Shares of Axel Springer AG (AXELF.PK) declined around 5 percent in the morning trade on Frankfurt's Xetra after the German media holding company said it expects a single-digit percentage decrease in fiscal 2013 EBITDA, a key earnings metric, after reporting lower profit in fiscal 2012. The company also announced a flat dividend of 1.70 euros per share for the year.
The projected decline in earnings reflects the company's plan to increase its investments for expanding the digital business and for structural adjustments in the print business in financial year 2013. Meanwhile, the company anticipates a low single-digit percentage increase in total revenues, assuming that the structurally declining trends of the print business do not worsen considerably. The expected decrease in circulation revenues will be more than offset by the planned increase in advertising revenues and by constant other revenues, Axel said.
In its fiscal 2012, consolidated net income declined 4.7 percent to 275.8 million euros from 289.4 million euros last year. On a per-share basis, earnings dropped to 2.41 euros from 2.62 euros last year.
Adjusted earnings, which excluded significant non-operating effects, were 347.9 million euros, 1.3 percent higher than last year, while adjusted earnings per share dropped to 3 euros from last year's 3.03 euros.
Axel Springer's adjusted earnings before interest, taxes, depreciation, and amortization or EBITDA, increased 5.8 percent to 628 million euros, and EBITDA margin rose to 19 percent from 18.6 percent. The company attributed the earnings growth largely to the increased profitability of Digital Media segment. Also, Axel Springer's national print media remained highly profitable despite declining circulation and advertising revenues.
Consolidated revenues rose 3.9 percent to 3.31 billion euros from last year's 3.18 billion euros. Digital Media segment, with a 22 percent increase in revenues, overtook the company's national newspapers as its biggest revenue contributor, for the first time ever.
Adjusted for consolidation and currency effects, Axel Springer generated a slight revenue increase of 0.2 percent.
Chief Executive Officer Mathias Döpfner said, "From this strong position, we will pursue the digitization of our business with even more speed and vigor. We intend to accelerate the digital transformation of the entire Group, in order to further bolster our position of digitization pioneers. … Although our print media will continue to make an important contribution to the success of our business for a long time, our goal is clear: We want to become the leading digital media group."
On Frankfurt's Xetra, Axel Springer shares are currently trading at 34.55 euros, down 1.74 euros or 4.78 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.