Axel Springer Reports Consolidated Earnings Results for the First Quarter of 2018; Provides Earnings Guidance for the Full Year of 2018
Axel Springer reported consolidated earnings results for the first quarter of 2018. For the quarter, the Group increased revenues in the first quarter by 6.9% to EUR 773.5 million against EUR 723.5 million a year ago. Organically, which means adjusted for consolidation and currency effects, the increase was 4.7% compared to the prior year period. Earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted for non-recurring effects, increased considerably by 16.3% to EUR 171.2 million against EUR 147.2 million a year ago. Organically, Group EBITDA grew by 6.7% in the reporting period. The adjusted EBITDA margin increased to 22.1% against 20.3% a year ago. The consolidated net income, adjusted for non-recurring effects and depreciations due to purchase price allocations, increased in the first quarter by 3.7% to EUR 80.9 million against EUR 78.1 million a year ago. The company achieved adjusted earnings per share of EUR 0.63 compared to EUR 0.62 in the prior year. This amounts to an increase of 0.7%, whilst the organic growth was 2.2%. Unadjusted consolidated net income increased considerably in the reporting period by 79% to EUR 84.7 million against EUR 47.3 million a year ago. The primary contributor to this increase was the one-time effect from the transfer of the Axel-Springer high-rise in Berlin to the Axel Springer Pensionstreuhandverein. Non-adjusted earnings per share increased from EUR 0.36 in the prior year period to EUR 0.69. Adjusted for consolidation and currency effects, revenues were 1.9% higher than in the prior year period.
The Group further developed its position as a digital growth company in the first quarter of 2018. The Executive Board confirm their full-year forecast for 2018. On the revenue side it expects a rise in the low to mid single-digit percentage range. This growth in earnings is also going to be achieved organically. The Group expects adjusted EBITDA to rise by a figure in the low double-digit percentage range. For adjusted earnings per share, Axel Springer expects an increase in the low to mid single-digit percentage range. Organically, adjusted EBITDA and adjusted earnings per share are expected to increase in the mid to high single-digit percentage range.