Axel Springer’s net income drops

Decline of 45 per cent in 2009

The net income of German publisher Axel Springer declined by 45 per cent in 2009 to €314m ($427m), even as it booked an operating profit of €334m.

Axel Springer said the drop in demand for newspapers and magazines was partially mitigated by the new internet revenues.

The company expects newspaper circulation to fall further, forcing it to raise the price for many titles. However, it remains positive about advertising revenues.

Chief executive Mathias Doepfner said Axel Springer is keen to increase the operating profit by 10 per cent through operational improvements, cost discipline and restructuring measures. He added that they are actively considering introducing paywalls for online content.

Axel owns nearly 170 titles and operates in 35 countries around the world.