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  • 1. * Annual Review 2009
  • 2. Bonnier at a Glance Net sales by business area MSEK 10,000 8,000 6,000 4,000 2,000 0 Net sales per country ag ks Ev adc nes En g P g & r t s Bu tain r ne en pe es e M oo ap Pr m in in Pa i az B en ast 5% ss ng 7% Sweden ni r te si or o M Br Denmark 10 % U.S. 5 1% Finland EBITA by business area 13 % MSEK Norway 7% Germany 1,000 8% Other 800 600 400 Net sales by revenue stream 200 3 % 6% Ads 0 Subscriptions 3 1% Direct sales -200 25 % Retail -400 Box office ag ks Ev adc nes En g P g & r t s Bu tain r ne en pe es e Other M oo ap Pr m in in Pa i az 10 % B en ast ss ng 25 % ni r te si or o M Br
  • 3. Key Figures 2009 Revenues 30,867 MSEK EBITA 1,185 MSEK Profit after financial items –228 MSEK Reduced net debt 193 MSEK Employees (year average) 10,905 From its humble beginnings as a small book shop and publisher in 1804, Bonnier has grown into an international media conglomerate working in all forms of media, within 175 companies in 16 countries. Bonnier is wholly owned by the Bonnier family, which has been running the company for seven generations. From Jan. 1, 2010, operations are divided into the following business areas: Books, Broadcasting & Evening Paper, Business Press, Digital, Entertainment, Magazines and Morning Paper. Corporate headquarters are in Stockholm, Sweden. 3
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  • 5. 2009 in Black and White At last: the year that shook up the media priate – and profitable. Today we can no was time to stop speaking of it as some- industry and put us back on the right longer pretend we don’t know what our thing new. The business models we had track. audience wants. They tell us – every day, searched so long for were actually the same every minute – exactly what they think of business models we had always used: We For a few months this past spring, our what we produce. And we have to listen, get paid for producing products that people advertising sales in the U.S. dropped by 30 not reluctantly but eagerly. It’s still about like. It’s as simple as that. But it took a year percent from the previous year. In August the element of surprise, about creative de- like 2009 for us to realize this. the advertising volume in our Swedish velopment and refinement. But clearly the business newspaper was just half the vol- starting point is our audience’s demands. In numbers, 2009 was a year of extremes. ume of the year before. These figures were hard to swallow at the time. We spoke of 2. Efficiency Several of our print media recorded some a paradigm shift and painted the world in Good years create bad habits. And many of the worst figures of the past decade. For black and white. But now that 2009 has good years create a host of bad habits, SF Bio and our combined book publishing come to a close, we can once again con- which, added together over time, become operations, 2009 was the best year of the firm: It’s not black or white, but black and increasingly difficult to escape. By neglect- companies’ 100- and 200-year histories, white. ing to adapt cost structures and working respectively. methods for a new age, we posed risks The year 2009 was when the high tide of to our operations, brands and business Reality is seldom only black or white. an economic boom receded, suddenly and opportunities. Thankfully, 2009 finally dramatically revealing truths we had al- presented us with a chance to correct our ways known but had managed to repress. course. At the increasingly frenzied pace of the first decade of the millennium, we ran 3. Digitization ever faster, and in ever tighter circles, until According to rough estimates, more suddenly, our conclusions about the future than 100 million consumers purchased Jonas Bonnier were obvious: our books, read our magazines and President & CEO, Bonnier AB newspapers, and saw our films and TV Stockholm, March 2010 1. The audience programs last year. Tens of thousands of The media have traditionally aimed to advertisers used us as a channel to convey give the public what it wants. Paradoxi- their messages. Practically all of these cally, at the same time the assumption has buyers, viewers, readers and advertisers been that the public didn’t really know were connected to the Internet for much what it wanted, and that the media should of the year. The digitization we spoke of provide what it thought would be appro- for so long had already happened, and it 5
  • 6. Business Idea We Create, Select and Refine a World of Knowledge and Stories. Vision To Continously Reinvent the Art of Publishing. 6
  • 7. We plan for generations, not for quarters. Commitment of a Family Company We’re creating businesses We’re in media. Adapting to and organizations around Passion for Power of the changing market conditions people, not the other way Publishing Individual is our inherited strength, around. innovation is our focus. Freedom Core of Speech Values Strategic We believe that a public ongoing, pluralistic conversation is the Statements foundation of a democracy. Prioritized strategic objectives (0–10 years) We are the most attractive We always seek profitable We believe that a close rela- employer in the market to growth. Development and tionship and understanding entrepreneurial, skillful indi- improvement of existing of our customers’ needs and viduals who want to work in activities are part of the behavior are critical to our media. mission. success. 7
