Radio Ga Ga

Research evidence excerpt

Radio Ga Ga

FICC Research

Credit Research

10 July 2026

Bertelsmann (BERTEL)

Bertelsmann has a broad portfolio across media and services

with reduced exposure to broadcasting. The Concord deal will

strengthen diversification while driving releveraging, leaving Victoria Adé + 33 (0) 14458 8939

no headroom in its mid-BBB. Given expected new supply and victoria.ade@barclays.com

tight valuations, we initiate with an Underweight rating. BBI, Paris

Corporate Hybrids Strategy

Barclays rating: Initiate at Underweight Franck Bataille

+33 (0) 14458 3221S&P/Moody's: BBB Stable/Baa2 Stable

franck.bataille@barclays.com

Trade ideas: switch out of BERTEL 3.5% 29s into WKLNA 3.25% 29s; switch out of BERTEL 1.5% BBI, Paris

30s into PUBFP 1.75% 31s and switch out of BERTEL 3.75% 34s into UNIMUS 4.125% 36s

Parikshit Budhe

• Diversified portfolio provides some resilience amid legacy headwinds. Bertelsmann + 91 (0) 22 6175 1815

benefits from a large and diversified portfolio across media and services. In line with its parikshit.budhe@barclays.com

Barclays, UK Boost+ strategy, the group has been diversifying away from traditional broadcasting

revenues, with growing exposure to segments such as music, services and education. This

diversification has helped mitigate headwinds from the structurally declining broadcasting

business and supported low-single-digit organic revenue growth at the group level. After a

solid start to the year, we expect Bertelsmann to deliver organic growth in FY 26, while

reported revenue should also benefit from the consolidation of recent acquisitions (Sky

DACH, Concord).

• Releveraging but still in rhythm with its mid-BBB rating. In April 2026, Bertelsmann

announced the combination of its music arm, BMG, with Concord to create the fourth-largest