Consolidated Financial Statements

Selected chapters from the Bertelsmann Financial Statements 2018 can be found here in digital form.

The complete Annual Report 2018 can be found here as a PDF flip catalog.

Consolidated Income Statement

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in € millionsNotes20182017
Revenues117,67317,190
– thereof revenues from contracts with customers17,455n/a
– thereof revenues from financial services218n/a
Other operating income2473568
Cost of materials13(5,535)(5,487)
Royalty and license fees(1,593)(1,547)
Personnel costs3(5,658)(5,541)
Amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment4(847)(691)
Other operating expenses5(2,954)(2,781)
Results from investments accounted for using the equity method115763
Impairment and reversals on investments accounted for using the equity method11(2)(50)
Results from financial assetsn/a(10)
Results from disposals of investments126182
EBIT (earnings before interest and taxes)1,6201,896
 
Interest income61514
Interest expenses6(115)(134)
Other financial income74926
Other financial expenses7(165)(125)
Financial result(216)(219)
 
Earnings before taxes from continuing operations1,4041,677
Income tax expense8(301)(472)
Earnings after taxes from continuing operations1,1031,205
  
Earnings after taxes from discontinued operations1(7)
 
Group profit or loss1,1041,198
 
attributable to: 
Bertelsmann shareholders 
Earnings from continuing operations752783
Earnings from discontinued operations1(7)
Earnings attributable to Bertelsmann shareholders753776
    
Non-controlling interests   
Earnings from continuing operations 351422
Earnings from discontinued operations 
Earnings attributable to non-controlling interests351422

Consolidated Statement of Comprehensive Income

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in € millionsNotes20182017
Group profit or loss1,1041,198
 
Items that will not be reclassified subsequently to profit or loss
Remeasurement component of defined benefit plans(60)176
Changes in fair value of equity instruments 3n/a
Share of other comprehensive income of investments accounted for using the equity method
  
Items that will be reclassified subsequently to profit or loss when specific conditions are met
Exchange differences
– changes recognized in other comprehensive income94(445)
– reclassification adjustments to profit or loss2013
Available-for-sale financial assets
– changes in fair value recognized in other comprehensive incomen/a17
– reclassification adjustments to profit or lossn/a(35)
Cash flow hedges
– changes in fair value recognized in other comprehensive income23(45)
– reclassification adjustments to profit or loss2(27)
Share of other comprehensive income of investments accounted for using the equity method(2)(8)
 
Other comprehensive income net of tax1780(354)
 
Group total comprehensive income1,184844
 
attributable to:
Bertelsmann shareholders816508
Non-controlling interests368336

Consolidated Balance Sheet

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in € millionsNotes12/31/201812/31/2017
Assets 
Non-current assets 
Goodwill98,4108,084
Other intangible assets92,5912,478
Property, plant and equipment101,6701,658
Investments accounted for using the equity method11658952
Minority stakes and other financial assets121,143644
Trade and other receivables145987
Other non-financial assets15851710
Deferred tax assets81,051928
16,43315,541
Current assets 
Inventories131,7351,664
Trade and other receivables144,4594,010
Other financial assets127167
Other non-financial assets151,002868
Current income tax receivables156120
Cash and cash equivalents161,4051,440
8,8288,169
Assets held for sale823
25,34323,713
  
Equity and liabilities 
Equity17 
Subscribed capital1,0001,000
Capital reserve2,3452,345
Retained earnings5,1294,497
Bertelsmann shareholders’ equity8,4747,842
Non-controlling interests1,3641,285
 9,8389,127
Non-current liabilities 
Provisions for pensions and similar obligations181,7381,685
Other provisions19135126
Deferred tax liabilities8127124
Profit participation capital20413413
Financial debt214,6704,251
Trade and other payables22353366
Other non-financial liabilities22395391
7,8317,356
Current liabilities 
Other provisions19299323
Financial debt21667668
Trade and other payables224,7184,313
Other non-financial liabilities221,8391,709
Current income tax payables88214
 7,6117,227
Liabilities related to assets held for sale633
25,34323,713

Consolidated Cash Flow Statement

Consolidated Cash Flow Statement download icon

in € millions20182017 (adjusted)
Group earnings before interest and taxes1,6211,889
Taxes paid(534)(434)
Depreciation and write-ups of non-current assets855766
Results from disposals of investments(7)(176)
Gains/losses from disposals of non-current assets(62)(119)
Change in provisions for pensions and similar obligations(113)(121)
Change in other provisions(20)7
Change in net working capital(178)(225)
Fair value measurement of investments(157)(15)
Other effects3233
Cash flow from operating activities1,4371,605
– thereof discontinued operations
Investments in: 
– intangible assets(295)(319)
– property, plant and equipment(325)(360)
– financial assets(258)(211)
– purchase prices for consolidated investments (net of acquired cash)(556)(213)
Disposals of subsidiaries and other business units1134
Disposals of other fixed assets191339
Cash flow from investing activities(1,130)(760)
– thereof discontinued operations1
Issues of bonds and promissory notes942697
Redemption of bonds and promissory notes(400)
Proceeds from/redemption of other financial debt(150)282
Interest paid(196)(166)
Interest received2712
Dividends to Bertelsmann shareholders(180)(180)
Dividends to non-controlling interests and payments to partners in partnerships (IAS 32.18(b))(356)(743)
Change in equity(59)(657)
Cash flow from financing activities(372)(755)
– thereof discontinued operations
Change in cash and cash equivalents(65)90
Exchange rate effects and other changes in cash and cash equivalents28(24)
Cash and cash equivalents 1/11,4421,376
Cash and cash equivalents 12/311,4051,442
Less cash and cash equivalents included within assets held for sale(2)
Cash and cash equivalents 12/31 (according to the consolidated balance sheet)1,4051,440