  • 8. Books Breakthrough for Digital Books Rapid digitization and its unavoidable consequences, including growing pressures on copyright laws, were prominent themes of 2009 within the book publishing industry. After a quarter-century of progress, 2009 was a breakthrough year for digital books, above all in the U.S. For Bonnier Books, profits were the best ever. At less than 2 percent of the total Ameri- The growing trend towards fewer, domi- Ullstein, Piper, and Hörbuch Hamburg can book market, the number of digital nant bestsellers also continued, with registered record profits. Taken together, books is still relatively low. But with 200 Stephenie Meyer’s Twilight series, along this enabled the German publishing group percent growth, it is expanding quickly. with Dan Brown’s The Lost Symbol, con- to report its largest profits ever. After taking the lead in 2009 with its e- quering the world. reader, Kindle, Amazon reported it had Bonnier Publishing experienced the im- sold more e-books than printed books on Bonnier Books registered its largest profit pact of the recession in the U.S. and the Christmas Day. Greater digitization has ever thanks to the success of publishing U.K., where bookstores were restrained in also meant that print-on-demand books groups in Germany, Sweden and Norway. their purchases. Under the direction of the have taken off on a global scale. This was due to a strong and more con- group’s new CEO, Richard Johnson, strong centrated publishing calendar, and to cost-saving measures have been imple- These technological developments pose increased efficiency in production and mented as the publishing houses have challenges to current copyright laws. The organization. increasingly coordinated their production strongest such challenge in 2009 was and sales organizations. Autumn in the Google’s legal settlement with American The Swedish Bonnierförlagen group re- U.K., Piccolia in France and Five Mile authors and publishers allowing Google ported very positive results following its Press in Australia, with the mass market to scan books with the aim of making all extensive restructuring in 2008, includ- as their primary distribution channel, published and unpublished works digi- ing enormous successes with titles such have each been affected by the weak mar- tized. Originally the settlement legally as Lars Kepler’s The Hypnotist and Dan ket, though to a lesser extent. bound all copyright owners worldwide Brown’s The Lost Symbol. Herta Müller, who had sales in the U.S., but after enor- winner of the 2009 Nobel Prize in litera- In 2009 Finland-based Tammi expe- mous pressure from interested parties, ture, was also among the year’s highlights. rienced a shrinking book publishing the settlement now applies only to Anglo- Together these contributed to a growth market, along with cutbacks in education Saxon countries. in market share for Bonnierförlagen in spending. Despite significant cost-saving a market that contracted in comparison and efficiency measures, new ventures The global recession had a strong impact with the previous year. The strong growth have been launched, and the newly ac- on book publishing in 2009. The economic of the online bookstore Adlibris continued quired readmi.fi has become an important downturn dealt serious blows to consumer through 2009, while new operations in addition within the world of non-fiction. markets, such as in the U.S. and England, Finland, Norway and Denmark were able where retail sales declined sharply. Even to meet projected targets. in countries such as Sweden and Finland, Net Sales Bonnier Books where sales are normally strong in part In the two years following its merger, MSEK due to the pricing pressures of high-vol- Cappelen Damm secured its position as 10,000 ume sales channels, book publishing mar- Norway’s largest publishing group. The kets have seen negative growth. In Norway Norwegian market remained stable, with 8,000 and Germany, on the other hand, markets Cappelen Damm by far the most success- performed well. ful publishing house. The group continued 6,000 its successes within educational materials, Globally, several long-term trends contin- increasing its market share while develop- 4,000 ued in 2009: Children’s books registered ing new digital learning tools. strong sales, fiction sales remained stable 2,000 and non-fiction sales declined. Despite In Germany, Carlsen Verlag achieved the recession and growing digitization, enormous success with Stephenie Meyer’s 0 the supply and consumption of books re- Twilight series, which sold more than 5.4 2007 2008 2009 mained relatively stable. million copies. Even the publishing houses See pages 40–41 for more financial information. 8
  • 9. * According to industry analysts, some 300 to 500 different e-readers will be launched in 2010. In order to meet the content demand, Bonnier launched the e-reader and web store Letto in February. 9
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  • 11. Books Pär Svärdson The Enthusiast A fierce competitor with a passion for sailing, Pär Svärdson has a knack for knowing which way the winds will blow. The CEO of Adlibris, the Nordic region’s largest online bookstore, his enthusiasm has taken him far, both as a sailor and a leader. “I guess I’ve always seen Adlibris as a “On the one hand, it’s always negative for Adlibris used to say: “Satisfied customers kind of sport,” says Pär Svärdson, CEO of us if fewer books are sold,” Svärdson says. are our only form of marketing.” Does this Adlibris, the Nordic online bookstore and “On the other hand, the crisis has caused still hold true? an avid sailor. “And like any sailing race, an accelerated change in consumer be- we’ve always had very clear competitors.” havior, and when the market recovers we “According to one survey from a few years hope more people will have discovered the ago, we received the most customer rec- The rest of the world may be talking about advantages of shopping online. I think the ommendations of any Swedish company crisis and recession. But not Svärdson. recession will prove to be good for us.” after Ikea. And I still believe that satisfied customers who recommend us to their “In 2009 we had our greatest profits ever: In February of 2009, Adlibris moved into friends are an unbeatable marketing chan- an increase of nearly 20 percent over the Bonnier’s historic publishing house in nel. But clearly we do market ourselves, previous year,” he says. “In fact, we’ve per- Stockholm. especially in other Bonnier press publica- formed better with every succeeding year, tions. We’ve also had advertisements on both in terms of sales and profits.” Can you preserve your unique corporate TV4 and will soon do the same with MTV3 culture after moving in with Bonnier- in Finland.” This success can be attributed in part to förlagen? extreme cost consciousness. At least once Is the long-tail economic model – selling a year, Adlibris implements an extensive “I definitely think so. Naturally we col- large numbers of single items – still work- set of cost-saving measures. This could laborate with the publishing houses in the ing for Adlibris? mean anything from changing suppliers building, but we keep to our own area and of pens to compelling executives to pres- have substantially lower gross margins “Definitely. We have 3.5 million titles ent their