23.08.2016
Bastei Lübbe AG DE000A1X3YY0
DGAP-News: Bastei Lübbe AG amends scope of consolidation for the 2015/2016 accounts
DGAP-News: Bastei Lübbe AG / Key word(s): Miscellaneous
Bastei Lübbe AG amends scope of consolidation for the 2015/2016 accounts
23.08.2016 / 10:30
The issuer is solely responsible for the content of this announcement.
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Press Release
Bastei Lübbe AG amends scope of consolidation for the 2015/2016 accounts
Cologne, 23 August 2016. In consultation with the audit firm KPMG, Bastei
Lübbe AG, which is listed in the Prime Standard of the Frankfurt Stock
Exchange (ISIN DE000A1X3YY0), will amend the scope of consolidation for its
consolidated financial statements and retroactively fully consolidate the
British Blue Sky Tech Ventures and the investments pooled thereunder. For
this purpose, both the consolidated financial statements for the 2015/2016
financial year according to IFRS and the 2015/2016 separate financial
statements according HGB will be adjusted accordingly.
The adjustments are based on a changed assessment on the part of the
auditor KPMG with regard to the investments "Daedalic Entertainment GmbH"
and "oolipo AG" and the relationship with the British Blue Sky Tech
Ventures. KPMG has now reassessed the relationship with Blue Sky, which
acquired 55 % of the shares in oolipo AG (formerly Beam AG) with effect as
of 31 March 2015 and 3 % of the shares in Daedalic Entertainment GmbH (with
an option for a further 5 %) with effect as of 17 September 2015. Due to
various rights arising from the purchase agreement between Bastei Lübbe and
Blue Sky, Bastei Lübbe AG reportedly has economic control over Blue Sky as
defined by IFRS 10. After examining the purchase agreement again,
therefore, the audit firm suddenly altered its assessment, which it had
independently attested in two consecutive audits of the corresponding
consolidated financial statements.
Specifically, KPMG justifies its reassessment on the basis of the
complexity of the accounting rules: "The transactions have an array of
features that make an accounting assessment difficult. The relevant
accounting standards are very complex." KPMG has now concluded that Bastei
Lübbe has economic "control over Blue Sky" - namely from the date of the
sale of the oolipo shares, i.e. since 31 March 2015. As Bastei Lübbe
controls Blue Sky, it must fully consolidate this investment and the
investments held by Blue Sky. There is now no basis for measuring oolipo
and Daedalic at fair value in connection with the sales of shares to Blue
Sky.
KPMG has asked Bastei Lübbe AG to accept this altered perspective and to
amend the 2015/2016 consolidated financial statements appropriately.
"Although we still do not understand why the auditor has now come to a
different conclusion than in the two previous audits, ultimately we must
trust the experts when it comes to international accounting rules. We feel
that this reassessment by KPMG requires us to alter our accounting
accordingly, even if this results in considerable administrative expense
and changes our earnings situation in the 2015/2016 financial year,"
explains Thomas Schierack, CEO of Bastei Lübbe AG.
Due to the re-consolidation of the investments, the valuations recognised
for the two entities for the last two financial years must be switched back
from the fair-value approach to the historical cost principle. As a result,
this will have the following effects on the financial statements according
to initial internal calculations: Earnings for the affected 2014/2015 and
2015/2016 financial years are likely to be around EUR 13-15 million lower
in total. Specifically, EBITDA of an estimated EUR 10-11 million remains
for the 2014/2015 financial year (instead of EUR 17.7 million before) and
of EUR 7-9 million for 2015/2016 (instead of EUR 14.9 million). Bastei
Lübbe AG thus has clearly positive earnings in both cases despite the
changes in the scope of consolidation.
Bastei Lübbe AG's new financial statements will now be prepared promptly,
KPMG will be engaged to audit them and then the Management and Supervisory
Boards will endorse them.
Due to the change in Bastei Lübbe AG's consolidated financial statements,
the Annual General Meeting cannot take place as scheduled. The Management
Board will cancel the Annual General Meeting called for 15 September 2016
and call a new Annual General Meeting for 30 November 2016 in compliance
with legal forms and deadlines.
About Bastei Lübbe AG:
Bastei Lübbe AG is an international media group based in Cologne. Its
business operations focus on developing and licensing content distributed
worldwide physically and digitally. The company's core business includes
the traditional publishing business and the periodical puzzle magazines and
novel booklets in the "Book" segment. With its twelve publishers and
imprints, the group of companies currently offers approximately 3,600
titles in fiction, non-fiction and books for children and young adults. In
the growing segment of hardcover fiction, the company has been the market
leader in Germany for many years. At the same time, Bastei Lübbe is driving
innovation in the field of digital media. As well as the production of
thousands of audio and e-books, the "Digital" segment also includes
holdings in the self-publishing platform "BookRix" and the renowned games
publisher "Daedalic Entertainment". Bastei Lübbe AG's value chain is
completed by the investment in the online shop "beam-ebooks.de" and the new
and internationally unique streaming platform "oolipo".
With currently 334 employees and an annual turnover of roughly EUR 102.5
million (financial year 2015/2016), Bastei Lübbe AG is the largest medium-
sized family company in the German publishing industry. Since 2013, the
company's shares have been listed in the Prime Standard of the Frankfurt
Stock Exchange (WKN A1X3YY, ISIN DE000A1X3YY0). Further information is
available at www.luebbe.de.
Contact Bastei Lübbe AG:
Barbara Fischer
Director / Vice President
Public Relations
Tel.: +49 (0) 221 / 82 00 28 50
E-mail: [email protected]
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23.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Bastei Lübbe AG
Schanzenstraße 6 - 20
51063 Köln
Germany
Phone: 02 21 / 82 00 - 0
Fax: 02 21 / 82 00 - 1900
E-mail: [email protected]
Internet: www.luebbe.de
ISIN: DE000A1X3YY0, DE000A1K0169
WKN: A1X3YY, A1K016
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
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