Revenue of German publishing giant Springer sharply slowed in the first half of the year

The German publishing group Axel Springer reported preliminarily on Tuesday a modest revenue growth in the first half of the year, highlighting ‘weaker advertising markets’, particularly in the U.S.

In the period from January to June, revenue increased by 1.4 percent, to 1.9 billion euros, the company estimates.

Last year, it surged by approximately 13 percent, to 3.9 billion euros.

The comparison shows that the group should only reach last year’s revenue this year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were, however, 12.8 percent higher in the first half of the year than in the same period last year.

– Axel Springer grew in the first half of the year, despite a challenging economic environment – said CEO Mathias Döpfner.

Business results in the journalism department remained at last year’s level, the publishing giant emphasized, noting ‘a very challenging market environment and weaker advertising markets, especially in the U.S.’.

Springer acquired the American media company Politico in 2021, which was founded by former Washington Post journalists ahead of the 2008 U.S. presidential elections to track the political scene in Washington in the style of sports journalism, which requires speed, analytical skills, and precision.

In the meantime, Politico has focused on Brussels, and Springer states that ‘due to continuous investments in journalistic quality, the adjusted EBITDA of American media brands (in the first half of the year) was below last year’s level’.

In the spring, Springer announced job cuts in the high-circulation German newspapers Bild and Welt and an increased reliance on artificial intelligence.

– Journalistic production is becoming a byproduct, increasingly relying on technical support and automation – said CEO Mathias Döpfner on that occasion.

The company currently employs 18,000 people worldwide, including 3,400 journalists, and more than half of its employees work outside Germany.

Springer’s portfolio includes a range of media houses, including Bild, Welt, and Insider, and the company is present in over 40 countries, building a media empire for its owner, the 48 percent stake held by the American investment fund KKR.