ideas on ways to operate more than those within the publishing opera- to choose from. Of these we sold about efficiently. And while the rest of the in- tions. It’s a delicate balance, but I’d say 550,000 in 2009, which is just over 15 per- dustry checks into expensive hotels when that despite having nicer offices now, we’re cent. Half of these sold only a single copy. the next book fair comes around, Adlibris still Adlibris.” It’s a strange thought that a huge number stays in a youth hostel. of the books we sell will never be sold by Today Adlibris is present in four coun- us again.” “We have our fingers in everything,” tries: Sweden, Norway, Finland and since Svärdson says. “I confess that Ikea and mid-2008, Denmark. How is business? Five years have passed since Bonnier be- H&M serve as role models in this respect. came a majority shareholder in Adlibris. They also manage to keep costs very low.” “Books sales have dropped dramatically The day after the agreement was signed, in Finland over the past year, whereas Svärdson took a test run and bought the Ikea and H&M are successful Swedish Denmark and Norway have performed boat of his dreams: a 40-foot Arcona. It companies that have in some ways always strongly. But 80 percent of our sales still was in November. In a raging snowstorm. behaved as if the economic crisis was al- come from Sweden.” That’s an enthusiast. ready under way. Like Adlibris. 11
  • 12. Broadcasting & Evening Paper Fewer Ads, More Channels In 2009, people watched more TV than ever before. Despite a decrease in revenue from advertising, the industry benefitted from expansion – 245 new channels launched in Europe alone. TV4 Group saw an increase in viewers during the year. In the U.K. and the U.S., as well as in In the U.K., several large Web TV projects ership in the age 12-59 demographic. MTV France, Germany, Italy and Spain, TV are under way. There, as in Scandinavia, Media, meanwhile, maintained its share of advertising markets experienced one of public service has had a powerful influence just over 40 percent of viewers aged 15-44. their toughest years ever. Within the EU, (BBC Iplayer had more that 100 million estimates show the TV industry lost nearly viewings in December 2009). Elsewhere, C More, a provider of sport and film chan- 12 percent of its revenues in 2009. But de- the Web TV service attracting the most nels in the Nordic countries, was acquired spite sagging advertising sales and a his- admirers is U.S.-based Hulu, owned by at the end of 2008. Its operations have torically weak overall economy, new chan- the media giants NBC, News Corporation exceeded expectations, entering 2010 with nels showed promising growth. Some 245 and Disney. The number of Hulu visitors more than 1 million subscribers. new channels emerged in Europe alone. is nearing the 50 million mark, a growth level that resulted in demand for more Thomas Mattsson took over in March as The companies performing best in 2009 than 1 billion viewings per month — an editor-in-chief of Expressen. During his were likely those with multiple sources of increase of 400 percent in one year). And first year he has gradually renewed and revenue, thanks to different types of TV most signs point toward increasing com- developed the newspaper’s editorial con- content offered via different distribution petition over the coming years. We are tent. Although the circulation of evening channels. While advertising sales remain now taking the next step in the evolution newspapers has declined the past several key despite the crisis, consumer and dis- of media, into a truly digital decade. Have years, Expressen has exceeded projections tribution revenues have become increas- we reached a true paradigm shift at last? in terms of both readership and circula- ingly important. And new services are ex- tion. On weekends it now has more read- pected to further increase these revenues In early autumn of 2008, the financial ers than its competitor, Aftonbladet. in the future. What the industry called a crisis and recession were already unavoid- “year of crisis” was the opposite in the eyes able facts. So the dramatic loss in advertis- A collaboration between Expressen and of consumers. Never before had consum- ing revenues for TV4 Group, MTV Media TV4, including shared ventures and opera- ers watched so much TV. and Expressen in January of 2009 was no tions within mobile and Internet-based surprise. However, significant questions services, along with events and sales, was In parallel with increased access to Web remained: How far could they fall, and also launched during the year. TV and IPTV, more people will naturally how long would the recession last? Though shift away from traditional TV. This is difficult to predict, the answers were cru- Net Sales Bonnier Broadcasting likely to be the next major transition for cial to revising our original plans for 2009. & Evening Paper media companies, despite the fact that, MSEK with the Winter Olympics and the World All three business units implemented 10,000 Cup in soccer, 2010 has the potential to be cost-saving measures in relation to their an extremely strong year. original budgets, but a decision was 8,000 made that this would not happen at the “Crisis” was the word on everyone’s lips expence of viewership and circulation 6,000 when describing 2009. But this was not targets. The TV channels maintained due to any lack of innovation. In 2009 their relatively aggressive programming 4,000 non-linear TV grew from oddity to mass- schedules, although it was clear early on market phenomenon, from threat to op- that we would not be paid in full for all our 2,000 portunity. Today 55 percent of viewers viewers. In total, average TV viewership watch Web TV. All major companies have increased both in Sweden and Finland, 0 launched on-demand services and hopes primarily among younger viewers. TV4 2007 2008 2009 for advertising revenues are on the rise. Group increased its viewer share and for the first time captured 30 percent of view- See pages 40–41 for more financial information. 12
  • 13. * Microphone used for Swedish Idol on TV4. With viewer- ship of 58 percent among 12–59 year olds for the final program, Idol is Sweden’s biggest music contest in all categories. 13
