Hubert Burda Media
04/15/2019

Burda invests in innovative business models

Hubert Burda Media
04/15/2019

Burda invests in innovative business models

  • Turnover of €2.664 billion in the 2018 financial year
  • Digital business shows particular growth
  • Staff level rises to 12,369
  • €195 million invested in new businesses

The 2018 financial year has proved a success for Hubert Burda Media. With consolidated external turnover of €2.664 billion, the company has repeated the previous year’s result. In 2018, Burda invested a total of €195 million in existing and new digital business models.

Sustainable Growth in Digital Businesses

National Digital Brands grew by almost 5 percent in 2018 and now accounts for 55 percent of total turnover. New Work SE enjoyed the greatest increase in turnover, expanding the field of e-recruiting significantly and sustainably with Xing. The companies Cyberport and Computeruniverse performed well in E-Commerce. The platform Jameda continued to build on its leading position in digital doctor/patient communication. HolidayCheck Group AG significantly increased turnover and results by consistently focusing on the needs of tourists and technologies adapted to those needs.

The digital publisher BurdaForward expanded its platform business in 2018. Several publishers and media brands joined the new publisher network. Their content is displayed on the BurdaForward platforms equally with articles produced in-house.

Healthy Publishing Business in Germany

National Media Brands, Burda’s German publishing arm, operates a variety of sustainable business models in all five publishing units, aiming to gradually become independent of the advertising market. This division generated turnover of €650 million in 2018, slightly below last year’s result. Blue Ocean enjoyed further growth (based on sales revenues) through its children’s media and international licenses for magazines. Blue Ocean continued its international expansion in 2018, acquiring a Spanish children’s magazine publisher among others.

Immediate Media expands UK operations

The majority of the €413 million turnover recorded by the International Media Brands division came from Immediate Media, a group focused on magazines and digital consumer business in the UK. In 2018, Immediate Media acquired BBC Good Food, the biggest British food media brand, from BBC Studios. This includes its digital and events business, making Burda the biggest food publisher in the UK. In contrast, sales revenue decreased in Eastern Europe and Turkey, both markets that have become consistently unpredictable.

Investments in International Media & Tech Companies

BurdaPrincipal Investments, Burda’s international investment arm, provides long-term growth capital for fast-growing technology and media companies. It increased its investments in Germany, the UK and Asia in 2018, including the Asian fashion platform Zilingo and the British online flower delivery service Bloom & Wild. New investments include Carsome, Asia’s leading used car platform, and the e-learning platform Skillshare. In Germany, further investments were made in the rapidly growing neighbourhood network Nebenan.de.

At €130 million, sales revenue in the Print division (European gravure printing business) was lower than the previous year due to reductions in services, a lower volume of orders, and price declines.

In 2018, Burda’s portfolio contained around 600 products in Germany and 17 other countries. The group’s key sources of revenue are trading turnover (individual sales, subscriptions, and e-commerce), commission models, advertising and B2B services. Burda sees itself as a “company for entrepreneurs” and is organised into decentralised profit centres within Hubert Burda Media Holding. At the end of the last financial year, the consolidation scope included a total of 256 companies, 146 in Germany and 110 in other countries. At the end of the year, the group employed 12,369 people.

Overview

 

2017

2018

Change

 

€ million

in %

€ million

in %

ACTUAL (in %)

National Digital Brands

1,402.8

52.5

1,471.2

55.2

4.9

National Media Brands

670.4

25.1

650.9

24.4

-2.9

International Media Brands

454.9

17.0

413.0

15.5

-9.2

Print

130.2

4.9

116.5

4.4

-10.5

Other

13.5

0.5

12.6

0.5

-6.7

Sales revenue

 

2,671.8

100

2,664.2

100

-0.3

 

PDF

Related articles

BurdaPrincipal Investments

International Get-Together at Lake Tegernsee

BurdaPrincipal Investments

International Get-Together at Lake Tegernsee

From 15 to 16 October, BurdaPrincipal Investments (BPI) took off to Lake Tegernsee: Board Member Martin Weiss and BPI Managing Director Christian Teichmann had invited to the second BPI portfolio conference.

BurdaPrincipal Investments

Burda invests in co-living operator Hmlet

BurdaPrincipal Investments

Burda invests in co-living operator Hmlet

Hubert Burda Media announced an investment in Hmlet, a Singapore-headquartered co-living operator.

ADAC & Burda

Strategic partnership for new “ADAC Motorwelt” magazine

ADAC & Burda

Strategic partnership for new “ADAC Motorwelt” magazine

The General German Automobile Club (ADAC) is revamping its members’ magazine, “ADAC Motorwelt”, Europe’s biggest magazine. The club entered into a strategic collaboration with Hubert Burda Media to make this happen.