Press release

Gruner + Jahr: Successful in core business – G+J increases revenues in first half of 2011 – results remain on high level

Hamburg, 31 August 2011 –

Group revenues at Gruner + Jahr rose considerably year-on-year to ;euro; 1,250 million (2010: ;euro; 1,217 million) while operating EBIT remained almost the same as in 2010. G+J generated an operating EBIT adjusted for one-off effects, of ;euro; 126 million compared to ;euro; 130 million in 2010. This is a very positive result, especially considering the rise in paper prices. G+J again achieved a return of 10.1 % (2010: 10.7 %) despite inconsistent developments in the global markets relevant to the company.
Distribution and advertising revenues rose globally, with distribution revenues alone going up by around ;euro; 5 million to ;euro; 390 million (previous year: ;euro; 385 million). Advertising revenues developed inconsistently around the world, totalling ;euro; 383 million in the first half of 2011 (2010: ;euro; 382 million).
Net of special items and one-off effects, Gruner + Jahr's EBIT amounted to ;euro; 123 million in the first half of 2011 (previous year: ;euro; 125 million).
Gruner + Jahr continues to consistently restructure and expand its core business and invest in quality journalism
Germany continued to develop positively, while France also recorded pleasing growth in revenues and improved results due to a more upbeat general economic environment as well as successfully implemented structural measures. The Spanish market remains difficult, with the advertising business of the title families almost reaching last year's level again. Revenue development in Austria continues to be largely stable and China is still growing strongly.
The consistently continued rebuilding of G+Js score business, which began in autumn 2008 on a national and international level, is showing long-term effects. By implementing specifically tailored measures locally, the company has managed to considerably lower its costs without compromising on the quality and relevance of its journalistic products in the print as well as online business. The publisher's magazines and newspapers are in excellent shape and theirjournalistic content is of the highest quality.
New magazines launched in 2011 such as YUNO, ;Ccedil;A M'INTERESSE VIVRE MIEUX, GEO SAVOIR and WOMEN'S HEALTH, the acquisition of a majority share in GRAZIA, the magazines' optimisation, which was carried out in large parts of the national and international portfolio, as well as improvements in layout and title design show clearly that G+J is still investing in its core business and continues to deliver quality journalism.
G+J was able to further invest in defined growth markets on account of the positive results in the first half of 2011. Only a few weeks ago, the company entered the Indian market by taking over a majority share in the publishing company MaxPosure, which operates in the consumer and corporate publishing sectors.
In the first half of the year, the company acquired a further 34 national and international customers and projects in corporate publishing. In Germany, G+J Corporate Editors received 26 awards for outstanding creativity and quality in the corporate publishing sector in the first two quarters of 2011 alone.
G+J continues to focus on strong brands and their relevant online content for its digital business. All activities have the objective of ensuring the re-financing of high-quality journalistic online content with a mix of varying revenues growth models. G+J EMS' digital advertising business and the continuing internationalisation of the EMS subsidiary Ligatus are generating considerable growth in revenues in this strategic field of expansion.
Revenues generated by the printing business of Prinovis and Brown Printing slightly increased in the reporting period, while results dropped. Dresdner Druck- und Verlagshaus' performance was as strong as in previous years.
Gruner + Jahr is still on track
Dr. Bernd Buchholz, Chief Executive Officer and CEO of Gruner + Jahr AG comments: "The extremely positive results in the first half of 2011 prove the success of Gruner + Jahr and also confirm that we are on the right track with our strategy. Our restructuring measures have been successful and we will continue to consistently implement them. Together with the positive development in the fields of online advertising, Asia and corporate publishing, all of which we are expanding, this shows that G+J is moving in the right direction."
Turning to the development of G+J in the markets, he continues: "As in the previous year, we are noticing inconsistent developments in our core markets. G+J once again recorded solid growth in Germany, Austria remains at a high level and France continues to develop extremely positively. The Spanish market still had its difficulties, especially in terms of sales, while the advertising business of the title families almost reached last year's level again. Eastern Europe generally continues to be a difficult market environment. Growth in China, on the other hand, remains strong."
Claus-Peter Schrack
Executive Vice President, Corporate Communications
Phone: +49 (0) 40 / 37 03 – 31 13
Telefax: +49 (0) 40 / 37 03 – 56 17

Dr. Bernd Buchholz