Bertelsmann 2016 core profit rises 3.3 percent on TV, music, services

Pencils with the logo of German media group Bertelsmann CEO are seen at the annual news conference Berlin, Germany, March 22, 2016. REUTERS/Fabrizio Bensch/File Photo

BERLIN (Reuters) - German media conglomerate Bertelsmann reported a rise in 2016 core profit, helped by its television, music and technical services businesses.

Operating EBITDA from continuing operations rose to 2.57 billion euros ($2.79 billion) in 2016 from 2.47 billion euros in the previous year, Bertelsmann said on Tuesday.

Sales meanwhile slipped to 16.95 billion euros from 17.14 billion euros due to disposals and the impact of foreign exchange rates.

Bertelsmann said it expected revenues to rise and profit margins to widen this year. Net profit will remain above 1 billion euros, it said.

The company is in the process of buying part of Pearson’s stake in publisher Penguin Random House.

Chief Executive Thomas Rabe told journalists that bankers were now establishing the valuation of the company, in a process he said was not likely to end before the European summer.

Reporting by Harro ten Wolde; Editing by Maria Sheahan