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Axel Springer banks on online media, forecasts small growth

German media giant Axel Springer has forecast muted growth in sales this year

German media giant Axel Springer Thursday forecast muted growth in sales this year, after it accelerated the expansion of its digital business in 2015.

Digital revenues made up 62 percent of the total in 2015, the Berlin-based group said.

About 80 percent of its advertising revenues also came from its online business.

"Today Axel Springer is one of the world's largest digital publishers in terms of reach. We see considerable potential for the long-term increase in the value of our digital activities and will focus in 2016 on successfully developing the investments we have made in recent months," said Mathias Doepfner, chief executive of the group.

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The company, which had largely divested from print media with the exception of its key newspapers Bild and Die Welt, said its 2015 net profits soared 29.2 percent to 304.6 million euros ($331 million), although it had been boosted by exceptional financial gains.

Revenues rose 8.5 percent to 3.3 billion euros.

For 2016, the group is forecasting small revenue growth "in the low single-digit percentage range".

Nevertheless, it expects an expected gain in advertising revenues will more than compensate for a drop in circulation revenues and other sales.

Underlying or operating profit was seen rising up to 5 percent while net income per share was expected to grow by between 5 and 10 percent -- down from the 10.4 percent registered for 2015.