March 26 (Reuters) -

German media group Bertelsmann on Tuesday lowered

its outlook for 2026 and now targets revenue of around 21

billion euros ($22.8 billion) and operating EBITDA of around 3.4

billion euros by that point.

This time last year, the privately-owned German group, whose

brands include music business BMG and trade publisher Penguin

Random House, said it aimed to increase revenues to 24 billion

euros and earnings before interest, taxes, depreciation, and

amortization (EBITDA) to 4 billion euros by 2026.

In a press release, CEO Thomas Rabe attributed the updated

forecast to the sale of staff outsourcing company Majorel and

the planned sales of RTL Nederland and regional newspaper

publisher DDV Mediengruppe.

The parent company of German broadcaster RTL

posted a 26% increase in group profit last year, supported by

proceeds from the sale of Majorel.

When it comes to 2024, Rabe said in an interview that

the company had a good start in the first quarter. He added that

"inflation is also falling and purchasing power is rising again

- in Germany as well."

In a conference call on Tuesday, Rabe added that

Bertelsmann's strategy does not focus on big M&A projects in the

billion euro range but rather on small and medium acquisitions

to support existing businesses.

Bertelsmann reported flat revenues year-on-year as the

growth in its book publishing, music and education businesses

was offset by a weak TV ad market.

Revenues of the German media company stood at 20.2 billion

euros in 2023, down 0.4% from the previous year's figure and

broadly in line with the company's expectations.

Media companies had to deal with fewer ad sales in the past

years, as inflation and higher energy prices led to firms

cutting back on ad spending.

U.S. peer Paramount reported a quarterly profit

above expectations at the end of February as streaming gains

helped overshadow the weak advertising market.