FRANKFURT, Germany – Bertelsmann AG, the owner of book publisher Random House, said Thursday that its six-month net profit soared dramatically from a year ago – though a higher euro hurt sales at its units.

The privately held company earned euro284 million ($419.4 million) in the January-June period, compared with a loss of euro51 million a year earlier. The company did not break down its second-quarter profit figures.

Sales slipped lower to euro7.6 billion ($11.2 billion) in the six-month period, compared with euro7.7 billion a year ago, a reflection of the strong euro which hit a record high of $1.6038 in July, as well as a drop in sales at Random House and its former Direct Group.

The Direct Group – which operated book, music and DVD clubs, including Columbia House – saw its sales drop as consumers more and more favor digital downloads.

Bertelsmann chief executive Hartmut Ostrowski made good on his promise to trim the company's units, selling its North American book club business, include Columbia House and the Book-of-the-Month Club, in July to the privately held Phoenix, Arizona-based Najafi Companies. Terms of that deal were not disclosed.

Bertelsmann said it would sell off its Direct Group book and music clubs in several regions, including some countries in Europe and Australia.

Bertelsmann plans to keep hold of Direct Group's businesses in German- and French-speaking regions as well as Italy, Portugal and Spain, concentrating on the larger markets in Europe.

“In view of the difficult economic conditions, we are satisfied with our business performance for the first six months of the year,” Ostrowski said. “Strategically, we are now concentrating on growth initiatives, following the portfolio measures, in order to sustainably increase the value of our enterprise.”

To that end, Ostrowski said Bertelsmann would emphasize expanding and strengthening Bertelsmann's remaining units, along with looking for targets, particularly in growing markets in eastern Europe and Asia, with an eye toward digital distribution, the Internet and cell phones.

“In these areas, all of our businesses are displaying a high level of creativity and entrepreneurial drive,” Ostrowski said.

Earlier this month, Sony Corp. said it would buy Bertelsmann out of their 50-50 music venture Sony BMG for $900 million (euro609.5 million), giving it full ownership of a roster of artists including Alicia Keys and the increased ability to leverage music over an array of electronic devices.

Bertelsmann will take over a limited amount of selected European music catalog assets from Sony BMG, which represents about $20 million (euro13.5 million), or less than 1 percent of Sony BMG's revenue last year.

Besides Random House, Bertelsmann's interests range to radio and television, including broadcaster RTL, magazines and media services.

Though Bertelsmann is headquartered in Guetersloh, Germany, most of its 97,000 employees are scattered over its divisions. The company is controlled by the Mohn family, directly and through a foundation.

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