honor.
I’LL GIVE YOU THE SUN by Jandy Nelson (Dial Books for Young Readers) is the recipient of the Michael L. Printz Award.
GRASSHOPPER JUNGLE by Andrew Smith (Dutton Children’s Books, Penguin Audio) receives a Michael L. Printz Honor.
AND WE STAY by Jenny Hubbard (Delacorte Press, Listening Library) also receives a Michael L. Printz Honor.
FIREBIRD by Misty Copeland, Illustrated by Christopher Myers (G.P. Putnam’s Sons Books for Young Readers) is bestowed a Coretta Scott King Illustrator Award.
HOW I DISCOVERED POETRY by Marilyn Nelson, Illustrated by Hadley Hooper (Dial Books for Young Reader) receives a Coretta Scott King Author Honor.
THE FAMILY ROMANOV: Murder, Rebellion, and the Fall of Imperial Russia by Candace Fleming (Schwartz & Wade Books, Listening Library) receives a Robert F. Sibert Informational Book Honor, and is also a Finalist for the 2015 YALSA Award for Excellence in Nonfiction for Young Adults.
LITTLE ROJA RIDING HOOD by Susan Middleton Elya, Illustrated by Susan Guevara (G.P. Putnam’s Sons Books for Young Readers) receives a Pura Belpre Illustrator Honor.
PORTRAITS OF HISPANIC AMERICAN HEROES by Juan Felipe Herrera, Illustrated by Raul Colon (Dial Books for Young Readers) receives a Pura Belpre Author Honor.
POPULAR: Vintage Wisdom for a Modern Geek by Maya Van Wagenen (Dutton Children’s Books, Penguin Audio) receives the YALSA Award for Excellence in Nonfiction for Young Adults.
Alex Awards For best adult books that appeal to teen audiences
BINGO’S RUN by James A. Levine (Spiegel & Grau)
EVERYTHING I NEVER TOLD YOU by Celeste Ng (Penguin Press)
THE MARTIAN by Andy Weir (Crown hc, Broadway Books tp)
And, on the Audio side:
GABI, A GIRL IN PIECES by Isabel Quintero, read by Kyla Garcia (Listening Library) is the William C. Morris Award winner.
THE SCAR BOYS by Len Valhos, read by Lincoln Hoppe (Listening Library) is a William C. Morris Award finalist.
THE PORT CHICAGO 50: Disaster, Mutiny, and the Fight for Civil Rights by Steve Sheinkin, read by Dominic Hoffman (Listening Library) is a YALSA Award for Excellence in Nonfiction for Young Adults finalist.
WHEN I WAS THE GREATEST by Jason Reynolds and narrated by J.B. Adkins (Listening Library) has won the Coretta Scott King/John Septoe New Talent Author Award.
RUSA Listen List
STATION ELEVEN by Emily St. John Mandel, read by Kirsten Potter (Random House Audio, Knopf)
THE INVENTION OF WINGS by Sue Monk Kidd, read Jenna Lamia, Adepero Oduye, Sue Monk Kidd (Penguin Audio, Viking)
News and Information: 4 February 2015
Following the announcements of their major children’s and audio publishing-achievement awards and recognitions, the ALA has presented their selections for their 2015 Notable Books List of adult titles. Penguin Random House authors are proudly represented:expand
THE BONE CLOCKS: A Novel by David Mitchell, (Random House)
THE CHILDREN ACT by Ian McEwan, (Nan A Talese/Doubleday)
THE CRANE WIFE by Patrick Ness, (Penguin Books, Penguin Audio)
THE NARROW ROAD TO THE DEEP NORTH by Richard Flanagan, (Alfred A. Knopf)
ON SUCH A FULL SEA by Chang-Rae Lee, (Riverhead, Penguin Audio)
STATION ELEVEN: A Novel by Emily St. John Mandel, (Alfred A. Knopf)
TIGERMAN by Nick Harkaway, (Alfred A. Knopf)
IN THE KINGDOM OF ICE by Hampton Sides, (Doubleday, Random House Audio)
JUST MERCY by Bryan Stephenson, (Spiegel & Grau, Random House Audio)
THE MOST DANGEROUS BOOK by Kevin Birmingham, (Penguin Press, Penguin Audio)
THE SECRET HISTORY OF WONDER WOMAN by Jill Lepore, (Knopf, Random House Audio)
GABRIEL: A Poem, by Edward Hirsch, (Knopf)
Also, RUBY by Cynthia Bond (Hogarth, Random House Audio) and BOOK OF HOURS by Kevin Young (Knopf) are selected as a Fiction Honor Book and the Poetry winner respectively by the Black Caucus of ALA Literary Awards.
Announcements: 5 December 2014
Press Release: 24 October 2014Today’s third-quarter trading statement from Pearson includes a positive, brief report on the Penguin Random House performance during the period under review. Click here to read the complete Pearson presentation.
News and Information: 1 October 2014
Penguin Random House today completed its acquisition of Editora Objetiva, the highly regarded Brazilian trade publisher. In March, Penguin Random House agreed to purchase the trade book businesses of Santillana Ediciones Generales in Spain, Portugal, and Latin America. The non-Brazilian transactions closed on July 1. Luiz Schwarcz, CEO of Penguin Random House’s Brazilian sister publisher, Companhia das Letras, also will oversee Objetiva. Roberto Feith continues as Objetiva’s General Director. The Brazilian and international roster of distinguished authors published by Objetiva’s imprints include Jon Lee Anderson, João Cabral de Melo Neto, Daniel Goleman, Daniel Kahneman, Stephen King, Haruki Murakami, Vladmir Nabokov, João Ubaldo Ribeiro, Mario Vargas Llosa, Luis Fernando Verissimo, and Carlos Ruiz Zafón.
News and Information: 5 September 2014
Press Release: 29 August 2014
(Gütersloh, August 29, 2014) – The international media and services company Bertelsmann made significant progress in implementing its growth strategy in the first half of 2014, increasing both its revenues and Operating EBITDA.
- Strategic transactions boost growth
- Operating EBITDA rises to €1,015 million in first half of 2014
- Net income at €254 million
- Progress on all four strategic directions
Consolidated revenues from continuing operations increased by almost seven percent to €7.8 billion euros, the highest level in seven years (H1 2013: €7.4 billion). This revenue growth was driven, in particular, by the strategic transactions of the past 18 months. They include the combination of Penguin and Random House, Arvato’s acquisition of the financial services company Gothia and the e-commerce service provider Netrada, and the acquisition of full ownership in the BMG music rights company. Operating EBITDA, which included startup losses for new businesses and negative foreign exchange effects, was €1,015 million, slightly above the high level of the previous year (H1 2013: €1,011 million). The German and Dutch TV operations, the book publishing business, the music rights business and some of Arvato’s service businesses all grew their results. Operating EBITDA was negatively impacted by the performance of structurally declining businesses, the magazine business, and the weak market situation in France, where the operating EBITDA of Bertelsmann’s businesses declined by €33 million year-on-year. The EBITDA margin was 12.9 percent (H1 2013: 13.7 percent). At €254 million, the Group’s first-half net income was below the high level of the previous year (H1 2013: €419 million), which was influenced by positive special items. Earnings during this reporting period were negatively impacted by an €88 million impairment on RTL Group’s TV activities in Hungary, where the parliament recently approved a special tax on advertising.
Thomas Rabe, Chairman and CEO of Bertelsmann, said: “The first six months of 2014 went satisfactorily for Bertelsmann. The significant increase in revenues is a testament to the effectiveness of our strategy, and last year’s big investments are paying off. In the past few months, we have made significant progress in our four strategic directions: strengthening the core, digital transformation, expanding growth platforms, and our businesses in growth regions. We are well on our way to making Bertelsmann a faster-growing, more digital and more international company long-term. In the months and years ahead, we will focus on expanding our Education business, which will become a third mainstay of revenues alongside Media and Services.”
During the reporting period Bertelsmann made significant progress on all of the company’s strategic directions:
Strengthening the Core
In the past few months, Bertelsmann has systematically invested in strengthening its core businesses. For example, RTL Group expanded its family of channels in Germany, Croatia and South-East Asia; Penguin Random House acquired the Spanish- and Portuguese-language trade publisher Santillana Ediciones Generales. Meanwhile, structurally declining businesses were further downscaled or sold, as was the case with Brown Printing in the U.S.; Bertelsmann announced its plans to withdraw from the club business both in Germany and in Spain.
Bertelsmann significantly grew its digital businesses, organically and through acquisitions. For example, in the first half of 2014, RTL Group generated a total of 15.7 billion online video views – a year-on-year increase of 226 percent. In July, the group also secured a majority stake in SpotXchange, a marketer of online videos. Penguin Random House expanded its e-book portfolio to over 80,000 titles, extending its market leadership; Gruner + Jahr further strengthened its market position in digital marketing by acquiring the French online video marketer Advideum. Arvato continued to grow as a service provider for leading IT, high-tech, and e-commerce companies.
Expansion of growth platforms
During the reporting period, RTL Group acquired a majority stake in the TV production company 495 Productions. Arvato became a leading European service provider of e-commerce services to the fashion and lifestyle sector, following its acquisition of Netrada. BMG purchased the music publisher Talpa, as well as the Montana and Hal David rights catalogs. Bertelsmann also advanced the expansion of its education business as a strategic investor in the University Ventures II fund with a commitment to invest hundreds of millions.
Expansion in growth regions
Bertelsmann expanded in all of its three growth regions. The Bertelsmann Asia Investments fund increased its portfolio in China, achieving significant gains, for example, from its participation in Mushroom Street, a leading online shopping community for women. BMG entered the Chinese market. In India, Bertelsmann invested in the e-commerce platform Pepperfry, as well as in a digital fund. In addition, Bertelsmann teamed up with a Brazilian investment firm to found a new venture capital fund focusing on technologies in the Brazilian education sector.
Positive contributions during the reporting period came primarily from Mediengruppe RTL Deutschland, which achieved record results, and from RTL Nederland. Meanwhile, RTL Group’s results in France were negatively impacted by a weak advertising market. Penguin Random House increased its revenues to nearly €1.5 billion following its combination making it the world's largest trade book publisher on 1 July 2013, and placed numerous titles prominently on the international bestseller lists. Gruner + Jahr continued its strategic transformation from traditional magazine publisher to creative house of content, but recorded lower revenues than in the same period last year due to the general downtrend in the magazine market, as well as portfolio adjustments. However, Gruner + Jahr’s revenues from digital activities increased in all countries. Growth drivers at Arvato included services for international customers in the Internet, high-tech, healthcare and automotive industries, and financial services. While revenues and operating EBITDA at Be Printers, the division that unites Bertelsmann’s gravure and international offset printers, declined due to the difficult market environment, revenues in the Corporate Investments division grew through business growth and the full consolidation of the music rights company BMG for the entire reporting period.
Judith Hartmann, Chief Financial Officer of Bertelsmann, added: “Bertelsmann is in excellent financial shape and operates at a high level of profitability. Our guidance for the full year is a significant increase in revenues and a stable operating EBITDA at a high level. Our net income will remain slightly below the previous year's strong level, reflecting the impairment of our Hungarian TV activities. We will continue to invest significantly in implementing our strategy, always bearing in mind our clear investment criteria.”
As of June 30, 2014, Bertelsmann had 111,761 employees worldwide (December 31, 2013: 111,099).
- RTL Group launches three new TV channels: RTL Kockica in Croatia, Geo Television in Germany and RTL CBS Extreme HD in Southeast Asia.
- Fremantle Media buys 75 percent of shares in the reality-TV producer 495 Productions, expanding its presence in the US cable broadcasting market.
- Fremantle Media and Vice Media launch “Munchies,” a new multichannel platform for digital content related to food and nutrition.
The leading European entertainment network generated revenues of €2.7 billion in the first half of 2014 (H1 2013: €2.8 billion). This slight decline in revenues is primarily due to difficult market conditions in France and the decline in revenues at Fremantle Media. However, operations in the Netherlands in particular showed positive developments. RTL Group’s operating EBITDA totaled €612 million (H1 2013: €631 million) and was particularly affected by the marketrelated drop in earnings at Groupe M6 and RTL Radio in France, and by Fremantle Media. However, Mediengruppe RTL Deutschland achieved record earnings and RTL Nederland was able to significantly increase operating profits. Due to the introduction of a new tax on advertising revenue by the Hungarian parliament, an impairment of €-88 million was made to the TV operations in Hungary. As a special item, this has no impact on RTL Group’s operating EBITDA. RTL Group was largely able to maintain its leading audience positions in its core territories, even though the soccer World Cup in June was broadcast by competitors. Mediengruppe RTL Deutschland’s audience share in its main target group was slightly down year on year to 29.2 percent (H1 2013: 31.2 percent). However, RTL Television was still the clear number one among 14- to 59-year-old audiences. RTL Nitro, the channel launched in 2012, almost doubled its audience share in the first half of 2014 to 1.5 percent (H1 2013: 0.8 percent). In France, the Groupe M6 family of channels registered a slight decrease in audience share. The new channel 6ter, launched in December 2012, developed positively. The audience share of the Dutch family of channels around RTL 4 was also slightly below the level of the first half of 2013. In the digital domain, RTL Group continued to show dynamic growth thanks to its online platforms, mobile applications and YouTube activities. 15.7 billion online video views were generated in the first six months of the year – a 226 percent increase compared to the first half of 2013. Online video advertising revenues also increased significantly during the reporting period.
