Bastei Lübbe with higher revenues in tandem with reduced profitability in a difficult market environment

Bastei Lübbe with higher revenues in tandem with reduced profitability in a difficult market environment
 

• Group revenues up 3.8%, rising to €118.4 million (previous year: €114.0 million)
• Group EBIT of €9.3 million with an EBIT margin of 7.9% (previous year: 15.0%)
• Forward-looking strategic investments in new and innovative products, markets and brands
• Dividend of 25 cents per share proposed (previous year: 36 cents)
• Outlook: stable revenues with a disproportionately sharp improvement in profitability in the 2026/2027 financial year

Cologne, 14 July 2026 – Bastei Lübbe AG, a general-interest publishing group listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN DE000A1X3YY0), continued to grow in a challenging market environment in the 2025/2026 financial year. The company benefited from an attractive catalogue of blockbuster releases by its established imprints while the LYX community brand, for example, was unable to repeat the previous year’s exceptional success with the Amazon Prime adaptation “Maxton Hall”, based on Mona Kasten’s novel “Save Me”. Accordingly, the share of revenues contributed by the community-driven business models also shrank by nine percentage points to 30% (previous year: 39%). According to the audited figures presented today, Group revenues increased by €4.4 million to €118.4 million (previous year: €114.0 million), thus matching the forecast that had been adjusted on 10 April 2026 (€118 – 119 million). Underpinned by print, audio and digital business, revenues were characterised by a broad basis across all play formats. The share of revenues from digital business continued to widen from 31% in the previous year to 32% in the 2025/2026 financial year.

On the other hand, a mix of lower-margin revenues and catalogues combined with higher production and royalty costs as well as revenue shortfalls in particularly high-margin business weighed on earnings. In addition, there were higher operating expenses and investments in new brands, markets and innovative formats. Consolidated EBIT dropped to €9.3 million (previous year: €17.1 million), falling slightly short of the adjusted forecast (€10 – 11 million). The EBIT margin also shrank accordingly, dropping to 7.9% (previous year: 15.0%).

“We continued our growth trajectory this year. In doing so, we expanded our business framework decisively through innovations and acquisitions, while simultaneously creating further impetus for growth that will give us a great deal of pleasure as we move forward. In addition to these investments, however, we had to accept lower-margin revenues in place of higher-margin ones due to market conditions, something which left traces on our earnings performance this year. However, we will be reversing this trend in the coming financial year and adjusting our earnings margin accordingly upwards,” explains Soheil Dastyari, CEO of Bastei Lübbe AG.

Positive impetus through numerous top-selling books, audio continuing to grow

In the Book segment, revenues rose from €107.0 million to €111.4 million. In particular, the successful new releases by the bestselling authors Dan Brown and Ken Follett published under the Lübbe imprint contributed to this. Revenues generated by the children’s book imprint Baumhaus were extremely strong, rising significantly by 20.0% thanks to the continued strong demand for Jeff Kinney’s “Diary of a Wimpy Kid” series. Other segments fell short of expectations in some respects. This also applied to the community-driven LYX, Community Editions and ONE business models, which all recorded lower revenues. This had been expected for LYX following the great success of the Amazon Prime adaptation of Mona Kasten’s novel “Save Me” under the title “Maxton Hall”, although it did turn out to be more pronounced than expected. The audio sector continued to expand, with revenues from downloads and streaming content 6.4% higher than in the previous year. One key driver was the highly successful marketing of digital products, while revenues from audiobook CDs flatlined. Revenue growth in the Book segment was also supported by the first-time full consolidation of Siebter Himmel Bastei Lübbe GmbH following its successful business expansion as well as the acquisition of Papertoons GmbH.

At €8.6 million, EBIT in the Book segment in the year under review was significantly down on the previous year’s figure of €16.2 million. Lower EBIT had been expected but turned out to be more pronounced than previously forecast. This is largely attributable to the unexpectedly muted revenue growth in high-margin segments, resulting in a lower gross margin than projected, coupled with relatively high production and royalty costs.

Revenues in the “Novel Booklets” segment amounted to €7.0 million, almost matching the previous year’s figure of €7.1 million, as expected. While the ongoing decline in the number of press retail outlets continued to exert pressure on physical revenues, slight revenue growth was achieved through the online shop and digital products. At €0.7 million, segment EBIT fell short of the previous year (€0.9 million) but exceeded the forecast of around €0.5 million. This was due in particular to a better-than-expected gross margin, which benefited from the lower costs of goods sold.

