German-based global media company Axel Springer, which operates a number of leading property and jobs classifieds sites throughout Europe, has reported a 7 per cent revenue increase during its third quarter, attributing the positive results to its digital business model.
The company press release notes that the group has recently changed the names of its digital operating segments in the third quarter of 2017; its business activities now categorized into the segments Classifieds Media (formerly Classified Ad Models), News Media (formerly Paid Models) and Marketing Media (formerly Marketing Models).
In the first nine months Axel Springer reports that it grew organically by 11.7 percent and accounted for 70.6 percent of total revenues. The EBITDA of digital media rose by 24.4 percent from EUR 328.1 million to EUR 408.0 million. The share of digital business in Group EBITDA increased considerably to 77.1 percent (PY: 72.4 percent).
Dr Mathias Döpfner, Chief Executive Officer of Axel Springer SE commented on the company's third quarter results.
“Once again we have grown in all operating segments. Classifieds Media continued to be the strongest driver of this growth,"Döpfner said.
"We are also particularly pleased with the rise in revenues and earnings for News Media. The continued success of BUSINESS INSIDER and the extraordinarily good development in the advertising market – particularly with BILD – played a defining role here. Based on the strong developments in the first nine months, we are optimistic for the last weeks of this year. We therefore confirm our forecast.”
Revenues in the Classifieds Media segment increased in the first nine months by 15.5 percent to EUR 745.3 million (PY: EUR 645.0 million). This was mainly attributable to job and real estate portals. The consolidation effects resulting, in particular, from the integration of Land & Leisure were also a factor. Adjusted for consolidation and currency effects, Classifieds Media’s revenues increased by 12.9 percent. The EBITDA of the segment increased considerably by 17.7 percent to EUR 307.6 million (PY: EUR 261.4 million). Adjusted for consolidation and currency effects, the EBITDA increased by 15.4 percent. With an improved EBITDA margin of 41.3 percent (PY: 40.5 percent), Classifieds Media remained highly profitable.