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  • 15. Broadcasting & Evening Paper Michael Grimborg The Risk-taker Director of Sales at TV4, Michael Grimborg thrives on challenge. An avid photographer with a strong interest in people, he also happens to be Sweden’s largest seller of Chinese electric bicycles. Crisis breeds creativity. The question is everyday affairs for Grimborg and his col- “With Idol, we’ve worked to extend and whether the need for creativity has ever leagues in 2009. deepen our channels toward different been as acute as in 2009. Within the TV customers,” he says. “It could be Läkerol market, advertising revenues dropped “The reason we work with these types of breath mints, which has the rights to use by 15 percent as large customers nearly companies is that we believe their sales the brand in retail stores, Viking Line, ceased to advertise altogether. could increase with a bit of incentive,” he which has Idol boat cruises featuring the says. “And in every case where we help competition’s artists or telephone opera- “That’s just how it was,” says Michael to increase their sales, we become deeply tor Tele2, which offers its subscribers the Grimborg, director of sales at TV4. “A involved in their businesses. I get text chance to download the winning song. number of customers, who would have messages from the Swedish clothing chain And we can offer our customers exposure accounted for SEK 300 million in revenues Dressmann telling me how many pairs of via TV, Internet, mobile phones, shopping in our budget, paid us nothing.” underwear they sold yesterday.” center tours and live performances.” Something had to be done. This is where While TV advertising revenues decreased What was the biggest development in tele- electric bicycles enter the picture. dramatically during the past year, TV4 vision in 2009? managed to increase its total share from “I constantly read about two things: health 53 to 55 percent. At the same time, the “TV4 Play and other media players brought and the environment,” says Grimborg. number of new domestic customers grew multi-platform TV to life. What viewers “From there it’s just a small step to bicy- from 135 to 150. How did this happen? miss on TV, they watch online now.” cles. I ended up contacting Trendimport, an importer of electric bicycles from “We’re great at holding client meetings,” What was significant about TV4’s collabo- China, and the pieces fell into place.” says Grimborg. “In 2008 our sales staff ration with Expressen? held 27,000 client meetings; in 2009 it Together with Trendimport, he created the came to more than 32,000. On top of this, “That we can allow our customers to offer brand Lifebike, today owned by TV4. He we have great sales tools and methods, additional products through the 13,000 signed a three-year contract with the com- and not least, passionate salespeople.” retailers of Expressen. In terms of adver- pany that gives Trendimport exposure on tising, TV4 and Expressen also helped television and TV4 in turn receives higher It wasn’t for nothing that Grimborg was each other to serve new customers.” payments as more bicycles are sold. named Sweden’s Most Influential Media Sales Executive of 2009 by industry news- What is your next joint-venture project? “The first year was mainly focused on paper Resumé. TV4, for its part, received building the brand and its distribution the distinction of Best Media of the Year “To collect old refrigerators and replace network,” he says. “But in a few years’ for its comprehensive solutions for adver- them with more environmentally friendly time, it may turn out to be quite lucrative.” tisers on various platforms. TV4’s Idol con- ones. In this case, we’ll collaborate with cept is perhaps the best example. one manufacturer, one retailer and one Similar types of joint ventures became waste-management company.” 15
  • 16. Magazines Historic Ad Loss for Magazines Magazines had one of their most difficult years ever in 2009. Not just because magazines are on their way to being wiped out by a digital tidal wave. A rapid economic decline also exposed flaws in a business model based primarily on one source of revenue: advertisements, something felt even by Bonnier. The recent decline of global advertising in markets where readers have long been Bonnier Publications also carried out sev- is the most drastic change ever seen by accustomed to paying just a few dollars eral cost-saving measures, partly through magazine publishers. In the U.S., the for a yearly subscription. The solution that the elimination of certain licensed titles in world’s largest market for magazines, con- most publishers seem to envision involves Denmark. The advertising crisis in Russia sumer magazines advertising decreased expanding their assortment of events, was most challenging of all, while Finnish more than 25 percent. In many other websites, advertorials and other associ- operations positively surprised the mar- countries, the decline was even sharper. ated ventures. ket with the launch of a new title: Evita. even in countries whose GNP continued to Idényt and Benjamin Media are now fully grow, magazine advertising sales simply At this point magazine publishers have owned subsidiaries. Especially notable collapsed. concluded that websites will not replace among the year’s bright spots is Illustreret print magazines. Instead, websites are Videnskab (Science Illustrated), which During the boom years leading up to the seen as just one of the new, minor sources saw stable growth during the year. crisis, an unusually large number of maga- of revenue that will support advertising zines were launched in a multitude of mar- revenues, or as a marketing channel for Circulation figures for Bonnier Tidskrifter kets. For many publishers this increase in subscription sales. However, many have in Sweden exceeded those of 2008, while competition only compounded a number high hopes for the new e-readers that are the decline in advertising was met with of growing problems. The magazine mar- now being released on the market, and for cost-saving measures and reorganiza- ket, however, differs from other media the opportunity they present for entirely tion. Ownership in Spoon Publishing was markets in that several business models digital magazines. increased, and contract-publishing opera- coexist, sometimes even within the same tions had a strong year. Even M-magasin market segment. This means that certain For Bonnier, 2009 was a year in which and crossword publishing operations publishing houses, which had