Hubert Burda Media: Back on the Growth Path

By Hubert Burda Media, PRNE
Thursday, June 9, 2011

MUNICH, June 10, 2011 -

- All Divisions Profitable

- Accelerated Growth Thanks to Efficient Structures, Strong Brands and
Leading Market Positions

Hubert Burda Media recorded a noticeable recovery of group
sales in the fiscal year 2010. Consolidated group turnover (external sales)
increased by 8.4 per cent to EUR 1,720.6m (2009: EUR 1,587.1m). The operating
performance increased by 5.8 per cent to EUR 2,199.4m (2009: EUR 2,078.2m).
The growth in the divisions Foreign Publishing and Digital were the main
drivers behind the growth in turnover. Every division achieved positive
results due to the positive development of sales as well as the timely and
comprehensive adjustment of the cost structures to the overall economic
development. The group result was satisfactory and above the level before the
global financial crisis. Burda CEO Dr Paul-Bernhard Kallen: "We are back on
the growth path and have established an economic foundation that will allow
us to grow more rapidly in the coming years." Hubert Burda Media expects a
continuation of growth in the current fiscal year and an increase in sales to
over two billion Euros. In 2010, the consolidated sales of the business
divisions developed as follows:

The Four Pillar Strategy comprising the divisions Domestic
Publishing, Foreign Publishing, Digital and Printing is one of the group's
strengths and a guarantee for stable development. The division Domestic
Publishing generated 34.1 per cent (2009: 38.2 %) of the external sales, the
division Foreign Publishing 23.1 per cent (2009: 21.6 %). Digital increased
significantly to 35.1 per cent (2009: 32.0 %). The business division Direct
Marketing, shown separately as a fifth division in previous years, generated
7.5 per cent (2009: 8.1 %). Due to its focus on digital activities, as of the
fiscal year 2010, it has been integrated into the division Digital. The
former core division Digital stood at 27.6 per cent (2009: 23.9 %). The
division Printing generated 7.4 per cent (2009: 7.8 %) and the other
divisions 0.3 per cent (2009: 0.4 %) of external sales. In 2010, the group
invested again in the expansion of all business divisions.


Publisher Dr Hubert Burda was early to recognize the changes
brought about by the digital revolution. Today, the corporation is
successfully established in the digital world. The implementation of a profit
center structure in the mid 1990s laid the cornerstone for the growth driver
Burda Digital GmbH, which is now one of the leading digital media companies
in Europe. Its six business fields comprise more than 50 shareholdings:

- Consumer electronics: "CHIP", "Cyberport", etc.

- E-papers: "Tomorrow Focus AG", "Holiday Check", "Elite
Partner", etc.

- Conferencing / Innovation platform: "DLD", internationally
leading digital conference

- Business community: "XING", etc.

- Venture portfolio: "suite101", "Game:Duell", "Glam",
"edelight", etc.

- Direct marketing: "Burda Direkt Services", etc.

Over the course of only a few years, Digital has become one of
the main pillars for Hubert Burda Media and today makes up 35.1 per cent of
total turnover. The digital business activities grew considerably to EUR
(2009: EUR 507.3m). The merger of the Burda Direct Group, one of the
largest direct marketing groups in the German-speaking world, and the
consulting and technology service provider Burda Digital Systems at the end
of 2010 created Burda Direkt Services, a powerful service provider for
customer management, direct marketing and technology services with a clear
focus on growth in the digital sector and a stable turnover in the amount of
EUR 129.5m (+1.3 %).

Domestic Publishing

In 2010, Hubert Burda Media sold around 350 million magazines
in Germany. 80.4 per cent of all Germans aged 14 and older read one of the 77
(2009: 77) titles. External sales of German publishing houses of Hubert Burda
Media declined by 3.3 per cent to EUR 586.6m (2009: EUR 606.6m). Although the
downward trend of the distribution market continued, the group increased
sales in the distribution channel Grosso, maintained a nearly stable turnover
across all divisions and significantly improved its market position in
distribution through its investment in the company Moderner Zeitschriften
Vertrieb GmbH & Co. KG (MZV). The group held its position as market leader in
advertising. The central advertising sales organization, Burda Community
Network GmbH (BCN), was able to maintain its lead in the competitive
environment of the relevant German top publishing houses and kept its market
share almost stable at 22.5 per cent (excluding media advertising) in
comparison to the previous year (2009: 22.9 per cent). Hubert Burda Media was
also able to defend its strong market position thanks to new titles such as
"Mein schones Land", "Freundin Donna" or "Instyle Men". So all in all,
magazines remained a very profitable business. Since 2008, Domestic
Publishing has been reorganized: The consolidation program CHANGE,
successfully concluded in May 2011, is followed up with a comprehensive,
two-year program launched to strengthen profitability (S.P.E.E.D.).