Change in Net Financial Debt

in € millions20182017 (adjusted)
Net financial debt at 1/1(3,479)(2,625)
Cash flow from operating activities1,4371,605
Cash flow from investing activities(1,130)(760)
Interest, dividends and changes in equity, additional payments (IAS 32.18(b))(764)(1,734)
Exchange rate effects and other changes in net financial debt435
Net financial debt at 12/31(3,932)(3,479)

Consolidated Statement of Changes in Equity

 

Sub-
scribed
capital
Capital
reserve1)
Retained earnings     Bertelsmann
shareholders'
equity
Non-
controlling
interests
Total
  Other
retained
earnings
Accumulated other comprehensive income2)
in € millions Exchange
differences
Available-
for-sale
financial
assets
Fair value
reserve
Cash flow
hedges
Share of other
comprehensive
income of invest-
ments accounted
for using the equity
method
Balance as of 1/1/2017 1,000 2,345 4,276 113 85 n/a 32 21 7,872 2,023 9,895
Group profit or loss 776 n/a 776 422 1,198
Other comprehensive income 170 (361) (16) n/a (54) (7) (268) (86) (354)
Group total comprehensive income 946 (361) (16) n/a (54) (7) 508 336 844
Dividend distributions3) (180) n/a (180) (789) (969)
Changes in ownership
interests in subsidiaries
that do not result
in a loss of control
(400) 52 n/a 1 (347) (282) (629)
Equity transactions with shareholders (580) 52 n/a 1 (527) (1,071) (1,598)
Other changes (11) n/a (11) (3) (14)
Balance as of 12/31/2017 1,000 2,345 4,631 (196) 69 n/a (22) 15 7,842 1,285 9,127
     
Balance as of 1/1/2018 1,000 2,345 4,631 (196) 69 n/a (22) 15 7,842 1,285 9,127
Adjustment 59 (69) 10 (8) (8) (3) (11)
Balance as of 1/1/20184) 1,000 2,345 4,690 (196) n/a 10 (22) 7 7,834 1,282 9,116
Group profit or loss 753 n/a 753 351 1,104
Other comprehensive income (67) 110 n/a 3 19 (2) 63 17 80
Group total comprehensive income 686 110 n/a 3 19 (2) 816 368 1,184
Dividend distributions (180) n/a (180) (293) (473)
Changes in ownership
interests in subsidiaries
that do not result
in a loss of control
6 1 n/a 7 (8) (1)
Equity transactions with shareholders (174) 1 n/a (173) (301) (474)
Other changes (2) n/a (1) (3) 15 12
Balance as of 12/31/2018 1,000 2,345 5,200 (85) n/a 12 (3) 5 8,474 1,364 9,838

Segment Information (Continuing Operations)

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RTL GroupPenguin Random
House
Gruner+ JahrBMGArvatoBertelsmann
Printing Group
Bertelsmann
Education Group
Bertelsmann
Investments2)
Total divisionsCorporateConsolidationContinuing
operations
in € millions201820172018201720182017201820172018201720182017201820172018201720182017201820172018201720182017
Revenues from external customers6,4946,3583,4243,3591,4201,4935425044,0333,7541,4681,4982571891217,65017,155233517,67317,190
Intersegment revenues1115202033676917118312732903239(305)(329)
Divisional revenues6,5056,3733,4243,3591,4401,5135455074,1003,8231,6391,6812581891217,92317,4455574(305)(329)17,67317,190
 
Operating EBITDA1,4021,47852852114014512210437732085118373(3)(3)2,6882,686(95)(53)(7)32,5862,636
 
EBITDA margin1)21.5 %23.2 %15.4 %15.5 %9.7 %9.6 %22.5 %20.5 %9.2 %8.4 %5.2 %7.0 %14.5 %1.8 %25.8 %n/a15.0 %15.4 %n/an/an/an/a14.6 %15.3 %
 
Impairment (-)/reversals (+) on intangible assets and property, plant and equipment(105)(3)(46)(32)(6)(2)(3)(25)(185)(37)2(183)(37)
 
Results from investments accounted for using the equity method5869(2)9879(5)(16)(10)(6)5764(1)5763
 
Invested capital6,4386,5642,3702,3096676901,8851,8161,6191,6731871721,42290489957615,48714,70412499(21)(36)15,59014,767

Reconciliation to Operating EBITDA (Continuing Operations)

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in € millions20182017
EBIT from continuing operations1,6201,896
Special items
– impairment on goodwill and other intangible assets with indefinite useful life as well as gains from business combinations17330
– adjustment to carrying amounts on assets held for sale64
– impairment on other financial assets at amortized cost20
– impairment and reversals on investments accounted for using the equity method250
– results from disposals of investments(6)(182)
– fair value measurement of investments(157)(15)
– restructuring and other special items278176
Amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment847691
Adjustments on amortization/depreciation, impairment and reversals on intangible assets and property, plant and equipment included in special items(177)(34)
Operating EBITDA from continuing operations2,5862,636

Information by Geographical Areas (Continuing Operations)

 

GermanyFranceUnited KingdomOther European
countries
United StatesOther countriesContinuing
operations
in € millions20182017201820172018201720182017201820172018201720182017
Revenues from external customers5,8595,8402,3362,3061,1521,1693,3363,2123,8963,5261,0941,13717,67317,190
Non-current assets1)3,2203,2311,0921,1801,3011,3243,2673,2913,5142,94727724712,67112,220

Information on Revenue Sources (Continuing Operations)

 

Own products and
merchandise
ServicesAdvertisingRights and licensesContinuing
operations
in € millions2018201720182017201820172018201720182017
Revenues from
external customers
4,3494,3356,3756,0734,0614,4062,8882,37617,67317,190