established the recession gradually grew into a full- surprised positively. Stockholm City was primarily subscription-driven titles, were fledged print advertising crisis. The mar- added to Bonnier Tidskrifter’s portfolio hardly affected by the economic crisis, ket for magazines suffered especially hard in August, and a plan implemented in au- while those surviving on advertising rev- due to an overabundance of titles already tumn will have the newspaper in the black enues suffered dramatically. The effects of on the market after several years of boom- within the near future. the crisis therefore vary significantly. ing magazine sales. During the year we began to see an expected purging of com- The big question for markets where peting titles in our home markets, both in advertising-based business models are Scandinavia and the U.S. Net Sales Bonnier Magazines dominant, as in the U.S., Russia and much MSEK of Asia, is whether advertising revenues We saw a decline of 25-30 percent in ad- 10,000 will return, or whether the business model vertising volumes from 2008. For the U.S. itself must change. magazine publishing industry, which is 8,000 significantly more dependent on advertis- Many magazine industry analysts in the ing revenues than Scandinavian markets, 6,000 U.S. contend that publishers will have to this had a big effect on total revenues. cease basically giving away their maga- Nonetheless, Bonnier Corporation man- 4,000 zines to readers and begin charging for aged the decline by extensive cost-saving subscriptions. There is almost complete measures and by increasing market shares 2,000 consensus around the principle that within a number of segments. Several publishers will need to charge for digital key acquisitions of individual titles were 0 editions of their magazines as they are made, expanding the overall portfolio with 2007 2008 2009 launched. But few believe it is possible to magazines such as Flying, Boating and definitively begin to charge for magazines Popular Photography. See pages 40–41 for more financial information. 16
  • 17. * In Scandinavia, Bonnier is a leading publisher of women’s and shelter magazines. The oldest is the Swedish Damer- nas Värld (Ladies’ World) which started in 1940, and the youngest is the Finnish Evita, launched in 2009. 17
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  • 19. Magazines Sue Gilman The Traveler Few people have seen as much change as Sue Gilman, group publisher of Bonnier Travel Group – yet, 2009 took her by surprise. Now she begins to see light at the end of the tunnel. “Our business has actually been changing discount the importance of what we do When we help bring visitors to a destina- for quite awhile,” says Sue Gilman, group editorially,” she says. “By continuing to tion, we bring economic life as well. It’s not publisher of Bonnier Travel Group, which make travel seem attractive, we’re deliver- just pretty, it’s important.” includes ISLANDS, Spa, Caribbean Travel ing a whole package to our partners. We’re + Life and Resorts & Great Hotels. “With not just selling an ad, we’re reinforcing the Looking ahead, Gilman sees an industry the advent of the Internet, people could industry’s value to the culture as a whole.” that has irrevocably changed. “The fact suddenly control their own travel destiny, is, our business will never be what it was and they didn’t need print in the same way In 2009, Gilman put her focus on find- five or ten years ago — things will be dif- they once did.” The worsening economic ing new solutions to the age-old issue of ferent going forward. But I’m beginning climate added to the problem. “We saw how to connect advertisers with readers. to see light at the end of the tunnel. People a noticeable slowing down in the second “Our primary aim was to create custom are starting to travel again. When people half of 2008, due to the simple fact that programs that intermix all sorts of media are traveling, we will sell magazines and people weren’t traveling,” she says. “Then, options — not just print but events, televi- advertising; it’s when people don’t travel in 2009, our customers watched their sion, web offerings. This is the new reality: that our customers become paralyzed.” business fall by double digits.” If you’re not bringing clients these kinds of options, you’re not selling, simple as that.” “The important lesson we’ve learned from The impact on the Travel Group was this is that we need to be responsive. We profound. “Print was hit first, and most And they’ve taken things even further, get- can’t set things in stone; we have to react dramatically. What was interesting ting involved in client branding. “Before, to things that are happening, and create was that the impact was felt across the we gave clients a platform for their mes- solutions quickly and efficiently,” she says. board — from small destinations to big sage; now we’re helping them create and international hotel chains, everyone was define that message in entirely new ways,” “Selling used to be programmed: Budgets affected.” Gilman had seen recessions she says. “Viral marketing, social media — came out in the fall, and you’d sell in the before, but nothing quite like this. “After those terms didn’t exist five years ago. And fall. Now it’s an ongoing process — you sell 9/11, we felt like there was leeway; after there are things coming down the pike year-round, and you create opportunities time went by, things would get back to that we haven’t even thought of yet. Our when customers need them. Our plan- normal. But this recession has been so challenge lies in teaching our clients how ning cycle has become shorter because protracted — here we are in 2010 and it’s to cohesively market themselves across a our customer’s forecasting cycle has be- still going on. There are no short-term new array of possibilities.” come shorter. That’s what they need. And fixes in this environment; people need through all of this, we have stayed true something holistically different.” Another challenge is keeping her team mo- to our niches, and will continue to do so. tivated at a time when everyone is working There is no substitute for that.” To keep perspective on the market in a harder for smaller results. “I try to remind broader sense, well beyond individual my team about the importance of what we clients’ needs, proved key to navigating do, especially in tough times,” she says. the choppy economic waters. “I cannot “Tourism affects people’s livelihoods. 19
