Bertelsmann’s Profit Hike

Whatever plans it has to re-shape itself for a digital future, Bertelsmann’s current business model continues to return a healthy profit, making euro 147 million ($191 million) in the first quarter of 2012.

That’s 56 percent up on last year, when it made euro 94 million ($122 million).

Although revenues are up 5 percent to euro 3.64 billion ($4.72 billion) and pre-tax earnings are up 13 percent to euro 280 million ($363 million), there are those in the company who believe a public offering is the best way to raise funds for further expansion.

When Bertelsmann announced its 2011 results March 27, chief exec Thomas Rabe hinted that “more capital will be required” if the company wants to accelerate its move into digital businesses and expand into developing economies.

He said an initial public offering is “one of several capital-raising options” being considered by Bertelsmann, and that no decision would be reached until the board has undertaken a strategic review.

The board would need to sell the idea to the Mohn family, which has a controlling interest in the Gutsersloh-based media giant.

Former chief exec Thomas Middelhoff – who oversaw a campaign to expand worldwide and online – was dismissed in 2002, largely because the Mohns balked at his plans to take Bertelsmann public.

After the Q1 figures were announced, Rabe said they underscore the good starting position that Bertelsmann has established for its planned long-termed reshaping into a faster-growing, more digital and more international company.