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Axel Springer Q1 Net Income Down 34.6%; Updates FY19 Outlook- Quick Facts

German media holding company Axel Springer SE (AXELF.PK) Tuesday reported that its consolidated net income for the first quarter of 2019 declined 34.6 percent to 55.4 million euros from 84.7 million euros in the year-ago period. Earnings per share decreased to 0.41 euros from 0.69 euros last year.

The prior-year figures included a significant one-time effect from the transfer of the Axel Springer high-rise in Berlin to the Axel Springer Pensionstreuhandverein.

Adjusted for non-recurring effects and amortization from purchase rice allocations, consolidated net income declined 7.2 percent to 75.1 million euros from 80.9 million euros in the prior-year period. Earnings per share were 0.57 euros, compared to 0.63 euros in the prior year, due to increased interests by other shareholders.

Earnings before interest, taxes, depreciation, and amortization, or EBITDA, adjusted for non-recurring effects, decreased 2.5 percent to 167.0 million euros.

Overall, the Group's revenues for the quarter decreased 0.2 percent to 771.8 million euros from 773.5 million euros in the year-ago period. Group revenues grew organically by 3.2 percent in the quarter.

Axel Springer noted that at the beginning of May, it announced the sale of its 51 percent majority stake in the @Leisure Group. Assuming that the transaction is completed as expected at the beginning of June 2019, this will result in adjustments to the Group forecast.

On completion, Axel Springer expects group revenues for the 2019 financial year to remain at the previous year's level. Earlier, the company forecast an increase in revenue in the low single-digit percentage range. Organically, the Group continues to expect growth in the low to mid-single-digit percentage range.

For adjusted EBITDA, Axel Springer continues to expect a figure at the prior-year level, while organic growth should remain in the low to mid-single-digit percentage range.

When the transaction is completed, the Group expects adjusted EBIT to decline to the low to mid-single-digit percentage range due to increased amortization. Previously, the company forecast a decline in adjusted EBIT in the low single-digit percentage range. Organically, growth in the low single-digit percentage range is still expected.

Axel Springer now forecasts adjusted earnings per share for the year to decline in the low single-digit percentage range when the transaction is completed, a figure between the previous year's level and a decline in the low single-digit percentage range that was previously forecast. In organic terms, the company expects adjusted earnings to rise in the single-digit percentage range.

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