Foreign Publishing

Hubert Burda Media and its partners published 226 titles
(2009: 191 titles) abroad in 2010. At 179 titles (2009: 143 titles),
activities primarily focused on Eastern Europe, followed by Asia and Turkey
(a total of 24 titles) and smaller-scale activities in France (8 titles) and
the UK (5 titles). In 2010, sales in the division Foreign Publishing
increased by 15.6 per cent to EUR 396.9m (2009: EUR 343.2m). The group has
continued its internationalization efforts and will expand especially in
Eastern Europe and Asia.


Burda Druck is among Europe's largest printing companies. In
2010, printing sales increased by 3.7 per cent to EUR 127.5m (2009: EUR
). HT Burda Media Ltd., the joint venture of Burda Druck and the Indian
daily newspaper publisher Hindustan Times, opened for business in 2010 as
India's first illustration gravure printing plant for media products. For
2011, Burda Druck is not expecting any deterioration with regard to use of
capacity and orders in comparison to 2010. All reasonable and possible
measures to strengthen the division's competitiveness will be implemented.
These measures also include the acquisition of rotogravure printing company
u.e. sebald, Nuremberg, from the insolvent Schlott group during the current
fiscal year.


At the end of 2010, Hubert Burda Media employed a workforce of
7,637 people (2009: 7,118), thereof 2,642 or 34.6 per cent in the booming
digital sector (2009: 34.4 per cent). Hubert Burda Media has been investing
sustainably in the education and further training of existing and new
employees for years. The scope of the training measures offered increased
again significantly. The Work-Life Balance Initiative promotes the
compatibility of career and family, exercise, health and relaxation. The two
largest German sites in Munich and Offenburg were certified as
family-friendly companies. More than half of the workforce and around one
third of the specialists and managers at Hubert Burda Media are women. The
percentage of female executives among the editorial staff is even higher: One
out of two Burda publications are headed by female Editors-in-Chief.

Environment and Corporate Social Responsibility

Environmental protection retains its high importance for
Hubert Burda Media and is an inherent part of corporate policy. Through the
optimization of the production processes in printing, the company has been
able to reduce the specific amount of energy used per production unit by 16
per cent in comparison to 2000. Modern machines and new concepts enabled the
company to reduce the amount of energy used - and therefore also the carbon
dioxide emissions - by nearly half in the new printing plant in Offenburg. In
order to anchor these developments and to champion further improvements,
environmental management now includes an energy management unit. Furthermore,
the group supports several foundations, such as the TRIBUTE TO BAMBI
Foundation, which helps children in need in Germany and the affiliated
Christian Liebig Foundation, which supports people in developing countries,
as well as first and foremost the Hubert Burda Foundation, active in the
fields of science and culture. This foundation also includes the Felix Burda
Foundation, which successfully educates the public about colon cancer


As an international media corporation, Hubert Burda Media
continues to work on taking a leading role in its business areas. The
Internet is becoming ever more important as an advertising and sales channel.
Consequently, the division Digital is growing in importance as well and is
expected to make up the largest share of the total turnover in 2011 - even
excluding the direct marketing business. The division Foreign Publishing
remains a growth driver as well. The domestic distribution and advertising
sales will benefit from the continued economic recovery. Due to efficient
structures, strong brands and leading market positions, the group expects
growth to pick up. The number of employees will increase to 8,000 for the
first time during the current fiscal year.

For additional information please refer to


    Nikolaus von der Decken
    Director Corporate Communications
    Hubert Burda Media
    Phone: +49(0)89-92-50-3422
    Email: / /


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