The improvement of the general economic situation in Germany during the year 2006 is a result of increased exports as well as an increase in domestic demand. The gross domestic product rose by 2.7 per cent, consumer spending by private households rose by 0.8 per cent in real terms (source: German Federal Statistical Office).

Against this background, Hubert Burda Media developed as planned on the domestic market with the digital and the publishing divisions as the strongest growth drivers. Due to the investments and acquisitions of the previous years and the business year 2006, foreign activities were highly succesful, above all those in Eastern Europe where the core business was systematically strengthened and secondary activities were streamlined. Therefore the sale of shares in companies located in Slovenia, Croatia and Serbia at the beginning of the year 2006 had a positive effect on the consilidated financial result.

The operating performance rose by 4.3 per cent, from € 2,061.5m to € 2,150.9m. Consolidated group turnover (external sales) increased by 5.1 per cent, from € 1,524.5m to € 1,602.9m.

Hubert Burda Media invested € 141.9m (2005: €200.3m). The investment in fixed assets reached € 129.5 (2005: €173.1m), thereof € 20.2m in financial assets (2005: € 32.3m). €12.4m were invested in new activities (2005: €27.2m).

At € 1,044.0m (2005: 1,003.8), the magazines accounted for 65.1 per cent (2005: 65.9 per cent) of external sales, the digital sector with € 230.7m (2005: €174.3) for 14.4 per cent (2005: 11.4 per cent), printing with €166.3m (2005: € 173.8m) for 10.4 per cent (2005: 11.4 per cent), direct marketing with €157.5m (2005: 158.6m) for 9.8 per cent (2005: 10.4 per cent) and other activities with € 4.4m (2005: € 3.3m) for 0.3 per cent (2005: 0.2 per cent). In the previous year, the newspapers wich have meanwhile been sold were included pro rata temporis at € 10.7m (2005: 0.7 per cent of external sales).

The consolidated operating results developed positively due to, among other things, the consistent cost discipline and the implemented restructuring measures. This strategy will be remain unchanged.

At the end of the year 2006, Hubert Burda Media employed a worforce of 7.084 people.