Profitability dragged down by revenue mix with smaller margins

Costs rose significantly more sharply than revenues in the 2025/2026 financial year, increasing by 11.5%. This was primarily attributable to the cost of materials, which climbed by €8.7 million from €55.5 million to €64.2 million in the year under review. This is largely attributable to the particularly high-quality and attractive catalogue during the year under review, which was characterised by a higher proportion of bestsellers by well-known authors with a wide readership, as well as by lavishly produced print editions of exceptional quality in terms of production and finishing. These catalogue priorities typically involve a higher ratio of material costs and lower margins. In addition, the unexpectedly muted revenue performance in particularly high-margin areas led to a further increase in the cost-of-materials ratio and thus weighed on the overall margin. Accordingly, the cost-of-materials ratio widened from 48.7% to 54.2%. At €22.7 million, staff costs were on a par with the previous year’s figure of €22.6 million. Other operating expenses climbed by €2.2 million from €20.8 million to €23.0 million in the year under review, primarily reflecting higher IT expenses as well as advertising and marketing expenses. Depreciation and amortisation climbed from €2.5 million in the previous year to €3.1 million in the year under review.

The increased operating expenses were also related to the publishing group’s forward-looking investments in new and innovative products, markets and brands. These are to boost revenue and earnings growth in the coming financial years. Examples include the new audiobook format shelfie.audio, which makes audiobooks physically tangible again, the new literary imprint Pfaueninsel, the acquisition of the first German manhwa and manga publisher Papertoons and the entry of the LYX community imprint into the US market.

Against this backdrop, the Group’s EBIT shrank to €9.3 million in the 2025/2026 financial year, down from €17.1 million in the previous year. Group earnings before taxes came to €9.1 million in the year under review (previous year: €16.5 million). After income taxes of €2.7 million (previous year: €5.1 million), Group net profit for the year reached €6.4 million (previous year: €11.4 million). Of this, €6.4 million (previous year: €11.3 million) is attributable to the equity holders of Bastei Lübbe AG. Accordingly, earnings per share came to €0.48, compared with € 0.86 in the previous year.

Cash flow from operating activities widened significantly from €-0.6 million in the previous year to €10.8 million during the year under review. In the previous year, cash flow had been significantly impacted by the outflow of funds resulting from the termination of the factoring programme. At €9.1 million, free cash flow (cash flow from operating activities plus cash flow from investing activities) was thus also well above the previous year (€-1.8 million), likewise exceeding the forecast (€7 – 9 million).

In the consolidated statement of financial position, non-current assets decreased to €49.8 million as of 31 March 2026 (31 March 2025: €56.6 million), mainly due to an impairment of €5.0 million recognised on the 20% stake in Räder GmbH. This impairment was included in other comprehensive income, without affecting profit or loss. With an equity ratio of 60.5% and net financial assets of € 11.7 million, the financial position remained very solid. Total assets stood at €109.0 million at the end of the 2025/2026 financial year (previous year: €114.3 million).

“In a challenging market environment, our profitability came under greater pressure than expected in the year under review. At the same time, we improved our free cash flow significantly. As a result, we additionally strengthened our financial flexibility and have the necessary scope to consistently pursue our strategic projects and to boost profitability again. With the dividend proposal of 25 cents per share, we want to give our shareholders a fair share of the company’s success again and are deliberately making full use of the scope of our dividend policy,” adds Mathis Gerkensmeyer, Chief Financial Officer of Bastei Lübbe AG.

Dividend proposal of 25 cents per share at the upper end of the dividend policy

At the annual general meeting on 9 September 2026, the Executive Board and the Supervisory Board will be asking the shareholders to approve the distribution of a dividend of 25 cents per share (previous year: 36 cents), equivalent to 50% of the distributable profit and thus at the upper end of the range defined by the company’s dividend policy (40 – 50%).