Penguin Random House
- John Green’s #1 bestselling “The Fault in Our Stars” sells more than 5.7 million copies published by Penguin Random House imprints, January–June.
- Penguin Random House’s publishing presence in Spain and Latin America greatly expands with the acquisition of Santillana Ediciones Generales’s trade publishers on July 1, 2014.
- Penguin Random House’s new corporate logo and brand-identity system, featuring the imprint logos, is introduced worldwide.
The world’s largest trade publishing group’s results for the first half of 2014 were driven by strong bestseller performances, especially from its children’s divisions worldwide. Achievement of key milestones for the integration of the Penguin and Random House businesses continues on track in all territories. Bertelsmann owns 53 percent of shares in Penguin Random House, which was established by merger on July 1, 2013; Pearson owns 47 percent. The group generated revenues of €1.5 billion in the reporting period, including the publishing businesses of Random House in Germany, which are fully owned by Bertelsmann, thus representing a 60 percent increase over Random House’s revenues in the first half of 2013 (€915 million). Operating EBITDA was €159 million (H1 2013: €131 million). In the United States, Penguin Random House placed 430 titles on the “New York Times” bestseller lists in the first six months of 2014. The half-year top-selling title was John Green’s young adult novel “The Fault in Our Stars,” which sold more than four million copies in print and e-book formats in North America. Other children’s and young adult books in high demand include the multimillion-copy-selling tie-ins with the movie “Frozen,” “Wonder” by R. J. Palacio and “The Book Thief” by Markus Zusak. Among the largest-selling adult titles were “The Invention of Wings” by Sue Monk Kidd, “Duty” by Robert Gates and the paperback editions of Dan Brown’s “Inferno” and “Gone Girl” by Gillian Flynn. In the UK, Penguin Random House commanded 45 percent of the “Sunday Times” bestseller list. “The Fault in Our Stars” was also this division’s biggest seller, with Jeff Kinney’s “Diary of a Wimpy Kid: Hard Luck” a major success as well. At Penguin Random House Grupo Editorial, positive results in the Latin American territories offset the impact of the ongoing challenging market conditions in Spain. In March, Penguin Random House reached an agreement to acquire the Spanish- and Portuguese-language trade publishing companies of Santillana Ediciones Generales, including the Brazilian publisher Objetiva. The transaction involving the Spanish-language businesses was completed on July 1, 2014. Verlagsgruppe Random House in Germany grew its sales of e-books and audiobooks, placing 231 titles on the “Der Spiegel” bestseller lists. Penguin Random House invested across its divisions in extending the reach of its digital content and expanding its digital marketing, as well as introducing new web verticals and apps. Several of the group’s authors won major literary awards, including Dan Fagin, who won the US Pulitzer Prize for General Nonfiction for “Toms River.”
Gruner + Jahr
- G+J strengthens its position in ad marketing by acquiring Veeseo and a stake in Trnd, becoming Europe’s biggest provider of content recommendations.
- In France, Prisma Media buys a stake in the country’s leading video marketer, Advideum, at the end of 2013, further enhancing its market position in digital marketing.
- G+J Germany celebrates the anniversary of the printed editions of “Brigitte” (60 years) and “Gala” (20 years), and expands its brands in digital to about 30 emags and more than 50 websites and apps.
In the first half of 2014, Gruner + Jahr continued its strategic transformation from a traditional magazine publisher to a creative house of content. Driven by the decline of the magazine business and portfolio adjustments, G+J’s revenues fell to €908 million during the reporting period (H1 2013: €1.0 billion). At the same time, Gruner + Jahr’s revenues from digital activities increased across all countries. As a result of the overall decline in revenues, operating EBITDA fell to €77 million (H1 2013: €108 million). At G+J Germany, the decline in the magazine business had a significant impact on revenues and earnings. G+J countered this decline with a product campaign based on the publisher’s leading brands such as “Brigitte” and “Gala” and with the launch of new titles (e.g., “Flow”) as well as numerous special issues. The company continued the expansion of its digital business. G+J strengthened its position in the advertising market through acquisitions such as Veeseo and Trnd. Overall, the international business showed a downturn. Activities in Austria and China generated revenues and earnings below the levels of the previous year. Meanwhile, despite weaker revenues, G+J Spain increased its earnings, thanks to structural measures taken in 2013. G+J France strengthened its position in digital marketing by acquiring France’s leading video marketer Advideum shortly before the end of 2013 and kept its revenues largely stable. Dresdner Druck- und Verlagshaus was able to slightly increase its revenues and earnings year on year and on a like-for-like basis.
- Arvato’s acquisition of Netrada turns it into one of the leading European providers of integrated e-commerce services.
- Arvato acquires five more service centers in Germany.
- Expansion of services businesses and successful new customer recruitment in Turkey, Poland and India.
The international services provider Arvato grew in the first half of 2014, both organically and through acquisitions, and increased its revenues in the reporting period by 5.5 percent to €2.2 billion (H1 2013: €2.1 billion). As a result of the revenue growth, operating EBITDA increased slightly to €162 million from €160 million in the same period last year; the earnings contributions of the acquisitions compensated for declines in earnings in individual businesses. During the reporting period, Arvato grew its revenues and earnings in areas including services for international customers in the Internet, high-tech, healthcare and automotive sectors. With the acquisition of Netrada, completed on February 1, 2014, Arvato became a leading European provider of e-commerce services, strengthening its position in the field of supply-chain management. The financial services business, which benefited from the takeover of Gothia Financial Group in the previous year, also contributed to Arvato’s growth. In contrast, revenues from storage media replication continued to decline, as expected. Arvato improved its position in key growth markets and industries in the first half of the year, expanding the services businesses in India, Turkey and Poland and acquiring new customers. Arvato also consolidated its leading position in the European market for customer relationship management by taking over five service centers.
- Upcoming contract renewal with Penguin Random House increases volumes and boosts capacity utilization at Be Printers USA.
- Production of a major order for an Italian client on the occasion of the soccer World Cup.
- Adoption of a “Future Package” by the workforce safeguards jobs and significantly lowers costs at the Ahrensburg site.
The gravure printers and international offset printing plants, grouped into the Be Printers division, generated first-half revenues of €482 million in a market environment characterized by declining print runs and surplus capacity (H1 2013: €512 million). The division’s operating EBITDA decreased to €25 million (H1 2013: €29 million). In Germany and the UK, the gravure division Prinovis was able to secure printing contracts for several major magazine packages for several years. However, lower overall print volumes caused a slight decline in revenues and earnings at Prinovis. Production at the Itzehoe plant was terminated on April 30, 2014, as planned. In Ahrensburg, the workforce adopted a “Future Package.” Be Printers Americas agreed on a multiyear contract extension with Penguin Random House, which will increase capacity utilization at the company. Continued cost discipline served to enhance results. Due to macroeconomic developments in Italy and Spain, Be Printers Southern Europe recorded lower order volumes and further price declines.
Corporate Investments/Corporate Center
- BMG continues its expansionist course by taking over the music rights companies and catalogs Talpa Music, Montana and Hal David and initiates its market entry in China.
- Education business is expanded through commitment to invest an amount in the hundreds of millions in a second University Ventures fund.
- Digital activities in the growth regions China, India and Brazil strengthened through fund participations and direct investments.
In the first half of 2014, Corporate Investments reported an increase in revenues to €254 million (H1 2013: €235 million) and operating EBITDA of €16 million (H1 2013: €-10 million). In particular, the growing business and full consolidation of the music rights company BMG for the entire half-year – BMG has been wholly owned by Bertelsmann since March 30, 2013 – had a positive effect. By contrast, the club and direct-marketing businesses declined as planned. BMG continued its growth course during the reporting period, acquiring the music rights companies or catalogs of Talpa Music, Montana and Hal David, with numerous classics in their portfolios. At the same time, BMG signed new contracts with several wellknown artists, including the Smashing Pumpkins, The Strokes, George Ezra and the Beatsteaks. The company was Germany’s most successful music publisher in the first half of 2014 – almost 21 percent of all singles in the German charts were from BMG. In addition, BMG entered the Chinese market. In the field of education, Bertelsmann continued to drive forward the preparations for the expansion of this business, and committed to investing a sum in the triple-digit millions in a second University Ventures fund. In Brazil, Bertelsmann teamed up with a partner to establish a fund for investments in the education sector at the beginning of the year. The BDMI digital investment fund with a focus on the United States, and BAI for investments in promising companies in China, acquired new shareholdings during the reporting period, including one in the IT recruiting platform Lagou.com. In India, investments were made in growth businesses including online marketplaces for furniture and real estate. Revenues and earnings from the club and direct-marketing businesses continued to diminish as planned. The sale of the businesses in Czech Republic and Slovakia was completed on March 31, 2014. In June, the decision was made to discontinue the German club business at the end of 2015. The sale of the 50 percent stake in Círculo de Lectores to the co-owner of Grupo Planeta went ahead and was completed on July 29, 2014. During the reporting period, the Corporate Center and the divisions together advanced the multiyear Operational Excellence program to optimize business support processes in the areas of HR, finance, IT and sourcing across the Group.
Overview of Figures (in € millions)
Figures of H1 2013 and as of December 31, 2013 are adjusted due to the first-time application of IFRS 11 “Joint Arrangements”.
* continuing operations
Bertelsmann is an international media company whose core divisions encompass television (RTL Group), book publishing (Penguin Random House), magazine publishing (Gruner + Jahr), services (Arvato), and printing (Be Printers) in some 50 countries. In 2013, the company’s businesses, with their more than 111,000 employees, generated revenues of €16.4 billion. Bertelsmann stands for a combination of creativity and entrepreneurship that empowers the creation of first-rate media, communications, and service offerings to inspire people around the world and to provide innovative solutions for customers.
For further questions, please contact:
Bertelsmann SE & Co. KGaA Andreas Grafemeyer Senior Vice President Media Relations Phone: +49 – 52 41 / 80 24 66 email@example.com
News and Information: 25 July 2014
The first of our two shareholders’ earnings reports for the first six months of 2014 was published today in London by Pearson. It includes information on Penguin Random House that you will be interested in reading. Half-year results for Bertelsmann will be posted on Friday, August 29.
Click here to view Pearson press release.
Press Release: 1 July 2014
Newly Expanded Penguin Random House Grupo Editorial Senior Management Team Announced By CEO Núria Cabutí Brull
(July 1, 2014)—Penguin Random House, the global trade book publisher 53% owned by Bertelsmann and 47% owned by Pearson, today announced it has completed the process to purchase Santillana Ediciones Generales, the trade book publishing business, from Santillana, the trade book-publishing business majority-owned by PRISA. The acquired company is now part of Penguin Random House Grupo Editorial (PRHGE), which will continue to operate under this name in Spain, Latin America, and now also Portugal. The headquarters of Penguin Random House Grupo Editorial will remain in Barcelona.expand
Penguin Random House’s previously announced acquisition of Objetiva, Santillana’s trade-publishing business in Brazil, is expected to be completed later in the second half of the year.
Today’s news was announced by Penguin Random House CEO Markus Dohle and Santillana CEO Miguel Angel Cayuela.
The acquired company is being merged with Penguin Random House Grupo Editorial in Spain, Portugal and Latin America, extending PRHGE's publishing business in the Iberian and the Latin American markets. The Group's growth potential in Latin America will be enhanced with Santillana's imprints in Mexico, Argentina, Colombia, Chile and Uruguay, alongside the longstanding PRGH publishing houses there. The imprints of Santillana will enable PRHGE to establish a publishing presence in Peru, Ecuador, Bolivia, Paraguay, Venezuela, the Dominican Republic, and Central America.
Núria Cabutí Brull, will lead the newly expanded company, continuing as CEO of Penguin Random House Grupo Editorial. Armando Collazos, formally Global Director of Prisa Ediciones, will become Executive Advisor to Cabutí, and to the Penguin Random House Grupo Editorial management team.
The heart of Penguin Random House Grupo Editorial will be its more than two dozen publishing imprints, each of which will retain its respective publishing identity and programs. Together, they will publish 1,500 titles a year, focusing on Spanish-language originals and Spanish translations of adult and children’s fiction and nonfiction, hardcovers, paperbacks, and e-books.
Markus Dohle said, “Exactly one year ago to this day we strengthened the breadth and diversity of our worldwide English-language publishing with the formation of Penguin Random House, and today, we celebrate the significant new opportunities for our international Spanish-language publishing with the completion of the acquisition that unites Santillana’s Ediciones Generales with Penguin Random House Grupo Editorial. It is a dream combination, a partnership of two wonderful traditions that will be advantageous for everyone; above all, our authors, who will benefit from great publishing choices with all the distinctive, independent imprints of Grupo Editorial and Santillana, and readers, who will enjoy the widest range of outstanding adult and children’s fiction and nonfiction. Together, our company’s talented and dedicated publishing teams will foster a universal passion for books by championing and advancing the reading experience for our society.”
The trade-book imprints of Penguin Random House Grupo Editorial will be Aguilar, Alamah, Alfaguara, Altea, Arena, Beascoa, Caballo de Troya, Cisne, Collins, Conecta, Debate, Debolsillo, Fantascy, Fontanar, Grijalbo, Literatura Random House, Lumen, Manderley, Montena, Nube de Tinta, Objectiva, Plaza & Janés, Punto de Lectura, RHFlash, Rosa dels Vents, Sudamericana, Suma de Letras, and Taurus.
