FRANKFURT, Aug 29 (Reuters) - Bertelsmann, Europe's largest media group, is aiming to cut costs by almost 1 billion euros ($1.44 billion) by the end of this year, German magazine Der Spiegel reported.
The owner of broadcaster RTL and publisher Random House said earlier this year it would focus on cost cuts to minimise the impact of the economic crisis after it posted a first-quarter net loss due to falling advertising revenues.
Bertelsmann generates around 30 percent of revenue from advertising and is due to report first-half results on Monday.
Der Spiegel magazine said on Saturday, without citing sources, that the company's service business, Arvato, would shoulder about 250 million euros of the cost cuts, while publisher Gruner+Jahr is seen to cut about 200 million euros in costs.
Bertelsmann's book club business aims to save about 50 million euros in costs by year-end, Der Spiegel said.
A Bertelsmann spokesman declined to comment on the report.
Arvato has become the group's fastest-growing business, branching out from media-related services into call centres, financial clearing houses and mobile services.
(Reporting by Nikola Rotscherorth) ($1=.6964 Euro) Keywords: BERTELSMANN/COSTS (eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The owner of broadcaster RTL and publisher Random House said earlier this year it would focus on cost cuts to minimise the impact of the economic crisis after it posted a first-quarter net loss due to falling advertising revenues.
Bertelsmann generates around 30 percent of revenue from advertising and is due to report first-half results on Monday.
Der Spiegel magazine said on Saturday, without citing sources, that the company's service business, Arvato, would shoulder about 250 million euros of the cost cuts, while publisher Gruner+Jahr is seen to cut about 200 million euros in costs.
Bertelsmann's book club business aims to save about 50 million euros in costs by year-end, Der Spiegel said.
A Bertelsmann spokesman declined to comment on the report.
Arvato has become the group's fastest-growing business, branching out from media-related services into call centres, financial clearing houses and mobile services.
(Reporting by Nikola Rotscherorth) ($1=.6964 Euro) Keywords: BERTELSMANN/COSTS (eva.kuehnen@thomsonreuters.com; +49 69 7565 1244; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.