(MENAFN- AFP) German media giant Bertelsmann said Tuesday that the costs of its strategic reorientation hit its bottom-line in 2014, but would begin to bear fruit this year.
Bertelsmann said in a statement that its net profit fell by 35 percent to 573 million euros ($615 million) in 2014, as a result of 600 million euros in one-off charges.
These were connected with the "downscaling the print and direct-marketing businesses, expenditures on profit-improvement measures and a writedown on the Hungarian television business," Bertelsmann explained.
In addition, the previous year's figures had not been affected by any special items.
Underlying or operating profit increased by 2.7 percent to 2.374 million euros and revenues grew by 3.1 percent to 16.675 billion euros, both the highest in seven years, the company said.
Last year "was a gratifying year for us. Our revenue is the highest it has been in seven years. The same goes for our operating result -- it is one of the best in Bertelsmann's history," boasted chief executive Thomas Rabe.
Looking ahead, Rabe said that Bertelsmann "is on an expansionist course –- we have started this year off nicely."
Given the ongoing transformation of the group, "we expect higher revenues and higher operating (profit) in 2015," he continued.
"We want to significantly increase our group profit to one billion euros in the medium term," Rabe added.
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