  • 20. Business Press Lower Earnings for Business Press The trend was clear: Earnings dropped for business press, but readership rose in 2009, a time of economic uncertainty. At the same time, the industry’s two largest newspapers – the Financial Times and the Wall Street Journal – have been engaged in a war on several fronts. Meanwhile, Bonnier Business Press was hit by the biggest loss in ad revenues in modern times. The battle for business readers in 2009 In 2009 advertising revenues for Bonnier tured in the first quarter, ending the year was fought far and wide. The Wall Street Business Press suffered their largest de- profitably. Croatian daily newspaper Di- Journal advanced its position in Europe cline in modern times. Thanks to vigorous ena, Latvian business newspaper Dienas with a new strategy that includes an inte- cost-cutting efforts, along with extensive Bizness and business.hr in Croatia were grated online and print editorial office, a restructuring within Central & Eastern sold during the year. A new CEO was ap- clearer news focus on the web and fewer Europe (CEE) operations, the end results pointed for the Bulgarian market in Octo- but higher-profile articles. The same mod- of these revenue losses were minimized ber 2009, while a number of acquisitions el was launched the past summer in Asia. enabling Bonnier Business Press to record were carried out in Estonia and Poland. a positive, if modest, profit margin. The Pearson-owned Financial Times The companies within Medicine Today countered by reducing its subscription DI Group in Sweden also suffered from International (MTI) have felt the impact price in the U.S. to half its U.K. price, a dwindling advertising sales. Even di.se of the economic recession, though to a strategy widely seen to have produced was affected but continued to deliver considerably lesser extent than the busi- positive results. Even the U.K.-based positive earnings with healthy profit ness press sector as a whole. Advertising Economist reported successful American margins. The year 2009 saw the launch revenues decreased by just 6 percent from sales in the wake of the financial crisis. of summer publications for DI Weekend the previous year. A Slovenian medical and the launch of monthly magazine DI newspaper was launched early in the year, In its second year under the ownership Dimension. Gunilla Herlitz was succeeded adding a seventh country to the list of MTI of Rupert Murdoch’s News Corpora- as editor-in-chief by Peter Fellman, for- publications. A substantial investment in tion, The Wall Street Journal in the U.K. merly managing editor, while the post of event management also began during the heavily reduced subscription price to 95 CEO was assumed by Casten Almqvist, latter part of 2009. British pounds. The competition caused also CEO for the business area. the newspaper heavy earnings losses. On January 1, 2010, all operations within Total revenues for the Financial Times In Denmark Børsen suffered as well, CEE and MTI were unified under a com- dropped by 30 percent during the initial losing approximately 30 percent of its ad- mon management company, Bonnier nine months of the year and, by the turn of vertising revenues. However, it managed Business Press International, with Anders 2010, management was predicting sales of to secure its market share in a shrinking Eriksson as CEO. subscriber-based online and print content market, and circulation continued to grow, will outpace advertising revenues within to 74,000 by year-end. Cost reductions two years. compensated somewhat for the drop in Net Sales Bonnier Business Press advertising revenues. Børsen, which pub- MSEK In the U.S. Business Week suffered acute lishes no Saturday print edition, instead 5,000 economic problems during the year, allow- launched a digital Saturday edition re- ing Bloomberg to purchase the newspaper stricted to subscribers, using technology 4,000 at a bargain price. previously used for digital magazines only. 3,000 Online, 2009 was the year of pay walls. For operations within CEE, the effects of The signals sent by News Corporation the crisis were dramatic. Advertising rev- 2,000 were unmistakable, giving others cour- enues declined by 45 percent from the pre- age to follow suit. Wall Street Journal vious year, and extensive organizational 1,000 walled off more of its content, followed changes along with cost-saving measures by the Economist. At the same time skep- were carried out in all companies. Estonia, 0 tics noted surveys showing 80 percent of Russia and Slovenia recorded profits for 2007 2008 2009 respondents would consider abandoning 2009 despite substantially reduced rev- sites that began to charge for content. enues. Operations in Poland were restruc- See pages 40–41 for more financial information. 20
  • 21. * With publication of business dailies and websites in 11 countries, Bonnier Business Press reaches more than 1 million readers daily and 2.1 million site visitors per week. 21
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  • 23. Business Press Tomasz Siemieniec The Savior Tomasz Siemieniec, managing editor of Poland’s Puls Biznesu, saw the warning signals of an approaching recession and reacted immediately. As advertising revenues began to fall, the newspaper was well prepared for a crisis. The year that passed made it painfully has remained unaffected by the global (as in “fit for crisis”) and gave concrete clear that we live in a global economy. No economic crisis. advice on how companies and private indi- country and no market remain unaffected viduals could manage the crisis. by a weak or severed link in the chain. The In January of 2009 the editorial manage- fate of Sweden’s top banks is determined ment of Puls Biznesu realized that the “All crises come to an end,” says on the other side of the Baltic Sea, just as current economic situation was unstable. Siemieniec. “When revenues took their the country’s largest industrial corpora- It began with the contraction of the con- deepest dive we were able to convince tions are entirely dependent upon what struction industry, and a drop in private employees, management and owners that happens in China, India and Brazil. consumption followed. Advertising sales we would survive the adversity together. It suddenly came to a halt. was just a matter