Penguin Random House Grupo Editorial will boast an unrivalled roster of Spanish and international authors, including Nobel prize winners Alice Munro, Mario Vargas Llosa, Gabriel García Márquez, José Saramago, J.M. Coetzee, Orhan Pamuk, Doris Lessing, V.S. Naipaul, and Gunter Grass; Cervantes Award winners such as Juan Marsé, Jorge Edwards, Guillermo Cabrera Infante and Sergio Pitol; Spanish Literature Award winners Javier Cercas, Javier Marías, José María Merino and Luis Mateo Díez, and the current Prince of Asturias Award winners Juan Lavado "Quino" (Communication and Humanities) and John Banville (Literature). Spanish and international bestselling authors published by Penguin Random House Grupo Editorial include Isabel Allende, Florencia Bonelli, Jorge Luis Borges, Julio Cortázar, Joël Dicker, Umberto Eco, Albert Espinosa, Laura Esquivel, Ildefonso Falcones, Ken Follett, Carlos Fuentes, Elizabeth Gilbert, John Grisham, E L James, Stephenie Meyer, Kate Morton, Julia Navarro, Arturo Pérez-Reverte, Paul Preston, Marcela Serrano, Hiromi Shinya and Manuel Vicent.
Núria Cabutí Brull said, “On this historic day for Spanish-language book publishing we celebrate uniting two great companies and their publishing programs to achieve a tremendous new level of creativity and potential for our authors, booksellers, colleagues, and readers. Penguin Random House Grupo Editorial will put people first, and at the center of all our priorities and responsibilities. Our chief mission will be to publish books in traditional and emerging formats, so that we can best make available our authors’ fiction and nonfiction to the widest possible readership worldwide.”
With the closing of the deal, Cabutí announced the new senior management team for Penguin Random House Grupo Editorial, which draws upon executives from both sides of the company:
At the corporate level, Miquel Illa will become Chief Financial Officer and Distribution Director. Marta Grau is appointed head of Human Resources and Publishing Services. Carlos Ciria, will oversee IT, as well as Organization and Processes. Carmen Ospina will lead Digital Strategy and New Businesses.
Patxi Beascoa will be PRHGE’s head of Sales & Marketing for Spain. He also will oversee the company’s operations in Portugal, which will be headed by Clara Capitão.
Javier López Llovet will continue as General Director for Argentina and Latin America, reporting to Núria Cabutí. He will be assisted by Augusto di Marco, who will be Special Sales and Export Director, as well as oversee the Group's activities in Peru, which will remain the responsibility of Mercedes Gonzalez Cuenca.
Also reporting directly to Javier López Llovet will be these general directors: Chile: Hernan Rosso; Colombia: Elena Gómez; Uruguay: Luis Sica; and Mexico: Roberto Banchik. Banchik will also oversee PRHGE's activities in the U.S., headed by Silvia Matute. The company will retain Santillana's U.S. publishing and sales office in Miami.
Penguin Random House Grupo Editorial publishing leadership appointments also were announced today by Cabutí, who said, “I am looking forward to the many great books we all will publish together.”
Claudio López Lamadrid will be Publisher for the Group, and for Literatura Random House.
Pilar Reyes will be Publisher for the Alfaguara and Taurus imprints.
Núria Tey, Publisher for Plaza & Janés, Grijalbo, Conecta, and Rosa dels vents, will also lead the Aguilar and Suma de Letras imprints, with their respective teams.
Juan Díaz, Publisher of Debate, Lumen, Reservoir Books, Debolsillo, and the children's books division, will also be responsible for Punto de Lectura, Alfaguara (children's and young readers books), Altea, and El País Aguilar.
Penguin Random House (http://www.penguinrandomhouse.com/) is the world’s most global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, India and South Africa, and Penguin’s trade publishing activity in Asia and Brazil; DK worldwide; and Penguin Random House Grupo Editorial’s Spanish-language companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.
Press Release: 3 June 2014
Penguin Random House, the world’s most global trade book publisher, today introduced a new brand identity that reflects the recently merged company’s values, goals, and strengths, including its unique position in the international marketplace for books and commitment to the diverse and distinct publishing houses that serve as creative homes to many of the world’s most beloved authors and books of all time. expand
The visual connection between the wordmark and each publishing symbol creates a mutually enhancing and reinforcing brand identity for both. On the one hand, it denotes the global scale and reach of Penguin Random House, and on the other, it showcases the individuality and creativity of the company’s diverse publishing portfolio. This unifying visual synthesis represents the singular ability of Penguin Random House to nurture a universal passion for reading by publishing the very best books for all ages and interests, and connecting them to the widest readership worldwide.
Markus Dohle, CEO, Penguin Random House, said: “Presenting our new Penguin Random House wordmark side by side with each of our publishing imprint and brand symbols powerfully communicates what makes our company so special: our collective expertise and global scale coupled with our local publishing teams giving diverse and important voices a platform and audience. This fundamental understanding of our heritage and of the company we are building together for the future informs the design of the brand identity, and how we will visually represent who we are.”
Penguin Random House partnered with New York City-based design agency Pentagram to develop the company’s new brand identity, which replaces the interim logo introduced on July 1, 2013.
Announcements: 16 April 2014
The Pulitzer Prize Boards have honored Penguin Group and Random House books more than 120 times over the past ten decades with America’s most revered awards for Letters. On April 14, that cherished tradition continued as TOMS RIVER: A story of Science and Salvation by Dan Fagin (Bantam HC, E-Book, & RH Audio in the U.S. & Canada) was awarded the Pulitzer Prize for General Nonfiction.expand
Perhaps fittingly, the 2014 Pulitzer winners were announced on the 75th publication anniversary of John Steinbeck’s THE GRAPES OF WRATH, one of the most beloved of our Pulitzer honorees. Click here to view all cross-company Pulitzer recipients, to which TOMS RIVER: A Story of Science and Salvation is proudly welcomed. Please join us in congratulating Dan Fagin, his editor Ryan Doherty, and our publishing colleagues on becoming the newest addition to this singular, glorious piece of Penguin Random House publishing History.
Penguin Random House’s Pulitzer recognition also extends internationally. This year’s Fiction award winner, THE GOLDFINCH by Donna Tartt (Little Brown) is published by our sister publishers in two languages in multiple countries: as DER DISTELFINK in Germany by Verlagsgruppe Random House’s Goldmann (HC & E-Book) imprint, and as EL JILGUERO in Spain and Latin America by Grupo Editorial’s Lumen imprint (TP & E-Book).
In addition, Penguin Random House Canada distributes History Pulitzer winner, THE INTERNAL ENEMY: Slavery and War in Virginia by Alan Taylor (W.W. Norton).
We are honored to support the success of our Pulitzer winners across our territories. Hearty congratulations to our authors and publishing colleagues.
Press Release: 26 March 2014
(March 26, 2014, Berlin) -- Bertelsmann invests billions; achieves leap in profits
- Revenues and operating result improve in 2013
- Group profit up by more than 40 percent to €870 million
- Highest level of investment activity since 2005
- Net financial debt reduced to €636 million
- Significant progress on all four corporate strategic priorities
- Education business to be significantly expanded
The international media company Bertelsmann invested heavily in expanding its businesses in 2013, as the company increased its revenues, operating result and Group profit. Investments in implementing the Group’s strategy amounted to €2 billion, including financial debt assumed, up from €655 million in the previous year, and its largest sum since 2005. Group profit increased by 42 percent to €870 million. This is the highest Group profit since 2006, and is well above the latest expectations.
With transactions such as the merger of Penguin and Random House to create the world’s largest trade book publisher, the acquisition of full ownership in BMG and the acquisition of Gothia, the Arvato division’s biggest purchase to date, Bertelsmann made significant strides in implementing its strategy. These also include the realignment of key business units and stepped-up activity in growth regions. Further steps to advance all the strategic priorities are planned this year. The financial basis for this advancement was laid with last year’s placement of RTL Group shares. Bertelsmann has announced as a priority significant expansion of its education business over the next few months. The Group has also initiated the market entry of its BMG music rights subsidiary in China. Over the next few years, Bertelsmann will invest several billion euros in expanding existing and new businesses, and aims to make further acquisitions.
Bertelsmann Chairman and CEO Thomas Rabe said: “Bertelsmann delivered a gratifying business performance in 2013, and is acting from a position of strength. We have improved our growth profile through strategic decisions and have pushed forward the transformation to digital across all divisions. The diversity of our creative offerings and services is second to none. Also, our figures demonstrate our company’s economic capacity and solid financing. On this basis, in 2014 we will continue to work on making Bertelsmann a faster-growing, more digital, and more international company.” More specifically, he said, Bertelsmann will invest in growth areas such as education and music rights, as well as in the creative core of the company: “We want to gradually expand education into our third revenue mainstay, alongside media content and services. In music rights, the focus will be on further internationalization and strengthening the master rights business.”
Rabe emphasized that in 2013 and in the first few months of the current year, Bertelsmann has made significant progress on all four strategic priorities – strengthening the core, digital transformation, developing growth platforms and expanding in growth regions.
For example, the core businesses were particularly strengthened through the creation of the world’s leading trade book publisher, Penguin Random House, on July 1, 2013. RTL Group further expanded its families of channels. It also acquired TV production companies and, in Germany, much-sought broadcasting rights to the national soccer team’s qualifying matches for Euro 2016 and the 2018 World Cup. Bertelsmann’s Gruner + Jahr and Arvato divisions realigned themselves: Gruner + Jahr now addresses its readers and users along defined Communities of Interest, and Arvato has reorganized itself into Solution Groups to strengthen coordination between countries and its key account management for major customers.
Bertelsmann also increased its footprint and reach in the digital world. In 2013, RTL Group reported a total of 16.8 billion online video views. Through its participation in multi-channel networks it became the third largest YouTube provider (excluding music videos). Penguin Random House grew its e-book offerings to more than 77,000 titles. Gruner + Jahr broadened its portfolio of e-magazines, high-reach mobile services and apps. Arvato achieved further growth as a service provider for leading IT, high-tech and e-commerce companies. Bertelsmann’s various companies and editorial teams now operate approximately 3,500 social media channels with a combined total of 300 million followers on Twitter, Facebook, Google+ and YouTube.
An important milestone in the expansion of growth platforms was achieved in 2013 with the complete takeover of BMG. Five years after its exit from the traditional recorded-music business, Bertelsmann is again one of the leading players in the music industry. During the reporting period, BMG expanded with several catalog acquisitions and prominent artist signings, including Mick Jagger and Keith Richards of the Rolling Stones, Robbie Williams and the Backstreet Boys, followed by the acquisition of Talpa Music in the Netherlands at the beginning of 2014. In the education sector, an attractive portfolio of holdings has been built in the US and Europe via the “University Ventures Fund I” in which Bertelsmann is an anchor investor. Arvato enhanced its strengths in the fast-growing financial services sector by acquiring the Gothia Financial Group, which serves customers in 21 countries. Furthermore, with the acquisition of Netrada at the beginning of this year, Arvato became a leading European provider of integrated e-commerce services.
Bertelsmann also accelerated its business-building activities in growth regions. Together with CBS, RTL Group expanded into Southeast Asia for the first time. In the book publishing business Bertelsmann improved its position in China, India and South America through the merger of Penguin and Random House. In China, Arvato achieved further profitable growth with its service offerings. The Bertelsmann Asia Investments fund enlarged its portfolio and recorded a very positive performance. In Brazil, a step-by-step expansion of the business was initiated by investing in funds and innovative startups.
Bertelsmann CEO Thomas Rabe: “We are on track to increase our revenue volume to around 20 billion euros by 2017 and gradually increasing our Group profit to over one billion euros. The various growth initiatives in our divisions and at corporate level, possible acquisitions, and the full consolidation of Penguin Random House, BMG and Gothia in the current year will contribute to this. At the same time, we are downscaling low-growth businesses such as replication, printing and direct-to-customer businesses.”
In 2013, positive contributions came primarily from the aforementioned portfolio expansions as well as from the German television business. During the reporting period, revenues increased by 1.8 percent to €16.4 billion (previous year €16.1 billion). Growth from the portfolio expansion was offset by normalized revenues in the book business, generally weak advertising markets in Europe, and the scaling back of structurally declining business. Organically, revenues decreased by 2.8 percent. Exchange rate effects amounted to -1.2 percent; portfolio and other effects added 5.8 percent.
The operating result increased in 2013 despite startup losses in building new businesses: Bertelsmann generated operating EBIT of €1.75 billion after €1.73 billion in the previous year. Return on sales was again in the double digit range at 10.7 percent (previous year: 10.8 percent). In particular, the result reflects a strong business performance by Mediengruppe RTL Deutschland, thriving IT and SCM services at Arvato, and the strategic portfolio measures taken during the reporting period.
Against this backdrop, operating EBITDA from continuing operations rose to €2.3 billion (previous year: €2.2 billion). The full consolidation of BMG contributed to this increase. The EBITDA margin was 14.1 percent (previous year: 13.8 percent).
Thanks to lower expenditure on special items, Group profit improved by 42 percent during the reporting period to €870 million (previous year: €612 million) – the highest it has been since 2006.
The business expansion in 2013 led to the highest investments in eight years. Including financial debt assumed, Bertelsmann invested €2.0 billion (previous year: €655 million), mainly in the acquisitions of BMG and Gothia as well as for the purchase of various music catalogs and film rights. Thanks to the proceeds from the placement of RTL Group shares and a high level of operating cash flow, net financial debt was reduced to €636 million at year-end (previous year: €1,218 million). The Group’s broader economic debt was down to €4,178 million at December 31, 2013, after €4,773 million in the previous year. Adjusted operating free cash flow amounted to €1.8 billion (previous year: €1.9 billion).
