Dow Jones Newswires: Axel Springer profit falls in nine-month period

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Axel Springer SE on Wednesday reported a drop in net profit in the first nine months of the year, with weaker-than-expected revenue development.

The German digital-publishing house’s SPR, +0.16%  net profit was 134.1 million euros ($148.9 million) in the period compared with EUR247.4 million a year earlier, in part due to expenses and other special effects, it said.

Adjusted earnings before interest, taxes, depreciation and amortization were EUR439.8 million, down from EUR541.4 million, in part due to consolidation effects, Springer said. Excluding consolidation and currency effects, adjusted Ebitda fell 15%, hit by provisions for restructuring.

Revenue was EUR2.26 billion, down from EUR2.33 billion. On an organic basis, revenue rose 0.2%.

“Despite weaker than expected revenue development, the company invested in existing activities in the first nine months of the year and also strengthened its position through complementary acquisitions,” Springer said.

Springer backed the 2019 forecast that it had cut earlier this year. It expects a low- to mid-single digit percentage revenue decrease, and a decline in adjusted Ebitda in a mid-teen percentage range.