Bertelsmann’s Income to Rise

Bertelsmann, Germany’s biggest media company, expects its income from operations to rise to $3.1 billion, boosted by its television business.

Operating profit--earnings before interest, taxes and amortization--is expected to remain unchanged at about $940 million, said Bertelsmann spokesman Oliver Herrgesell. He would not provide comparable figures for 2000.

Sales are to rise 31%, to $18 billion.

Bertelsmann Chief Executive Thomas Middelhoff aims to reduce costs and combine more businesses to reach a return on sales of more than 10% in all units through 2004, ahead of a possible initial share sale to raise cash for acquisitions to keep up with rivals such as Vivendi Universal.

Also Friday, Bertelsmann promoted Michael Smellie, 47, to the new position of chief operating officer of its global music division, whose acts include Usher and the Dave Matthews Band. Smellie is seen as a replacement for chief administrative officer Konrad Hilbers, who resigned this week after five months on the job.