Bertelsmann CFO Judith Hartmann added: “In financial year 2013 Bertelsmann demonstrated its high profitability, and the Group is in excellent financial shape. All the signs point to expansion and we have the resources available for it. The successful placement of RTL Group shares alone brought us proceeds of €1.5 billion. For 2014, Bertelsmann expects strong revenue growth, continued high profitability, and a positive development of Group profit.”
Bertelsmann employees are participating in the successes achieved: For the last financial year, they will receive profit participation amounting to €101 million (previous year: €92 million), the third-highest total in the company’s history to date.
In accordance with the terms governing the Bertelsmann 2001 profit participation certificate (ISIN DE0005229942), 15 percent on the nominal value will again be paid out on May 12, 2014. The pay-out for the 1992 profit participation certificate (ISIN DE0005229900) is 7.49 percent (previous year: 7.39 percent).
Other key financials:
Special items amounted to € -46 million compared to € -405 million in the previous year. The majority of the restructuring expenses relate to structurally declining businesses, notably the imminent closure of the Prinovis location in Itzehoe. They also include costs for the implementation of the new organizational structure of Gruner + Jahr and Arvato as well as integration costs in connection with the merger of Penguin and Random House. A re-measurement of the fair value of BMG after the takeover of the remaining BMG shares as well as a write-up on the carrying amount of the Atresmedia investment, had a positive impact.
In the reporting period, Bertelsmann generated net cash from operating activities of €1,785 million (previous year: €1,876 million). The Group’s long-term operating free cash flow adjusted for non-recurring items was €1,760 million (previous year: €1,861 million), and the cash conversion rate was 100 percent (previous year: 107 percent), which puts it within the target corridor of 90 to 100 percent.
Total assets increased significantly to €21.4 billion as of December 31, 2013 (previous year: €18.9 billion). The increase is mainly attributable to the reduction in shares in RTL Group, the merger of Penguin and Random House, the acquisition of the remaining BMG shares and the purchase of Gothia. Cash and cash equivalents remained at the previous year’s high level (€2.7 billion). The income from the reduction in shares in RTL Group and the merger of Random House and Penguin increased the equity to €8.7 billion (previous year: €6.1 billion). As a result of this increase, the equity ratio increased from 32.2 percent in the previous year to 40.7 percent.
Total investments including financial debt assumed increased sharply to €1,988 million (previous year: €655 million). Most of it consisted of the purchase price payments for the acquisitions of BMG and Gothia, investments in property, plant and equipment at Arvato, and the acquisition of music catalogs at BMG and film rights at RTL Group.
At the end of the financial year, the Group had 111,763 employees worldwide (previous year: 104,286). The increase of 7,477 employees is attributable primarily to strategic portfolio expansions. In 2013, there were 1,304 people (previous year: 1,254) serving in trainee positions in Bertelsmann companies in Germany.
Although advertising markets across Europe were mostly in decline, Europe’s leading entertainment group RTL Group was able to significantly increase its profitability in financial year 2013. Revenues reached €5.9 billion after €6.0 billion in the previous year, representing a 1.9 percent decrease. This revenue development reflects robust core businesses despite negative currency effects and lower revenues for the production arm Fremantle Media. In operating EBIT, another record result by Mediengruppe RTL Deutschland and the strong performance of the Dutch TV channels more than offset the impact of the negative development of advertising markets in many parts of Europe. The German TV advertising market singularly showed slight growth.
Operating EBIT increased by 6.8 percent to a new record level of €1.1 billion (previous year: €1.1 billion). This jumped the return on sales to 19.3 percent (previous year: 17.7 percent). Operating EBITDA increased slightly to €1.3 billion (previous year: €1.3 billion); this lifted the EBITDA margin to 22.6 percent (previous year: 20.9 percent). At year-end, RTL Group had 11,589 employees (December 31, 2012: 11,931). RTL Group succeeded in maintaining most of its leading positions in the audience markets. In France, the Netherlands, Hungary and Croatia, RTL Group’s families of channels grew their share of the TV ad sales market.
Mediengruppe RTL Deutschland increased both its revenues and earnings. The flagship broadcaster RTL Television remained the clear market leader in the main target group. The French Groupe M6 achieved lower revenues, partly because of the declining advertising market. Operating EBIT declined due to start-up losses for the new digital channel 6ter. Audience shares remained largely stable despite the market entry of new competitors. RTL Nederland grew its revenues and operating EBIT notwithstanding a shrinking advertising market, and scored higher viewer ratings.
The production arm Fremantle Media registered continued global interest in its major talent shows and invested in the development of new formats. Revenues fell mainly due to currency effects and because of the cancellation of formats in individual territories. Operating EBIT was slightly down year on year. In November, Fremantle Media acquired the Danish production company Miso Film, which specializes in series and TV movies.
In the growth market of Asia, RTL Group partnered with CBS Studios International to initiate the establishment of two new channels. The first channel, RTL CBS Entertainment HD, made its debut in 2013 in Malaysia, Thailand, Singapore and the Philippines. The launch of the second channel will follow in the spring of 2014. In Croatia, RTL Hrvatska established a new children’s channel, which went on air in January 2014 and has scored excellent ratings from the start.
RTL Group’s digital business also continued to be greatly expanded. The Group acquired a majority stake in BroadbandTV, one of the largest multichannel networks on YouTube, and also invested in the leading online video network for fashion and beauty StyleHaul, the German YouTube network Divimove, and the Dutch video-on-demand provider Videoload. The Group’s various online platforms and mobile applications recorded high growth rates.
RTL Group has been additionally listed on the Frankfurt Stock Exchange since the end of April 2013. Bertelsmann reduced its holdings and has held 75.1 percent of the shares in the company.
Penguin Random House
For Random House, 2013 was the year of the historic merger of all its divisions outside Germany with Pearson’s trade publishing division Penguin Group. The formation of Penguin Random House was completed on July 1, and the multiyear integration of the two units is now underway. Bertelsmann holds 53 percent of the shares in the world’s largest trade book publisher, while Pearson holds 47 percent.
This year-end consolidated revenue of €2.7 billion for the combined company reflects a full year of Random House, including Germany’s Verlagsgruppe Random House, and a half-year of the Penguin Group. Total sales were 23.9 percent above Random House’s previous year’s revenue (€2.1 billion). Adjusted for currency and portfolio effects, revenues decreased compared with the record year 2012, which was dominated by the exceptional success of the “Fifty Shades” trilogy. Operating EBIT fell 4.9 percent from the high level of the previous year – partly due to depreciations in connection with the initial inclusion of intangible assets at Penguin – to €309 million (previous year: €325 million). Return on sales came to 11.6 percent (previous year: 15.2 percent). Operating EBITDA increased to €363 million (previous year: €352 million). As a result, the EBITDA margin was 13.7 percent (previous year: 16.4 percent). At the end of the year, Penguin Random House had 11,838 employees (December 31, 2012, Random House: 5,712).
Penguin Random House’s biggest new release was Dan Brown’s “Inferno,” selling almost six million copies in its English-language territories in seven months. Other megasellers included Sheryl Sandberg’s “Lean In,” “And The Mountains Echoed” by Khaled Hosseini, “The Fault In Our Stars” by John Green and John Grisham’s “Sycamore Row.” Demand for English-, German- and Spanish-language editions of the “Fifty Shades” trilogy by E L James continued to be strong with more than seven million print, digital and audiobook copies sold in 2013.
The US company placed 261 titles on the “New York Times” hardcover and paperback bestseller lists from July to December, 27 of them at number one. During the same period, Penguin Random House UK placed 14 number one titles on the bestseller lists of the “Sunday Times.” In Germany, Verlagsgruppe Random House attained major growth in its digital publishing business, achieving first-time double-digit percentage of overall sales revenues with e-books. The division’s biggest-selling title of the year was “Die Analphabetin, die rechnen konnte” by Jonas Jonasson. A solid business performance in Latin America and a strong portfolio of Spanish-language bestsellers offset the impact of the difficult economy in Spain, where the publishing unit has operated under the name Penguin Random House Grupo Editorial since November. In India and South Africa, Penguin Random House completed the purchase of their respective co-partners’ ownership stakes.
With new apps, the increasing integration of social media into book marketing and growing e-book downloads, Penguin Random House has advanced its leadership in the transformation to digital. During the reporting period, the Group sold more than 100 million e-books worldwide, and more than 77,000 titles are now internationally available in digital form.
Many Penguin Random House authors received prestigious literary awards in 2013, including Alice Munro, the winner of the Nobel Prize in Literature. The Group’s authors also won four Pulitzer Prizes, a National Book Award in the United States, and for Verlagsgruppe Random House, the German Book Prize.
Gruner + Jahr
At Gruner + Jahr, the financial year was shaped by a personnel, organizational and strategic realignment to transform the existing printing and publishing company into a “house of content” with high-quality print and digital offerings for specific target groups. On the commercial side, Gruner + Jahr reported a significant fall in revenues and operating result during the reporting period; this was against a backdrop of declining ad sales revenues, the partial discontinuation of its business media along with other disposals, increased investment in the digital business and a decline in the international business. Revenues reached €2.1 billion after €2.2 billion in the previous year (-6.9 percent). Operating EBIT was down by 13.1 percent to €146 million (previous year: €168 million). Return on sales decreased to 7.1 percent (previous year: 7.6 percent). Operating EBITDA was €193 million against €213 million in the previous year, resulting in an EBITDA margin of 9.3 percent (previous year: 9.6 percent). At year-end, Gruner + Jahr employed 10,819 people (December 31, 2012: 11,585). Since April 2013, Gruner + Jahr has been jointly managed by Julia Jäkel (CEO), Stephan Schäfer and Oliver Radtke.
G+J Germany improved its results year on year. Sales revenues dipped in line with market conditions but adjusted for portfolio changes the advertising business developed positively, bucking the market trend. In Germany the business structures were fundamentally changed. With its realignment along eight Communities of Interest, G+J is resolutely focusing on the interests of its readers, users and customers. For instance, its strong position in the Living, Food and Family communities was expanded with investments in digital offers such as the Home and Furniture community Roomido, the online store for high-end foods Delinero and the online store for baby and children’s clothing Tausendkind. “Chefkoch” and “Flow” enhanced the print portfolio of the Food and Women communities with two innovative new titles. G+J Media Sales added market share in the ad sales market, and both G+J’s digital marketer EMS and the performance marketer Ligatus recorded continued dynamic growth.
Prisma Media’s magazine business in France declined due to difficult market conditions. The expansion of the digital business was successfully advanced, including through targeted acquisitions. For instance, the reporting period saw the acquisition of the two digital ad sales houses Mob Value and P Comme Performance.
Verlagsgruppe News in Austria declined, underperforming the market mainly in the ad sales business. In the reporting period, its activities in Southern Europe continued to be affected by difficult macroeconomic conditions. The company sold off its operations in Poland and parts of the operations in Southeastern Europe.
Gruner + Jahr’s activities in China reported declines due to a first-time reduction in the Chinese ad sales market. In the United States, the offset printing company Brown Printing saw a fall in revenues and earnings due to lower capacity utilization. The business of Dresdner Druck- und Verlagshaus was mostly stable.
During the reporting period, G+J journalists and authors won a variety of prestigious awards for their work; in Germany alone, they won more than any other publisher.
The international service provider Arvato delivered a robust business performance in financial year 2013. Revenues remained stable at €4.4 billion (previous year: €4.4 billion). Operating EBIT remained stable at €244 million (previous year: €244 million). Return on sales thus remained at 5.5 percent (previous year: 5.5 percent). Operating EBITDA increased to €401 million (previous year: €391 million); this put the EBITDA margin at 9.1 percent (previous year: 8.8 percent). There was a management changeover at the top of Arvato: Achim Berg has led the group as Chief Executive Officer since April 2013. A new organizational structure arranges the businesses by Solution Groups and countries, and a central Key Account Management system was introduced for major international clients. At year-end, Arvato employed 66,410 people (December 31, 2012: 63,627).
During the reporting period Arvato registered significant growth mainly at IT Services and supply chain management solutions for international customers in the Internet, high-tech and consumer goods sectors, as well as in China. Arvato’s acquisition of Gothia Financial Group, completed in June 2013, advanced its internationalization and transformed it into the third-largest service provider in Europe in the rapidly growing market for business information and financial services.
Operating EBIT also reflects upfront costs for acquisitions and set-up costs for newly acquired customers in the supply chain management and e-commerce businesses. In the reporting period, the customer-relationship management business showed a positive development in Germany and Spain, and declined slightly in France. In South America, Asia and Africa, new offshore sites for customer communications solutions were established or expanded to increase competitiveness.
Arvato’s Print Services maintained its position in a difficult market environment. Revenues in Replication declined as expected. In Brazil and China, Arvato sold holdings in replication factories.
The development of Arvato’s businesses varied from region to region. For example, performance was satisfactory in the European core countries given the difficult economic situation. In the UK, a major new government services client, the Department for Transport, was acquired. The service activities in Spain saw profitable growth despite the economic crisis. Meanwhile, the services businesses in France were not quite able to maintain the previous year’s high levels. In the North American market, the portfolio of customers and locations was systematically culled to increase the profitability of the businesses. In Turkey, Arvato’s services businesses grew dynamically, and in China the company’s logistics network was expanded considerably yet again.