of rolling up our sleeves, Poland, a market where Bonnier Business working harder and saving on all imagin- Press has operated since 1997, has demon- “As journalists we understood the warn- able expenses.” strated more plainly than any other coun- ing signals early on and decided to act try in Europe that economies with sound quickly,” says Siemieniec. “Within a week One year later, Siemieniec can look back national financial policies and a strong we’d begun cutting costs across the entire on a period when Puls Biznesu proved to underlying demand are able to rebound operation.” its staff, readers, advertisers and owners most quickly from a recession. that the newspaper could weather a severe In the restructuring that followed storm. Competition is intense on the Pol- “It’s true we live in a global economy, but Siemieniec, who had worked as a reporter ish market for daily business newspapers: what happened to Lehman Brothers last and news chief, stepped in as managing There are six, of which Puls Biznesu is No. 3. autumn happened on Wall Street – not editor. His first task was to launch the here in Warsaw,” says Tomasz Siemieniec, most radical cost-saving program in the But the editorial management is forging managing editor of Puls Biznesu. “We’ve 13-year history of the newspaper. expansive plans. In the coming year they been affected by the crisis, but everything plan to increase the newspaper’s market in Poland continues to grow despite this.” When the dust settled, editorial staff had share, to continue to target small business been slimmed down from 80 to 45 mem- owners and to further enhance their edito- In contrast to its neighboring countries bers, supplements had been combined or rial content. The market has rebounded in the Baltic, Poland’s economic growth eliminated, contracts with printers had quickly. was not inflamed by questionable interest been renegotiated and prognoses revised rate policies. Not a single Polish bank has with 30-percent reductions in advertising “2010 will be an eventful year for the Pol- applied for a government bailout. House- revenues. ish market,” says Siemieniec. “Economic hold and corporate debt are relatively subsidies from the EU are on the rise, low. Instead, economic growth is driven The next step was to lead the way out of we’re having local and presidential elec- primarily by a flourishing export indus- the economic crisis – both for employees tions simultaneously, and the Warsaw try and a rise in living standards. Still, it and readers. In one article series, Puls stock market is planning several large IPOs.” would be impossible to claim that Poland Biznesu introduced the concept of “crisfit” 23
  • 24. Entertainment Big Moves for Movies The film industry thrives in times of crisis, the saying goes. 2009 – the year 3D films proved they were here to stay – was no exception. Swedish movie theaters had a record year in 2009. In the 1930s Busby Berkeley’s showgirls industry’s battle against illegal download- film of 2009, however, was not local but sang “We’re in the Money” as an ironic ing, and the Pirate Bay trial in Sweden the Oscar-winner Slumdog Millionaire, juxtaposition to the long breadlines of the sent ripples around the world. to which SF owned the distribution rights Great Depression. In 2009, movie bosses for the Nordic markets. SF maintained its from the U.S. to Europe could have sung Successful 3D releases require digitized position as the Nordic countries’ leading the same song. In the U.S., the year ended cinemas, however. All Norwegian cinemas distributor of DVD films. with record figures – USD 10.7 billion in will become fully digitized within two recorded earnings made 2009 the indus- years, and the transformation is under Europe’s Intellectual Property Rights try’s best year ever. Ticket sales increased way throughout large parts of Europe. Enforcement Directive (IPRED) and the by nearly 10 percent and attendance by 3 During the first half of 2009, the number Pirate Bay trial in Sweden had positive percent compared to 2008. of digitized cinemas increased by 43 per- effects on both rentals and sales of DVD cent in the U.K., 40 percent in Denmark, films – not only for SF, but for the Home- And new films blazed across big screens 79 percent in Russia, 129 percent in Italy, enter film clubs and Discshop e-stores the world over. After only three weeks 136 percent in France, 150 percent in as well. But video-on-demand sales via James Cameron’s Avatar reported earn- Sweden and by 224 percent in Spain. The SF Anytime’s PC platform failed to meet ings of more than USD 1 billion. Other largest percentage increase occurred in expectations despite IPRED legislation. international box-office hits included Up, the Czech Republic, where the number of Meanwhile, sales via IPTV (TV via broad- Harry Potter and the Half-Blood Prince, digital cinemas grew from two to 25 with- band Internet) showed strong growth. New Moon, Ice Age 3, 2012, and Angels in the course of six months – an increase and Demons. of 1,150 percent. The music industry has suffered more than the film industry in terms of illegal Several of the year’s blockbusters were For Swedish cinemas, 2009 was a record downloading. At the end of the year, af- screened at select cinemas in 3D, which year as well. A strong and broad selection, ter several years of lost revenues and an contributed significant earnings, since including an unusually successful year for overall contraction of the music market, each ticket costs a few dollars more. In Swedish films was largely responsible for ownership of the record company Bonnier addition to Avatar, both Up and Monsters the positive results. Amigo Music Group was sold to the com- vs. Aliens were big 3D hits. pany’s board of directors. Swedish films accounted for over 30 According to major industry players in- percent of total box-office sales, a unique cluding James Cameron, Steven Spielberg phenomenon in modern times. Despite Net Sales Bonnier Entertainment and Peter Jackson, 3D is more than a the biggest selection ever of films avail- MSEK trend – it is here to stay. A number of new able across different viewing platforms, 5,000 films in 2010 will be shown in 3D as well audiences showed a growing interest in as in the traditional format. And old favor- viewing films in their original screening 4,000 ites such as the original Toy Story films format. The quality, accessibility and gen- will be re-released in flashy new 3D attire. eral film experience have all improved and 3,000 must constantly be developed if cinemas Now 3D technology also has become part are to maintain their powers of attraction. 2,000 of a new strategy in the struggle against So far, SF Bio and SF Kino succeeded in illegal downloading. Because it is impos- meeting this challenge. 1,000 sible to download 3D versions of films, cinemas have found an effective way to Svensk Filmindustri (SF) produces films 0 attract audiences with an experience they in all the Nordic countries, releasing some 2007 2008 2009 can’t have at home on their sofas. In other 30 local films per year with SF as producer respects 2009 was marked by the film or co-financier. The most successful SF See pages 40–41 for more financial information. 24
