FRANKFURT (AFX) - Axel Springer AG chairman Mathias Doepfner said it plans to invest heavily in its internet services this year, a move that could put the brakes on earnings growth.
After achieving record earnings for the third year in a row in 2006, Springer sees stable or slightly higher earnings in 2007, due to its high level of investment in new projects, said Doepfner, speaking from the group's annual earnings news conference.
The group's objective for 2007 is 'steadfast expansion with a focus on the digital business,', Doepfner said, cautioning such a move could weigh on earnings.
'We anticipate that, with launch costs for new projects remaining on a high level, our 2007 earnings in the existing business will be at the same level as in the past year if not slightly higher. However, we have a lot on the agenda for 2007,' he added.
But if Axel Springer decides to implement the projects under review, there could be 'considerable demand' for additional funding, with resulting operating earnings coming in below last year's 374 mln eur, Doepfner said.
In 2006, net profit rose 26 percent to 291 mln eur on stable sales of 2.376 bln eur. krysia.diver@afxnews.com afp/kd/ms1 COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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