Arvato won prestigious awards in various countries around the world for its tailored customer solutions.
In 2013, Bertelsmann’s gravure and international offset printing activities, grouped into Be Printers, generated revenues of €1.1 billion in a difficult market environment, down 7.5 percent from the previous year (€1.2 billion). Operating EBIT declined by 29.3 percent to €41 million (previous year: €58 million), and return on sales thus amounted to 3.7 percent (previous year: 4.8 percent). Operating EBITDA decreased to €92 million (previous year: €115 million), resulting in an EBITDA margin of 8.2 percent (previous year: 9.5 percent). At year-end, Be Printers employed 6,201 people (December 31, 2012: 6,571).
Declining print runs characterized Be Printers’ printing operations in the reporting period, as did continuing price pressure and high excess capacity in the industry. The group responded with new offers as well as various programs to increase efficiency and lower costs.
Specifically, the gravure division Prinovis realized savings in personnel costs and materials purchasing. Provisions for restructuring costs were formed for the planned closure of the Itzehoe site in April 2014. As a special item, these are not shown under operating EBIT. The fire at a gravure printing press in Dresden led to restrictions on production; at the same time, Prinovis received a compensation payment from the machine’s property insurance. As a special item, this is also not shown under operating EBIT. In the UK, a major customer cut order volumes. Overall, revenues and earnings were down at Prinovis. During the reporting period, several of Prinovis’ print products and digital offers won industry awards for their high quality.
Be Printers’ Southern European printing companies did business in a difficult market environment that was further exacerbated by macroeconomic developments in Italy and Spain. The units recorded declining volumes. Management countered this with measures to increase sales and cut costs, for example, in the areas of procurement and IT. The merger of the Italian and German calendar businesses also improved productivity and competitiveness.
Be Printers Americas countered the declining market development and kept its earnings stable. Growing business with clients outside the publishing industry – such as communications services for companies in the health-care sector – cushioned the decline in revenues. In 2013, major existing customers renewed their contracts with Be Printers Americas.
Corporate Investments/Corporate Center
In 2013, Corporate Investments, which includes all of Bertelsmann’s other operating activities, recorded significantly increased revenue of €582 million (previous year: €471 million) and operating EBIT of €-40 million (previous year: €-38 million). Operating EBITDA was €10 million compared with €-29 million in the previous year; the EBITDA margin was 1.7 percent. The acquisition of full ownership of the BMG Music Rights subsidiary, completed in April 2013, helped to boost revenues. This was partly offset by declining revenues in the Club and Direct Marketing businesses. Operating EBIT reflects start-up losses, among other factors for business expansion in the education sector, and a decline in earnings in the Club business. At year-end, Corporate Investments had 4,342 employees (December 31, 2012: 4,289).
Jointly established by Bertelsmann and KKR, the music rights company BMG is once again fully owned by Bertelsmann since the end of March 2013 and grew strongly during the reporting period. BMG acquired several catalogs of song and master rights: Primary Wave, Sanctuary, Mute and Virgin/Famous. Numerous national and international artists signed new contracts including Mick Jagger and Keith Richards of the Rolling Stones, Robbie Williams and the Backstreet Boys. BMG expanded its presence in all major music markets, including opening a branch in Canada.
In the reporting period, Bertelsmann invested in developing its new line of business: education. The University Ventures Fund, jointly established with other investors, expanded its international portfolio of holdings. Bertelsmann also made direct investments to increase its stake in Synergis Education, a service provider that supports academic institutions in establishing accredited online degree programs, and in the innovative US online education provider University Now.
The Bertelsmann Digital Media Investments (BDMI) and Bertelsmann Asia Investments (BAI) funds expanded their portfolios. For instance, BDMI joined RTL Group in investing in the online video network StyleHaul, which brought its holdings to a total of 49 at year-end. BAI acquired five new holdings – including providers of mobile payment services, car purchasing and cloud computing – and divested from three companies, realizing high capital gains in the process. The remaining portfolio, consisting of 20 holdings, developed very well. In India, two direct investments were made, including in the real estate portal indiaproperty.com. In Brazil, investments were also made in two online media start-ups.
Revenues in the Club business declined as planned in 2013. The operational business of the direct marketing company Inmediaone will be gradually phased out by mid-2014. The dismantling of the German Club continued with store closures, and the businesses in the Czech Republic and Slovakia were sold to a strategic investor.
The Corporate Center department, which comprises all of the Group’s Corporate Centers around the world, controlled and supported several large transactions in 2013, including the merger of Penguin and Random House into Penguin Random House, the world’s leading trade book publishing group, and the incremental placement of RTL Group shares on the Frankfurt Stock Exchange. Its work during the year also focused on the organization of a Management Meeting and “State of the Art Forum” in Silicon Valley, as well as the global employee survey. In the first half of 2013, the Bertelsmann Executive Board launched the Operational Excellence program, which is designed to monitor processes and structures in the financial, HR, IT and procurement departments across the Group. The program will support Group strategy by modernizing structures, improving efficiency and creating uniform standards of quality. It will be implemented in several stages over a period of up to five years.
Overview of figures (in € millions)
The comparative figures for the previous period have been adjusted.
Bertelsmann is an international media company whose core divisions encompass television (RTL Group), book publishing (Penguin Random House), magazine publishing (Gruner + Jahr), services (Arvato), and printing (Be Printers) in some 50 countries. In 2013, the company’s businesses, with their more than 111,000 employees, generated revenues of €16.4 billion. Bertelsmann stands for a combination of creativity and entrepreneurship that empowers the creation of first-rate media, communications, and service offerings to inspire people around the world and to provide innovative solutions for customers.
For further questions, please contact:Bertelsmann SE & Co. KGaA Andreas Grafemeyer Senior Vice President Media Relations Phone: +49 – 52 41 / 80 24 66 firstname.lastname@example.org
Announcements: 20 March 2014
Penguin Random House India Announces Publishing, Sales and Marketing Appointments & New Organizational Structure
(March 20, 2014, New Delhi) - Penguin Random House India’s new publishing, sales and marketing leadership appointments and cross-company organizational structure were announced today by Gaurav Shrinagesh, Chief Executive Officer. All changes will be effective 1st April 2014. The company is a division of Penguin Random House, the world’s largest trade book publisher, which was established on 1 July 2013 with the merger worldwide of Penguin and Random House.expand
Chiki Sarkar, currently Publisher at Penguin Books India, has been appointed as Publisher, Penguin Random House India with overall responsibility for building the local publishing programme in both English and local languages. Random House India’s first editor-in-chief in 2006, she moved to Penguin Books India in 2011 and has been instrumental in publishing many of the sub-continent’s finest writers including Amitav Ghosh, Arundhati Roy, Vikram Seth, Suketu Mehta, Vikram Chandra, Amit Chaudhuri and Pankaj Mishra and has launched the careers of some of the best new talent such as Mohammed Hanif, Shehan Karunatilaka, Basharat Peer, Daniyal Mueenuddin and Aman Sethi. She has recently been announced as one of the World Economic Forum’s Young Global Leaders, a community which assembles the world’s most outstanding next-generation leaders. Chiki will report to Penguin Random House India CEO Gaurav Shrinagesh.
Milee Ashwarya and Meru Gokhale have both been appointed to the role of Publishing Director, Penguin Random House India and will report to Chiki Sarkar.
In her new position Meru Gokhale, currently Editorial Director for Vintage, Random House India, will have direct responsibility for the prestigious Vintage India, Allen Lane, Hamish Hamilton, Viking and Classics publishing lists. Meru has acquired, edited and published books by authors including Paulo Coelho, Kiran Desai, Jamil Ahmad, Sonia Faleiro, Tahmima Anam, Jhumpa Lahiri, Salman Rushdie, Orhan Pamuk, Nadeem Aslam, Rahul Pandita, Basharat Peer and Mohammed Hanif. In 2013 she was awarded the prestigious Jerusalem Editorial Fellowship.
Presently Editorial Director for Ebury India and Random Business, Milee will oversee Ebury India, Random Business, Portfolio, Metro Reads, Shobhaa De Books and Penguin Ananda. Milee joined Random House India in 2008 and has worked across all genres of publishing during her career. She has commissioned, acquired and published bestselling books including From XL to XS, Jugaad Innovation, Dhandha, the IIMA Business series, the MINT Business series and worked with authors including Payal Gidwani Tiwari, Deanne Panday, Cyrus Broacha, Sudeep Nagarkar, Suhel Seth, Preeti Shenoy and Rocky Singh and Mayur Sharma.
Bringing focus to its children’s list, Hemali Sodhi will be taking on the newly created role of Director, Children’s for Penguin Random House India. During her time as Vice President Marketing and Communications, Penguin Books India, Hemali established Penguin as the foremost publishing brand in the country and in her new role she will have responsibility for growing the children’s local publishing program as well as the international list for the Indian market, along with product and brand development for children’s. The current children’s editorial, product and marketing teams will report to her.
Hemali will retain her responsibility for Penguin’s Annual Lecture, Spring Fever and all CSR activity. In addition, Hemali will manage Corporate Communications for Penguin Books India for the foreseeable future. She will report to Gaurav Shrinagesh in all capacities.
Caroline Newbury, currently VP Marketing and Publicity Random House India, will take on the role of VP, Marketing and Corporate Communications for Penguin Random House India and will oversee all marketing, publicity, digital and corporate communications functions for the company. Caroline joined Random House India two years ago after more than a decade with the Ebury Publishing division, Random House UK. She will report to Gaurav Shrinagesh.
Gaurav Shrinagesh, CEO, Penguin Random House India, said:
“Penguin Random House India is home to some of the finest editorial talent in the country, and this new structure ensures we will continue to be at the forefront of trade publishing in India. With the combined expertise of Chiki, Meru and Milee, who have each built lists of considerable repute, I am confident that our reputation for discovering the region’s best new writing talent as well as building the careers of our established authors is in very good hands.
“Children’s publishing is a real and major focus for Penguin Random House not only in India, but globally, and I am delighted that Hemali Sodhi will be overseeing this area in her new role. In her nearly two decades of work with Penguin Books India she has established the Penguin brand into a formidable publishing presence in India, and I know she will transfer these considerable skills into building our local and international children’s publishing list in India.
“In today’s changing retail market the key to driving our authors’ success is discoverability - being able to inform their readers, and potential readers, about their books. Establishing strong direct to consumer relationships is vital to this and in her new role overseeing marketing and digital, Caroline will be driving this for Penguin Random House India.
I am delighted to announce all of these appointments and know my colleagues will work tirelessly to provide a first-class environment for our authors to produce their best works and for these to be enjoyed by the widest possible readership.”
On the sales side, Ananth Padmanabhan has been appointed Senior Vice President, Sales with overall responsibility for sales across all distribution channels of Penguin Random House in India. He will report to Gaurav Shrinagesh.
Currently VP Sales, Penguin Books India, Ananth began his career with the Landmark bookstore in Chennai, in 1992, before joining Penguin Books in 1997. Over nearly twenty years with the company he has been instrumental in shaping the sales, distribution and representation strategy and in building Penguin’s presence across India and the Indian subcontinent.
Formerly responsible for sales for Random House India, Nand Nath Jha has been appointed VP, International Product and Digital Sales, reporting to Ananth. His role will include the entire portfolio of Penguin Random House Group international product and all the agency publishers it represents in India. He will also be responsible for all online and digital sales for the group and sales of children’s product. Nandan has worked in the book trade for two decades, starting his career with distributor India Book House before switching to retail (Crossword, 1995 and Jashanmals, 1998), then moving to Random House in 2000.
Manoj Satti will take on the role of General Manager International Product (Random House) and Sales Planning. Currently responsible for managing Product and Operations at Random House, Manoj began his career with Sterling Publishers and Pearson Education before moving to Random House eight years ago. His new role will involve overseeing the product development for Random House International products and all sales forecasting across PRH portfolio of products. Manoj will report into Nandan for product and Ananth for sales planning.
Rahul Dixit, currently General Manager, Penguin Books India, in his new role as General Manager, Local Publishing and Sales, will now oversee development of product and diversified sales for all local publishing across Penguin Random House India and will continue to lead sales for North India. He will be reporting to Ananth. Rahul started his career with Penguin books in 2005 and has handled diversified sales portfolios within the company.
Gaurav Shrinagesh, CEO Penguin Random House India said:
“Our new sales team represents decades of experience across a wide range of retail-related areas of publishing - distribution, shop-floor bookselling, inventory management, customer service, as well as direct representation. This wealth of knowledge will enable Penguin Random House to continue to ensure our books reach their readers, wherever and however they buy them.
“In their years with Penguin and Random House, Ananth and Nandan have built strong reputations within the industry for their excellent relationships with customers and their expertise in navigating the changing retail landscape. I am confident that supported by Manoj and Rahul’s knowledge of product and insight into sales development, this team will create a firm foundation for continued Penguin Random House growth.”
About Chiki Sarkar
Chiki Sarkar was educated at Oxford University and worked in Bloomsbury Publishing, London for seven years. In 2006 she returned to India to become the first editor in chief of Random House India. She has been the publisher of Penguin Books India since 2011.
