Media giant Bertelsmann posts sharp drop in profit

0 Comments | AFP, March, 2008

FRANKFURT (AFP) — Bertelsmann, the fifth largest media group in the world and owner of broadcaster RTL, said Tuesday that profit fell sharply last year due to charges linked to problems with its book and DVD sales unit Direct Group.

Net profit at Bertelsmann, which is active in radio and television, publishing and music, fell to 405 million euros (640 million dollars) from 2.46 billion dollars, a statement said.

The results were hit by a writedown of 414 million euros on Direct Group, which is having problems with book, record and DVD clubs in the United States.

Bertelsmann finance director Thomas Rabe said that the unit's future was under consideration. CD sales would be terminated and the rest of Direct Group North America would be sold, a process due to...