FRANKFURT: German media giant Axel Springer said Tuesday that profits rose strongly in the second quarter, driven by its booming digital business.
"In the second quarter of the current financial year, Axel Springer's operating results continued the dynamic growth trend of the first three months, thanks in large part to consistently strong growth in its digital activities," the group said in a statement.
"The effects of the ongoing transformation are evident. The revenue and earnings contributions of our digital activities are growing, and they are still the main driver of sustainable, profitable growth," said chief executive Mathias Doepfner.
Springer, which publishes the mass-circulation daily Bild and the conservative broadsheet Die Welt, said that bottom-line net profit rose by 0.9 percent to 76.5 million euros ($102.7 million) in the period from April to June.
Underlying or operating profit was up 8.2 percent at 147.8 million euros and revenues climbed by 8.0 percent to 744.4 million euros.
Looking ahead, Springer confirmed its full-year targets, predicting that total revenues would rise "by an amount in the middle single-digit percentage range," or around 5.0 percent.
Lower circulation revenues would be "more than offset by higher advertising revenues and other revenues," the statement said.
In terms of earnings growth, underlying or operating profit was projected to rise "by an amount in the low double-digit percentage range," or at least 10 percent, Springer said.
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