About Milee Ashwarya
Milee Ashwarya studied English literature at Hindu College, Delhi University and began her publishing career at Rupa & Co. In 2008, she joined Random House India as Commissioning Editor and was promoted to Senior Commissioning Editor in January 2011. Working across all genres her list of authors includes Payal Gidwani Tiwari, Pratibha Karan, Cyrus Broacha, Suhel Seth, Preeti Shenoy and Rocky Singh and Mayur Sharma. She is currently Editorial Director of two imprints - Ebury India and Random Business - and is responsible for shaping Random House India’s list of popular fiction and non-fiction in all areas of lifestyle as well as business publishing.
About Meru Gokhale
A graduate of St. Stephen’s College, Delhi and the Columbia Publishing Course, New York, Meru Gokhale began her publishing career in 2004 with Penguin Books India, editing books across fiction and nonfiction, cookbooks, history and current affairs. She acquired, commissioned and edited books from authors including Orhan Pamuk, Kiran Desai, Jamil Ahmad, Sonia Faleiro and Tahmima Anam. She joined Random House as Editorial Director of the newly-created Vintage India in 2011. At Random House she has acquired and worked with authors such as Jhumpa Lahiri, Salman Rushdie, Helen Fielding, Nadeem Aslam, Rahul Pandita, Basharat Peer, Mohammed Hanif, and Abhijit V. Banerjee and Esther Duflo. In 2013 she was awarded the prestigious Jerusalem Editorial Fellowship.
About Hemali Sodhi
Hemali joined the publishing Industry in ’96 as a publicist with Penguin India. She has since shaped Penguin India’s marketing strategy, building a formidable brand which was, in 2012, voted as the #4 most successful brand across industries. Penguin is also the only publisher in the Country to boast its own Literature Festival in Delhi, ‘Spring Fever’ and its own lecture, ‘The Penguin Annual Lecture’, which is the largest open lecture featuring speakers as celebrated as HH the Dalai Lama. Penguin India is the most widely followed and engaged-with Publisher on social media, with its own award winning website, a hugely appreciated facebook and twitter strategy and the only publisher to have a multi-platform Mobile App. Penguin India’s marketing campaigns, both print and digital, have consistently won awards.
Hemali completed her post graduation in English literature, from Delhi University.
About Caroline Newbury
A graduate of Trinity College, Oxford University (M.A. Hons. Ancient and Modern History), Caroline Newbury joined Ebury Publishing, a division of Random House UK in 2001 as a publicity assistant. She worked there for 11 years, rising to Deputy Publicity Director, Ebury Publishing, before moving to Delhi in April 2012.
About Ananth Padmanabhan
Ananth began his career in publishing in ’92 as a bookseller with Landmark bookstores, based in Chennai. He joined Penguin Books in ‘97 and is currently Vice President, Sales. During the course of his career with Penguin, Ananth has shaped Penguin’s sales, distribution and representation strategy and has also been responsible for Penguin India’s digital strategy, including publishing, distribution and sales across channels and partners. He is a graduate from the University of Madras, has studied Publishing from Stanford University and has completed a course in Management from IIM Ahmedabad.
He is also a professional photographer and has done many projects, one of which, on publishing, called Calcutta: Walking in the City, can be seen on www.ananthpadmanabhan.com
About Nandan Jha
A graduate of Commerce from University of Delhi, Nandan Jha has worked in all areas of sales in book trade in the last 20 years. He started his career with a distributor (India Book House) in 1994, switched to retail (Crossword, 1995 and Jashanmals, 1998), and then moved to a publisher (Random House Group UK, 2000). In between, he also dabbled with some publishing (Hindi & English) and freelance sales & marketing representation of several independent publishers for 4 years.
He has held the position of Vice President – Sales at Random House India since April 2010, and is also responsible for the developing and executing digital strategy for the company in the domestic and international markets.
About Rahul Dixit
Rahul joined Penguin in 2005 as assistant sales manager following nearly 4 years of experience in selling school books. He headed Penguin’s North India business from 2008 to 2010 before becoming product manager for Penguin Local in 2011. In his current role as General Manager, he is responsible for all local sales and also manages Penguin’s relationship with two other local publishers Zubaan and Hay House.
About Manoj Satti
Manoj Satti’s career in publishing began in 2000 with Sterling Publishers handling sales and customer service activities. After four years at Pearson Education, where he handled promotional activities for their higher education and schools divisions as well as developing and managing their website, he moved to Random House as sales administrator. Over his seven year career with the company, he has been responsible for sales to distributors and retail across the country, the budgeting, product selection, inventory management and pricing strategy for international titles, Random House’s migration to new Microsoft ERP – Navision and few other IT initiatives – and overseeing imports, distribution and supply chain management. He also had responsibility for the creation of the Knowledge Encyclopedia for special sales which has sold over 650,000 copies.
For further information: Caroline Newbury, Penguin Random House, email@example.com, +91 9953070129
Penguin Random House India is a Penguin Random House company. Penguin Random House (http://global.penguinrandomhouse.com/) is the world’s first truly global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, and India, Penguin’s trade publishing activity in Asia and South Africa; DK worldwide; and Random House’s companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.
Announcements: 19 March 2014
(March 19, 2014)—The Global Trade Book Publisher To Purchase Santillana’s Spanish-Language,Portuguese And Brazilian Trade Book Businesses.expand
Penguin Random House, the global trade book publisher established last year by parent companies Bertelsmann and Pearson, today signed agreements with Santillana, the book publishing business majority-controlled by PRISA, to acquire the trade book business of Santillana Ediciones Generales, which operates in Spain, Portugal, and Latin America, including Brazil.
Penguin Random House Grupo Editorial, the publisher’s Spanish-language company, will purchase the Spanish-language and Portuguese-language trade book business companies of Santillana Ediciones Generales. The acquired Spanish-language business will be merged with Penguin Random House Grupo Editorial in Spain, Portugal and Latin America. Penguin Random House Brazil, Penguin Random House’s Brazilian holding company, will acquire Santillana’s Brazilian trade publishing business, Objetiva. The Spanish-language imprints being acquired include Aguilar, Alfaguara, Punta de Lectura, Suma de Letras, Taurus, and in Brazil, Alfaguara, Foglio, Fontanar, Objetiva, Ponto de Leitura, and Suma de Letras, among others.
Today’s announcement was made by Markus Dohle, CEO of Penguin Random House, and Miguel Angel Cayuela, CEO of Santillana. The closing is expected to occur once the relevant legal and administrative obligations are completed.
The combination of two highly-regarded Spanish trade book publishers will significantly increase the company’s presence in Spain and Latin America. The acquisition of Objetiva gives Penguin Random House a fully-owned publishing presence in Brazil, South America’s biggest market.
Until closing, Penguin Random House and Santillana Ediciones Generales operations will continue to operate independently. Post-closing, Santillana Ediciones Generales operations in its Spanish-language territories and in Portugal will become part of Penguin Random House Grupo Editorial. Núria Cabutí will continue in her role as the company’s CEO, with the support of Armando Collazos, Global Director for Prisa Ediciones. The newly expanded business expects to publish 1,500 titles a year.
Penguin Random House Brazil, which also holds a 45% minority stake in Companhia das Letras, will acquire full ownership of Objetiva, which is located in Rio de Janeiro. Luiz Schwarcz will supervise the operations of Penguin Random House in Brazil, with the support of Roberto Feith, CEO of Objetiva, and the highly regarded team which has made Objetiva one of the leading publishing houses in Brazil. Mr. Schwarz will also continue as Director General of Companhia das Letras. Editora Objetiva publishes many leading Brazilian and international authors, including: Jon Lee Anderson, João Cabral de Mello Neto, Daniel Goleman, Daniel Kahneman, Stephen King, Haruki Murakami,Vladmir Nabokov, Joao Ubaldo Ribeiro, Mario Vargas Llosa, Luis Fernando Veríssimo, Carlos Ruiz Zafón, among others.
With this acquisition, Penguin Random House Grupo Editorial will expand its consumer-publishing business in Spain, and in the high-growth Latin American markets, such as Santillana’s businesses in Mexico, Argentina, Colombia, Chile and Uruguay. It will also gain a new foothold through Santillana’s trade book businesses in Peru, Ecuador, Bolivia, Paraguay, Venezuela, Dominican Republic and Central America. Penguin Random House Grupo Editorial will have a new presence in Portugal, and expand its presence in the Spanish-language U.S. market. This transaction does not include the acquisition of Santillana’s children’s and young adult literature geared to schools and educational institutions.
Penguin Random House Grupo Editorial as a newly combined company will maintain the editorial and entrepreneurial identity autonomy of all of its imprints. It will publish original Spanish-language and Spanish translations of adult and children’s fiction and nonfiction in hardcover, paperback and digital formats under Santillana’s trade book imprints Alfaguara, Aguilar, Altea, Fontanar, Punto de Lectura, Suma de letras, and Taurus, as well as under Penguin Random House Grupo Editorial’s existing imprints: Beascoa, Caballo de Troya, Collins, Conecta, Debate, Debolsillo, Fantascy, Grijalbo, Literatura Random House, Lumen, Montena, Nube de Tinta, Plaza & Janés, RHFlash, Rosa dels Vents, and Sudamericana.
The union of Penguin Random House Grupo Editorial and Santillana Ediciones Generales will create a complementary roster of Spanish and international authors, including many Nobel Prize winners such as Alice Munro, Mario Vargas Llosa, Gabriel García Márquez, José Saramago, J.M. Coetzee, Orhan Pamuk, Doris Lessing and V.S. Naipaul and Gunter Grass; Cervantes Award winners such as Juan Marsé, Jorge Edwards, Guillermo Cabrera Infante and Sergio Pitol; and Spanish National Literature Award winners Javier Cercas, Javier Marías, José María Merino and Luis Mateo Díez, among others. The international bestselling authors published by both groups include Isabel Allende, Claudia Bonelli, Jorge Luis Borges, Julio Cortázar, Joël Dicker, Umberto Eco, Albert Espinosa, Laura Esquivel, Ildefonso Falcones, Ken Follett, Carlos Fuentes, Elizabeth Gilbert, John Grisham, E L James, Stephenie Meyer, Kate Morton, Julia Navarro, Chimamanda Ngozi Adiche, Arturo Pérez-Reverte, Paul Preston, Quino, Marcela Serrano, Hiromi Shinya, and Manuel Vicent, among others.
Markus Dohle said, “It is very exciting that our first international acquisition for Penguin Random House is the prestigious Santillana Ediciones Generales publishing group. It meets two of our major strategic goals: to strengthen our long-term commitment to Spanish-language book publishing as we increase our literary and commercial potential in one of the world’s most vital language markets, and to strengthen our publishing presence in Brazil. We will draw and build upon the great publishing traditions of Penguin Random House Grupo Editorial, Santillana Ediciones Generales, Companhia das Letras, and Objetiva, and the creativity and dedication of their enormously talented staff. With our combined company, we will be in an even stronger position to provide authors and booksellers with a tremendous variety of publishing opportunities, and readers with an incomparable range of reading choices. The union of Penguin Random House Grupo Editorial and Santillana’s trade book businesses will be ideal for bringing Spanish- and Portuguese-language authors to a wider global audience, together with achieving greater international reach for Penguin Random House.”
Miguel Angel Cayuela, CEO of Santillana, said. “This was not an easy decision to make. However, these are times that require us to devote all our efforts to the very operations that defined us from the very beginning of our company, and our core business, which is education. Spurred by innovation and technology, we are experiencing a major transformation across the sector, and our hope and commitment is that Santillana will be a major player in this change. We now hope to put all our knowledge and ideas to work in the service of a new and better education program,” Mr. Cayuela thanked “especially the work done by all employees of Santillana’s general-interest publishing houses.”
Núria Cabutí said, “With Santillana Ediciones Generales we bring together the knowledge, experience and capabilities of two prestigiuous publishing groups dedicated to Spanish-language book content, both fully committed to their authors, agents, booksellers and colleagues. We will preserve the identity and independence of all imprints, as well as our publishing programs in both companies. Authors will remain our top priority. We always will strive to offer them the highest-quality editorial, marketing and distribution support for their books. This milestone event will enable us to offer our readers an unprecedented range of titles, along with our ongoing commitment to excellence across all markets in which we operate.”
Amando Collazos, Global Director of Prisa Ediciones, stated, “Following the decision of Santillana to strenghten operations in the education sector, and in light of the need to optimize global operations in a new, fast-changing environment, it gives us great satisfaction to know that a group with international leadership such as Penguin Random House will be providing continuity to the work our publishing teams have carried out in recent years to connect our authors with their readers.”
Companhia das Letras imprints are Boa Companhia, Claro Enigma, Companhia de Bolso, Companhia das Letras, Companhia das Letrinhas, Panelinha, Paralela, Penguin-Companhia (Classics), Portfolio-Penguin, Quadrinhos na Cia., and Seguinte. Among the leading authors they publish are Jorge Amado, Martin Amis, Paul Auster, Saul Bellow, Roberto Bolaño, Jorge Luis Borges, Chico Buarque,, Fernando Henrique Cardoso, Italo Calvino, J.M. Coetzee, Carlos Drummond de Andrade, Nick Hornby, Milan Kundera, Ian McEwan, Stieg Larsson, Vinícius de Moraes Alice Munro, George Orwell, Amós Oz, Orhan Pamuk, Fernando Pessoa, Philip Roth, Salman Rushdie, José Saramago, Jô Soares, Donna Tartt, Érico Veríssimo, among others.
