Bertelsmann Posts 1st Half Losses
September 4, 2007 at 6:02 AM (PT)
BERTELSMANN AG posted a first-half net loss on costs to settle lawsuits related to music downloading platform NAPSTER as well as other one-time effects.
The net loss came to EU51 million in the six months through JUNE 30th, compared with a year-earlier profit of EU258 million. One-time charges came to EU297 million, compared with EU8 million last year. BERTELSMANN did not say for how much of the charges settlements accounted.
EMI, VIVENDI's UNIVERSAL MUSIC GROUP and a group of music publishers sued BERTELSMANN in the US in 2003, saying BERTELSMANN infringed on copyright regulations because it invested in NAPSTER, which was letting internet users share songs illegally.
Sales slipped to EU8.96 billion from EU9.14 billion as revenue from RANDOM HOUSE and BMG declined. Music producer BMG also recorded a decline in sales due to the deconsolidation of BMG MUSIC PUBLISHING at the end of 2006 and a 12% decline in the overall market.