Slight revenue growth expected in tandem with significantly increased profitability

The combination of the book as an element of our cultural heritage and a source of entertainment with attractive digital e-book and audio products continues to yield business models that are full of promise and highly profitable, with a wide range of growth opportunities. For this reason, the Executive Board continues to expect rising revenues. The success of the LYX, ONE and pola imprints testifies to the wide-ranging opportunities and potential offered by community-driven models, which have been expanded to include the manhwa and manga genres with the launch of the new Papertoons imprint. The reorientation of the Lübbe imprint’s content is continuing. Pfaueninsel marked the successful launch of a new imprint in the literary entertainment sector. The profitability of the Community Editions and MOBA labels is expected to improve. The strategy is being implemented for e-books and audiobooks across all imprints. Here too, further growth is being budgeted and will be additionally supported by the new shelfie.audio product in the audiobook sector. The latest Siebten Himmel store opened in Leipzig is set to be additionally reinforced and will successfully complement the flagship stores in Cologne. In the “Novel Booklets” segment, the Executive Board projects lower earnings compared to the year under review due to the challenges facing press distribution.

Profitability is expected to increase significantly again following the decline in the year under review. In particular, the aim is to lower the cost of materials by optimising printing costs and reducing the proportion of royalties, thereby widening the gross margin once again. This will be supplemented by appropriate cost discipline across the entire Group. In terms of the catalogue, the 2026/2027 financial year has already commenced with a number of bestsellers, including a book about Pfaueninsel (Peacock Island) by Zeit publisher and bestselling author Florian Illies and the sensational debut “The Names” by Florence Knapp. New releases by other bestselling authors such as Julia Franck, Caroline Bernard or Rebecca F. Kuang are to follow. Social media greats such as Paluten, ViktoriaSarina and Carmushka will also be back. In addition, there will be numerous paperback reissues of the previous year’s major bestsellers: Dan Brown, Ken Follett, Rebecca Gablé and Holly Jackson are guaranteed to generate large print runs in this format. Award-winning thriller writer Vera Buck has signed with Lübbe. LYX, the publisher for New Adult fiction, has new releases by Lena Kiefer, Sarah Sprinz, Anabelle Stehl and Thea Guanzon, as well as the new Formula 1 romance “Champagne Problems” by international bestselling author Hannah Grace, the French New Adult series “Campus Driver” by C.S. Quill – which is set to be adapted into a series on Amazon Prime later this year – and the major BookTok sensation “Daggermouth” by H.M. Wolfe. Young Adult imprint ONE has already shot to number one on the Young Adult bestseller list with Katie Kento’s “Missing Page,” with new releases by Alexandra Moody, Kira Licht and Jessica Felleman planned. In the children’s book segment, Jeff Kinney will publish a new instalment of his globally successful “Diary of a Wimpy Kid” series as well as another volume of spooky stories told from the perspective of Greg’s best friend Rupert. In addition, there are new sequels featuring the apple witch “Petronella Apfelmus” by Sabine Städing and the lovable friends “Stock and Stein” by Anne-Kathrin Behl.

The Executive Board therefore forecasts Group revenues in a range of €118 – 122 million for the 2026/2027 financial year (year under review: €118.4 million). Of this, the “Book” segment will account for €111 – 115 million (year under review: €111.4 million) and the “Novel Booklets” segment for around €7 million (year under review: €7.0 million). Following the decline in the year under review, EBIT is expected to rise significantly more quickly than revenues in the 2026/2027 financial year, climbing by around 10 – 30%. The EBIT forecast is therefore for €10 – 12 million (previous year: €9.3 million). The expected EBIT margin is set to widen significantly once again, approaching the 10% mark. The target EBIT for the “Book” segment is €9.5 – 11.5 million (year under review: €8.6 million), EBIT in the “Novel Booklets” segment should come in at about €0.5 million (year under review: €0.7 million).

Bastei Lübbe AG’s annual report for the 2025/2026 financial year is available at www.bastei-luebbe.de.

About Bastei Lübbe AG:

Bastei Lübbe AG is the leading independent publishing group in Germany. Based in Cologne, it publishes books, audio books and e-books featuring high-quality popular entertainment as well as periodical novel booklets. In total, the Company owns more than 14 imprints. Bastei Lübbe sees itself as an innovation driver in the industry and has successfully established several rapidly expanding community-driven business models, among other things. Bastei Lübbe AG is also a pioneer of digital media, producing thousands of audio and eBooks, which are distributed via all digital exploitation channels. The Group generates annual revenues of over €118 million (2025/2026 financial year). Its shares have been listed in the Prime Standard of the Frankfurt Stock Exchange (WKN A1X3YY, ISIN DE000A1X3YY0) since 2013. Further information can be found at www.bastei-luebbe.de.

Contact Bastei Lübbe AG:

Julia Kikillis
Head of Press and Public Relations
Phone: +49 (0)221 8200 2850
E-Mail: julia.kikillis@bastei-luebbe.de