Luiz Schwarcz, CEO, Companhia das Letras, said, "It is an honor for Companhia das Letras to become a part of this fantastic, creative universe, which combines the best publishing houses in the world and a catalogue of authors that is unrivalled anywhere. It is also an unprecedented opportunity to broaden the promotion of Brazilian authors internationally, which Companhia das Letras has been intensely developing during the past years. It will be a tremendous privilege and great pleasure soon to be able to collaborate with Roberto Feith and the excellent team at Objetiva. In bringing together the storied heritages and outstanding authors of both companies we believe we can create a new standard for Brazilian publishing as we maintain the autonomy and editorial identities of our imprints.”
Roberto Feith, CEO, Objetiva, observed, “For me and the team at Objetiva it is a unique opportunity and an immense source of satisfaction to become part of this superbly qualified publishing group, Penguin Random House. Additionally, after the closing of the deal, it will be a pleasure to work together closely with Luiz Schwarcz. We have been colleagues and friends for years, and Objetiva surely will benefit from his experienced leadership and his respect for our publishing programs.”
Penguin Random House (http://global.penguinrandomhouse.com/) is the world’s first truly global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, and India, Penguin’s trade publishing activity in Asia and South Africa; DK worldwide; and Random House’s companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.
Santillana is the leading publishing group in Spain and Latin America with an international presence in 22 countries. Since March 2000, Santillana has been part of PRISA, the largest media group in the Spanish- and Portuguese-speaking markets, and leader in education, news and information, and entertainment.
Press Release: 13 December 2013
(Dec 13, 2013, Cape Town)—Trade book publisher Penguin Random House today announced the completion of its purchase of Times Media Group's majority stake in South Africa-based Random House Struik.expand
Random House Struik was formed in 2008 following the merger of Random House South Africa and Struik Publishers to create a significant new player in the African book publishing industry. The new company, known as Random House Struik, brought together two of the country's most prominent book publishers, with The Random House Group holding a 49.9 per cent stake and Times Media Group’s New Holland Publishing holding 50.1 per cent. Following today’s acquisition, Penguin Random House now takes 100 per cent ownership of Random House Struik.
Ian Hudson, CEO, Penguin Random House International, said: “We have enjoyed a terrific partnership with Times Media and New Holland Publishing over the last five years and they pass to us a fantastic legacy of a thriving local publishing list and an innovative digital programme, including world-leading nature apps. We look forward to building on this with Random House Struik now a wholly-owned part of Penguin Random House.”
Andrew Bonamour, CEO, Times Media Group, said: “We are very pleased to have concluded the sale of our shareholding in Random House Struik to our long term partners in the business, who we believe will cherish and grow what is generally considered to be the best local publishing list in South Africa”.
Random House Struik and Penguin Books South Africa will now work in close cooperation under the excellent respective leaderships of Steve Connolly and Stephen Johnson with a view to integrating the businesses within Penguin Random House in 2014.
Random House Struik’s local publishing promotes books written in both English and Afrikaans, under the Struik Lifestyle, Struik Nature, Struik Travel & Heritage, Fernwood Press and Zebra Press non-fiction imprints and the Umuzi fiction imprint. These are published alongside a stunning array of internationally acclaimed authors from Random House and there is a full and developing programme of both print and digital content.
Press Release: 4 November 2013
The Mondadori Publishing Imprint Will Take The Name Of Literatura Random House
(Barcelona, November 4, 2013)—Effective Monday, 4 November, Random House Mondadori is renamed Penguin Random House Grupo Editorial. The new name represents its position and identity as the Spanish-language publishing company of the newly formed Penguin Random House. This name change encompasses two major corporate initiatives undertaken in the past twelve months: In November 2012, parent company Bertelsmann, on behalf of Random House, acquired full ownership from previous joint-venture partner Mondadori of Random House Mondadori, which was created in 2001. On July 1, 2013, Bertelsmann and Pearson merged their respective trade book publishing divisions to form Penguin Random House in the U.S., Canada, the U.K., Australia, New Zealand, India, China, South Africa, Spain, Mexico, Argentina, Colombia, Uruguay, and Chile.expand
Under the leadership of Núria Cabutí, who has been CEO since 2010, Penguin Random House Grupo Editorial will maintain its present organizational structure for its publishing divisions in Spain and Latin America, as well as the identity and direction of its respective publishing programs, together with its unwavering commitment to making its authors’ works available to the widest possible audience.
The company’s Mondadori imprint also will have a name change; henceforth it will be known as Literatura Random House. It will continue to publish the same range of subjects and authors as before, utilizing the same publishing criteria that have made it one of the most respected literary imprints in Spain and Latin America.
The Spanish-language divisions of Penguin Random House Grupo Editorial publish fiction and nonfiction books for adults and children in hardback, paperback, audio, and electronic formats through the following imprints: Beascoa, Caballo de Troya, Collins, Conecta, Debate, Debolsillo, Electa, Fantascy, Grijalbo, Lumen, Nube de Tinta, Plaza & Janés, Random House, Reservoir Books, RHM Flash, Rosa dels Vents, and Sudamericana.
In announcing the company’s name change Núria Cabutí said, “Today we begin our life as Penguin Random House Grupo Editorial, bringing with us the fantastic legacy of our history in Spanish-language publishing and the pride of being part of the first truly global trade publishing company. We will continue to publish with passion a wide array of authors, and our priority will be to continue to grow as both a print and digital publisher. Connecting authors and readers remains our essential mandate.”
She added “Literatura Random House will carry forward its mission to publish the highest-quality literature both in Spanish and in translation.”
The catalogue of Penguin Random House Grupo Editorial consists of an incomparable list of authors, including several Nobel Prize-winners, among them this year’s laureate Alice Munro, and Gabriel García Márquez, J .M. Coetzee, Orhan Pamuk, V.S. Naipaul, Elfriede Jelinek, and Doris Lessing.
Penguin Random House (http://global.penguinrandomhouse.com/) is the world’s first truly global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, and India, Penguin’s trade publishing activity in Asia and South Africa; DK worldwide; and Random House’s companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates, and hundreds of the world’s most widely read authors.
Press Release: 30 August 2013Bertelsmann achieves record result in first half of 2013
- Good progress with Group reshaping
- €7.43 billion in Group revenues
- Record Operating EBIT at €768 million
- Group result exceeds €400 million for the first time in more than ten years
Gütersloh, August 30, 2013 -- The international media company Bertelsmann made good progress with its Group reshaping during the first half of 2013 while also generating a record operating profit.expand
Against the backdrop of a difficult market environment and several structurally declining businesses, Group revenue decreased slightly by 1.9 percent to €7.43 billion (H1 2012: €7.57 billion). In contrast, operating EBIT reached €768 million, a new record level (H1 2012: €730 million). RTL Group in Germany and the Random House book publishing group delivered particularly good performances. Return on Sales was in the double digits at 10.3 percent (H1 2012: 9.6 percent), while Group net income improved significantly to €419 million (H1 2012: €350 million), the highest it has been since 2002. The first six months also saw several special items, including a gain from the acquisition of full ownership in the music rights company BMG. The Bertelsmann Value Added (BVA), which measures the profit realized above and beyond the cost of capital, was €102 million for the first half (H1 2012: €90 million).
Thomas Rabe, Chairman & CEO of Bertelsmann, said: "The first six months of this year went well for Bertelsmann. Our operating profit reached record levels, and our return on sales was in the double digits, clearly demonstrating that Bertelsmann is reshaping the Group from a position of strength. We have made good progress on our four strategic priorities - strengthening the core, digital transformation, building growth platforms, and expanding our activities in growth regions. In recent months, the combination of Random House and Penguin into the world's first truly global book publisher, the acquisition of the Gothia Financial Group, and the acquisition of full ownership in our music rights business BMG were milestones that will make Bertelsmann a faster growing, more digital and more international company. Overall, our total investments including assumed financial debt during the first six months of the year came to €1.6 billion. The successful public-trading placement of RTL Group shares gives us the leeway to further advance our Group reshaping."
RTL Group significantly increased its operating result for the reporting period, despite declining TV ad sales markets across nearly all European countries; Random House surpassed last year's interim-period EBIT thanks to multiple international bestsellers. The magazine publisher Gruner + Jahr maintained its operating result at the prior year's level despite declining revenues in the international business. At Arvato, earnings were down slightly - due in part to acquisition costs - while revenues increased. Growth drivers included IT services, as well as services for international customers in the Internet and high-tech industries. While the operating result and revenues of Bertelsmann's gravure and international offset printers decreased due to the difficult market environment, revenues in the Corporate Investments department were boosted by the full consolidation of the music rights company BMG. The combination of Random House and Penguin completed on July 1st of this year, and the acquisition of the Gothia Financial Group by Arvato, have no impact on earnings yet.
Judith Hartmann, Chief Financial Officer at Bertelsmann, said: "The transactions of the past few months are testaments to the systematic implementation of our strategy. They will enable Bertelsmann's revenues and operating result to grow at the completion of the year. Given the comparatively low macroeconomic growth seen in the euro area, we are expecting organic growth to remain stable or slow down slightly. Our average return on sales will remain in the double digits."
Bertelsmann had 104,348 employees worldwide at June 30, 2013 (December 31, 2012: 104,286).Divisions: RTL Group
- With the acquisition of a stake in Broadband TV, RTL Group becomes a major player on YouTube, the first non-American broadcaster to become involved in the sector of fast-growing multi-channel networks.
- All new channels show growth in the first half: RTL Nitro is a hit with German television audiences, 6ter is popular in France and RTL Big Thrill now reaches 31 million households in India with its growing range of programs.
- Partnership sealed: Fremantle Media Kids & Family Entertainment to jointly develop and produce new children's formats with BBC Children's.
Despite declining TV advertising markets in almost all European countries, the leading European entertainment network reported first-half revenues on a par with the previous first half-year at €2.8 billion (H1 2012: €2.8 billion). Operating EBIT rose significantly to €545 million (H1 2012: €498 million). While the German TV advertising market remained stable during the reporting period, France, the Netherlands, Belgium, Eastern Europe and especially Spain reported declines. These were largely compensated for by higher revenues from Mediengruppe RTL Deutschland and RTL Nederland, as well as the sale of rights to the Handball World Cup by UFA Sports.
The increase in operating EBIT was also primarily due to Mediengruppe RTL Deutschland. Despite lower revenues, Fremantle Media reported higher operating EBIT, largely due to continuing cost reduction measures and increased earnings in North America and the AsiaPacific region. All of RTL Group's other major business units achieved stable operating profits despite the difficult economic conditions. RTL Group was able to maintain its leading positions in the various audience markets. In the first half of the year, Mediengruppe RTL Deutschland scored an audience share of 31.2 percent in its main target group, which was stable year on year. Gains at Vox, RTL II and RTL Nitro more than offset the lower audience shares of the main channel RTL Television. In France, the Groupe M6 family of channels reported a slightly lower audience share. 6ter, the new channel launched in December 2012, showed a positive development. The Dutch family of channels based around RTL 4 achieved the same market share as in the prior year. RTL Group's online platforms and mobile applications continued to see dynamic growth. In June 2013, RTL Group announced the acquisition of a 57.5 percent stake in the Broadband TV multichannel network. RTL Group shares have been listed on the Prime Standard of the Frankfurt Stock Exchange following a placement by Bertelsmann at the end of April 2013 - in addition to their listings in Luxembourg and Brussels. In June, the share was added to the SDAX index.Random House
- Global publishing group Penguin Random House is established on July 1, 2013 following extensive, diligent internal preparation on all sides during the half-year.
- Random House achieves all-time record half-year EBIT.
- Dan Brown's #1 bestselling "Inferno" sells more than 4 million copies, mid-May to June 30, in all English-language territories.
For Random House, the first half of the year was dominated by a robust bestseller business across its divisions worldwide, led by the multi-million-copy fiction success of Dan Brown, amid preparations for the merger with Penguin to create Penguin Random House on July 1, 2013. At €915 million, Random House revenues were among its highest ever for a half-year, slightly lower than the "Fifty Shades" trilogy-enhanced prior half-year (H1 2012: €947 million). Operating EBIT soared to a mid-year record of €117 million (H1 2012: €113 million). In the United States, Random House placed 142 titles on the "New York Times" bestseller lists during the reporting period. The biggest success was Dan Brown's new novel "Inferno," with first-week sales of more than one million copies in North America, and four million hardcover and digital editions sold in the English-language territories during the reporting period. Sheryl Sandberg's "Lean In," "Gone Girl" by Gillian Flynn, and "Wonder" by RJ Palacio were also hugely successful. Demand for the Random House English-, German- and Spanish-language versions of E L James's "Fifty Shades" trilogy continued to be strong, with more than five million print, audio and e-books sold in this half-year. In the UK the Random House Group notably increased its share of titles on the "Sunday Times" national bestseller lists, with "Inferno" the half-year's number one seller. Germany's Verlagsgruppe Random House had an outstanding first half-year, and saw strong growth in e-books during the first half of the year, with digital now accounting for more than 10 percent of its revenues. At the publishing group Random House Mondadori, fully consolidated since the buy-out of its joint venture partner in December 2012, a broad range of Spanishlanguage bestsellers and a solid business performance in Latin America offset the continued weak book business in Spain.
Random House has expanded its worldwide e-book portfolio to 52,000 titles, and has strategically invested in the development of new digital marketing tools and data analytics to further improve the dialog between readers and authors, and the sales potential for their books.Gruner + Jahr
- G+J Deutschland revitalizes its big flagship magazines "Stern," "Brigitte," "Gala" and "Capital."
