In a brief update on results for the first quarter, Bertelsmann reported that total revenue fell 7%, to 3.56 billion euros and the company had a net loss of 78 million euros compared to earnings of 77 million euros in last year’s first quarter. No mention was made of Random House’s performance, with the company blaming the weak results on a drop in advertising and “consumer reluctance,” which offset improvements in Bertelsmann’s service businesses that are benefiting from growing demand for outsourcing.
The company said the coming months “will continue to be dominated by strict cost discipline,” and noted that Bertelsmann still expects revenue and profits to decline for the year. How much results will drop will depend on the intensity and duration of the economic downturn, Bertelsmann said.
