FRANKFURT (Thomson Financial) - Axel Springer AG. plans to make acquisitions or found new units to expand its sports content, job sites and regional offerings on the internet, Chief Executive Michael Doepfner told Frankfurter Allgemeine Zeitung.
He said the company will continue shifting its business toward digital media after its failed attempt to enter Germany's letter-mail market with mail carrier PIN Group.
Axel Springer stopped funding PIN Group in December, after the German government decided to introduce minimum wages to the postal industry. The publishing giant posted a full-year 2007 net loss of 288 million euros after writing down the value of PIN Group.
'But we clearly addressed the problem, acted quickly and fully booked the write-downs in the fiscal year 2007,' Doepfner said.
'Axel Springer is now well-equipped with funds. We have a return on equity of 38 percent, high cash flow and a 1.5 billion euro credit line.'
Doepfner said Axel Springer now makes some 20 percent of its advertising revenue and 10 percent of its overall sales on the internet, putting it well ahead of peers with a smaller exposure to digital media.
Axel Springer may generate half of its sales online in 10 years, he said.
Asked whether Axel Springer would be interested in buying ProSiebenSat.1 Media AG.'s broadcast station Sat.1, Doepfner said he would be 'downright obliged' to take a close look at the unit.
However, ProSiebenSat.1 owner Permira brushed off speculation in May, saying it ruled out the sale of Sat.1. maria.sheahan@thomsonreuters.com mas/kf1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