- G+J launches numerous new digital formats for the German market and invests in commerce businesses in the food and family segments.
- In France, Prisma Media advances the digital transformation of its established brands with new apps in the women's and TV sectors.
The magazine publisher achieved first-half revenues of €1.0 billion after €1.1 billion in H1 2012. This is attributable to the partial closure of G+J Business Media at the end of 2012 as well as to declining revenues in the international business. Operating EBIT was maintained on a par with the previous year at €86 million (H1 2012: €85 million). The ad sales market for popular magazines in Germany and France developed positively, while sales revenues declined slightly in most of the countries where G+J has operations. The G+J Supervisory Board appointed Julia Jäkel as CEO of the company. Further to this, Gruner + Jahr's Executive Board and responsibilities were reshuffled to create overarching areas of responsibilities. The new Executive Board will focus on transforming the traditional magazine publisher into a modern, much more digital house of content. G+J Deutschland recorded positive business development overall in the first half, especially due to the good performance of its main magazine titles in the ad sales market. There was significant work on titles such as "Stern," "Brigitte," "Capital" and "Gala," and investments were made here as well. Digital revenues developed just as positively, on the product side as well as in digital marketing. The international businesses reported differing progress depending on macroeconomic conditions. In Spain and Austria, revenues and earnings were down on the previous year. France also reported a decline in revenues, but was able to increase earnings year on year. Prisma Media made targeted investments in the digitization of important magazine brands. In China, lower economic growth and changed conditions caused a decline in advertising revenues. In July 2013, Gruner + Jahr completed the sale of its Polish publishing operations, G+J Polska, to Burda International in order to focus on its core markets. Dresdner Druck- und Verlagshaus saw largely stable revenues and earnings. The US printing business Brown Printing managed to slightly increase its operating EBIT despite a decline in revenues.Arvato
- Arvato acquires the international Gothia Financial Group and becomes a leading provider of integrated financial services in Europe.
- Expansion of government services businesses in the UK through the acquisition of a British Department for Transport shared service center.
- Arvato's services businesses in China and Turkey report dynamic growth.
The global business process outsourcing provider Arvato increased its first-half revenues slightly to €2.1 billion (H1 2012: €2.1 billion), while operating EBIT was down slightly year on year to €84 million after €88 million. Operating profit reflects such things as acquisition costs and set-up costs for newly acquired clients in the supply chain management and e-commerce business. There has been a change in leadership at the head of Arvato: Achim Berg has led the group as CEO since April 2013. Growth drivers during the period under review included Arvato Systems as well as services for international customers in the internet and high-tech industries. The global revenues from storage media replication continued to decline during the reporting period, as expected. Arvato improved its position in key growth markets and industries in the first half of the year. In China, the services business continued to develop rapidly, and in Turkey as well, existing relationships were strengthened and new customers were acquired. With its takeover of the international Gothia Financial Group, completed in mid-June 2013, Arvato has systematically invested in a growth market while also advancing the internationalization of its financial services business.Be Printers
- Berryville Graphics in the United States prints 1.2 million copies of Dan Brown's new bestseller "Inferno."
- The offset printing company Rotocobrhi is at full capacity despite adverse market conditions in Spain.
- Prinovis Germany's sales organization is given a new management and a more effective structure.
Bertelsmann's international gravure and offset printers generated revenues of €512 million in a difficult market environment during the reporting period, after €565 million in the same period last year. Operating EBIT declined to €3 million (H1 2012: €15 million). Prinovis, the gravure printing arm, increased the productivity of its German sites while also realizing savings in the cost of personnel and materials. High reserves for restructuring costs were formed for the planned closure of the Itzehoe site in 2014, which, as a special item, are not recognized in operating EBIT. The fire at a gravure press in Dresden led to constraints on production, but Prinovis received an insurance payout for the machine. As a special item, this is not reported in operating EBIT. In the UK, Prinovis recorded a decline in revenues and earnings due to lower order volumes from a major customer. Be Printers Americas gained new major customers through cross-site and cross-media production concepts ("one-stop shop"); several existing customers extended their contracts. At the same time, it improved cost structures and productivity at several sites. Be Printers Southern Europe recorded lower volumes, further price declines and lower earnings in illustration printing due to macroeconomic developments in Italy and Spain. The management countered this with revenue and cost measures and set the course for further improvements in the second half of the year. A merger of the calendar business in Italy and Germany improved productivity and competitiveness. Despite adverse market conditions in Spain, the Spanish Rotocobrhi offset printing plant operated at full capacity during the period under review.Corporate Investments
- Shortly after its full acquisition by Bertelsmann, BMG signs rock legends Mick Jagger and Keith Richards of the Rolling Stones.
- Bertelsmann's education business grows with innovative educational offers in the United States.
- Digital funds expand their investment portfolios: BDMI and BAI bank on ventures of the future including the fashion video network Stylehaul and the Chinese shopping portal Mogujie.
Corporate Investments reported first-half revenues of €250 million (H1 2012: €227 million) and an operating loss of €-27 million (H1 2012: €-27 million). This reflects the full consolidation of the BMG music rights company on March 30, 2013, and at the same time the decline of the club and direct marketing business. In the reporting period, Bertelsmann acquired all outstanding shares of BMG and now manages the company as a 100 percent subsidiary. During the course of the first half-year, following antitrust clearance, the catalogs of Mute, Virgin/Famous and Sanctuary, with numerous timeless hits in their portfolios, were acquired. BMG also signed new contracts with several famous artists, including Mick Jagger and Keith Richards of the Rolling Stones at the end of June 2013. In the education sector, Bertelsmann made particular progress with its US holdings Synergis and University Now. The educational services provider Synergis gained several more universities as partners, while the online degree programs offered by University Now were state-accredited for another five years and the number of enrolled students continued to rise. The BDMI fund for worldwide digital investments and the BAI fund for investments in promising Asian companies acquired new holdings, including the online video network Stylehaul. The club and direct marketing businesses underwent further downscaling. Inmediaone's direct marketing operations are to be discontinued by mid-2014, while the bookselling business of the associated publisher Wissenmedia will be discontinued at the end of 2013. The Corporate Center primarily managed and supported two major transactions during the first half-year: the successful placement of RTL Group shares on the Frankfurt Stock Exchange and the merger of Penguin and Random House. Furthermore, a multi-year project was launched to identify potential for optimization in the fields of IT and IT purchasing, HR and the various finance functions.About Bertelsmann
Bertelsmann is an international media company whose core divisions encompass television (RTL Group), book publishing (Penguin Random House), magazine publishing (Gruner + Jahr), services (Arvato), and printing (Be Printers) in some 50 countries. In 2012, the company's businesses, with their more than 100,000 employees, generated revenues of €16.1 billion. Bertelsmann stands for a combination of creativity and entrepreneurship that empowers the creation of first-rate media, communications, and service offerings to inspire people around the world and to provide innovative solutions for customers.
For further questions, please contact:
Bertelsmann SE & Co. KGaA
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Phone: +49 - 52 41 / 80 24 66
Press Release: 1 July 2013
BERTELSMANN & PEARSON FINALIZE MERGER TRANSACTION
(July 1, 2013)—The global senior executive team for Penguin Random House was announced today by Chief Executive Officer Markus Dohle, following the closing of the transaction by shareholders Bertelsmann SE & Co. KGaA and Pearson this morning to formally establish the venture. Bertelsmann owns 53% and Pearson 47% of the company. Penguin Random House will combine the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, and India; Penguin’s trade publishing activity in Asia and South Africa; DK worldwide; and Random House’s companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Random House’s German-language publishing group, Verlagsgruppe Random House, is outside the venture, and remains part of Bertelsmann, continuing to report to Mr. Dohle.expand
Between mid-February and early June, in order of review, Penguin Random House received governmental merger control approval in the U.S., New Zealand, Australia, the European Commission, Canada, South Africa, and China, all without condition.
Penguin Random House will employ more than 10,000 people across five continents. It will comprise nearly 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.
Effective with today’s closing, Markus Dohle, Chairman and CEO of Random House worldwide since 2008, assumes the position of CEO, Penguin Random House, and John Makinson, head of the Penguin Group worldwide since 2002, takes on the position of Chairman of Penguin Random House. The Penguin Random House Board appointments were announced separately by Bertelsmann and Pearson this morning.
Mr. Dohle said, “Today, Penguin and Random House officially unite to create the first truly global trade book publishing company. As separate companies, we have long performed outstandingly by every benchmark; as colleagues, we will share and apply our passion for publishing the best books with our enormous experience, creativity, and entrepreneurial drive. Together, we will give our authors unprecedented resources to help them reach global audiences—and we will provide readers with unparalleled diversity and choice for future reading. Connecting authors and readers is, and will be, at the heart of all we strive to accomplish together.”
John Makinson said, “Penguin Random House starts life today as a freshly minted company, but also as a creative enterprise that will draw on the greatest legacies in the history of book publishing. That heritage will help to frame the culture and personality of Penguin Random House as we place our extraordinary shared resources at the service of our authors, our customers, our readers, and our colleagues. It is an exciting day for all of us.”
In announcing his senior executive appointments, Mr. Dohle said, “Our global and local leadership comprises proven executives drawn from both sides of the company who are inclusive and collaborative with colleagues in their decision making and who fully support our publishers and our authors in realizing their vision and objectives for our books.”
Effective immediately, the following newly appointed executives report to Mr. Dohle, who additionally serves as CEO for the Penguin Random House U.S. company:
Coram Williams, previously CFO for the Penguin Group, will serve in a dual capacity as Chief Financial Officer for Penguin Random House, in the U.S. and worldwide. Mr. Williams will also oversee the self-publishing business Author Solutions.
David Shanks has stepped down as CEO, Penguin Group (USA). He will serve as Senior Executive Advisor to Mr. Dohle and the U.S. executive team.
Madeline McIntosh, formerly Chief Operating Officer, Random House U.S., becomes President and Chief Operating Officer of Penguin Random House in the U.S.
Brad Martin, formerly President and CEO of Random House of Canada, is appointed CEO of Penguin Random House in Canada.
Tom Weldon assumes responsibility for Penguin Random House in the U.K. as CEO. He was previously Chief Executive Officer, Penguin Group UK.
Gail Rebuck will become Chair of the Penguin Random House U.K. Board.
Ian Hudson will serve as Deputy CEO of Penguin Random House U.K., a position he previously held at Random House UK. Separately, he will oversee Penguin Random House’s operations in Australia, New Zealand, India, South Africa, and Asia in his capacity as Chief Executive Officer, Penguin Random House International (English Language).
Gabrielle Coyne will be CEO of Penguin Random House Asia Pacific and Gaurav Shrinagesh will be CEO of Penguin Random House India. Ms. Coyne previously served as CEO of Penguin Group Asia Pacific, and Mr. Shrinagesh as Managing Director of Random House India. Stephen Johnson will continue to lead Penguin Books South Africa. They will all report to Mr. Hudson.
Also, continuing in their current capacities:
Núria Cabutí, Chief Executive, leads the company in Spain and Latin America; it will operate under the name Random House Mondadori.
John Duhigg, Chief Executive, Dorling Kindersley, is responsible for the Dorling Kindersley (DK) business worldwide.
Mr. Dohle announced the appointments of three executives with Penguin Random House global corporate responsibilities: Frank Steinert will be the company’s Chief Human Resources Officer, Stuart Applebaum will lead communications, and Milena Alberti will oversee corporate development, each having served in similar capacities at Random House. All will also have responsibility in the U.S. for their respective corporate functions.
Mr. Dohle also announced the newly formed Penguin Random House Global Executive Committee to work together with him to set the company’s strategic, operational, and publishing direction and priorities. The Committee’s members are:
Núria Cabutí; Gina Centrello, President and Publisher, Random House Publishing Group; Tony Chirico, President, Knopf Doubleday Publishing Group; Gabrielle Coyne; John Duhigg; Leslie Gelbman, President, Mass Market Paperbacks, Penguin Group U.S.; Ian Hudson; Barbara Marcus, President and Publisher, Random House Children’s Books; Brad Martin; Maya Mavjee, President and Publisher, Crown Publishing Group; Madeline McIntosh; Sonny Mehta, Chairman and Editor-in-Chief, Knopf Doubleday Publishing Group; Susan Petersen Kennedy, President, Penguin Group U.S.; Andrew Phillips, Chief Executive Officer, Author Solutions; Frank Steinert; Don Weisberg, President, Penguin Young Readers Group U.S.; Tom Weldon; and Coram Williams.
Penguin Random House world headquarters are in New York City.
Penguin Random House (http://global.penguinrandomhouse.com/) is the world’s first truly global trade book publisher. It was formed on July 1, 2013, upon the completion of an agreement between Bertelsmann and Pearson to merge their respective trade publishing companies, Random House and Penguin, with the parent companies owning 53% and 47%, respectively. Penguin Random House comprises the adult and children’s fiction and nonfiction print and digital trade book publishing businesses of Penguin and Random House in the U.S., U.K., Canada, Australia, New Zealand, and India, Penguin’s trade publishing activity in Asia and South Africa; DK worldwide; and Random House’s companies in Spain, Mexico, Argentina, Uruguay, Colombia, and Chile. Penguin Random House employs more than 10,000 people globally across almost 250 editorially and creatively independent imprints and publishing houses that collectively publish more than 15,000 new titles annually. Its publishing lists include more than 70 Nobel Prize laureates and hundreds of the world’s most widely read authors.