Bertelsmann could strike more deals in coming months, CEO says

By Cian Muenster and Klaus Lauer

Aug 28 (Reuters) – Bertelsmann could complete one or two more sizeable acquisitions in the coming months, its CEO told Reuters on Friday, signalling continued dealmaking by the German media group.

“It is entirely possible that we will conclude one or two larger transactions in the next few months,” Thomas Rabe said, adding the company would continue to expand through both organic growth and acquisitions.

Rabe said Bertelsmann continued to see growth opportunities in the United States, China, India and Brazil, and reiterated its goal of generating €1 billion ($1.2 billion) of revenue in India over the medium term.

Asked about the June takeover of Sky Deutschland by Bertelsmann’s broadcasting unit RTL Deutschland, Rabe reaffirmed expectations for annual synergies of €250 million but declined to give details on any job cuts.

“We are in discussions with employees and employee representatives, and we will announce in the autumn which direction we are going to take,” he said. Reuters reported in April that several hundred jobs were likely to be cut.

Rabe, who will be succeeded by Thomas Coesfeld at the end of the year, said the transition was progressing smoothly. He added that the two executives had worked closely on the merger of Bertelsmann’s music unit with rival Concord, which is nearing completion.

Bertelsmann also said on Friday that it now expects strong revenue growth and significant growth in its adjusted operating EBITDA, having previously forecast both metrics would remain stable.

The company reported first-half adjusted operating earnings before interest, taxes, depreciation and amortisation of €1.31 billion, up from €1.25 billion a year earlier. 

($1 = 0.8586 euros)

(Reporting by Cian Muenster and Klaus Lauer. Editing by Ludwig Burger and Mark Potter)