  • 25. * The film Avatar was a breakthrough for 3D technology at the cinema. More than 31,500 3D filmgoers came to SF Bio movie theaters on the opening weekend alone. 25
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  • 27. Entertainment Antti Toiviainen The Bestseller Antti Toiviainen, CEO of the Finnish film distribution company FS, looks back at the best year in the company’s history. After 12 months of large audiences drawn by high-profile, high-quality films, he and FS emerge from the economic crisis stronger than ever. Trends come and go. Technological revo- For these films, FS co-finances the entire decade’s technological revolution, the fate lutions turn our lives upside down. New production process – from film proposal of the film industry has been determined competitors appear out of nowhere and to marketing. mainly by illegal downloading, DVD sales instantly transform the market. Some and digital distribution. things, however, remain constant. Like the “Finland is a small market, but interest for fact that quality pays off. And that films domestic films is very high among audi- But although these developments have pri- are best seen at the cinema. ences,” says Toiviainen. “It’s possible to marily benefitted retailers and file-sharing make money on Finnish films, but it can pirates, the next chapter of the story may “In our business, we actually haven’t felt be very risky. It’s critical to make the right be to the advantage of the cinema: 3D film. much of the recession, since 2009 was a decisions during the production process.” For the film industry, physical distribution year in which we distributed great films is costly and cumbersome. Most often, it that attracted large audiences,” says Antti One example of a local box office hit is requires copying and transporting up to Toiviainen, CEO of FS Film Oy in Helsinki. Haarautuvan rakkauden talo, or House 65 pounds of 30-millimeter film. But with of Branching Love. Written and produced digital films – burned on discs and pro- The Finland-based company, a wholly by Mika Kaurismäki, the elder of two jected onto specially adapted film screens owned subsidiary of Svensk Filmindustri, is filmmaking brothers who are legendary – the cinema experience is improved while purely a film distribution company. Toiviain- in Finland, it attracted droves of Finn- costs are reduced. en and his 30 colleagues annually distribute, ish moviegoers. Audiences of more than co-produce and market some 350 films. 145,000 watched the story of a newly di- James Cameron’s mega-production, vorced couple who move back into a house Avatar, was the real breakthrough for 3D In 2009, 35 films distributed by FS were together while waiting for it to sell. technology both in Finland and Sweden. screened at cinemas in Finland, with 330 3D also means that fewer titles, such as titles released on DVD. Distribution con- The box-office success of the Indian Oscar- small independent films directed toward tracts between Fox and SF, together with winner Slumdog Millionaire serves as niche audiences, will have a greater locally produced Finnish films, make up further evidence of the maxim that quality chance of appearing on traditional cinema the core of the company’s business. always pays. screens. “As a film distributor, it is crucial to divide “But we shouldn’t underestimate the Ice “The new technology is going to transform the right films into the right channels,” Age effect,” says Toiviainen. “It was seen the entire cinema industry for the better,” Toiviainen says. “Recent years have been by as many as 390,000 people in Finland, says Toiviainen. “An enhanced cinema successful for FS because we’ve handled a figure higher than the attendance for the experience offers yet another competi- commercial risks wisely and constantly final Harry Potter film. Ice Age 3 was in- tive advantage against downloaded and cut down on costs.” credibly important for our business.” pirated films.” One or two films a year are produced lo- Moviegoers who pay for their tickets re- cally for screening in Finnish cinemas. main important, but in the wake of the last 27
  • 28. Morning Paper Identity Crisis for Morning Papers 2009 was the year of crisis that broke the backs of several of the world’s oldest morning newspapers. It was the year that Rupert Murdoch promised to charge for online news sites and Nicolas Sarkozy gave away free subscriptions to French teenagers. For Bonnier, the year was a huge challenge for selling ads. In 2009, financially troubled morning of the World, as early as middle of 2010. Negative advertising trends began to turn newspapers around the world were being around toward the end of the autumn, and forced to lay off staff and make cutbacks. As Google CEO Eric Schmidt attempted Sydsvenskan won an array of prizes and In the U.S. dozens of daily newspapers to calm Murdoch’s nerves, scornful com- distinctions, including the Stora Journal- were dissolved during the course of the ments were hurled at the billionaire by istpriset (Great Journalist Award), which year, among them the Rocky Mountain Arianna Huffington, founder of the Huff- it earned for the second consecutive year. News, which was founded in 1859. ington Post and a symbol of the idea that online news can be profitable. Bold Printing Group, Bonnier’s printing Other dailies managed to avoid bankrupt- operations with facilities in Stockholm, cy by completely revising their business This mudslinging highlights a central Malmö and Borås, underwent a turbulent models. The Detroit Free Press, for exam- question for the industry: Is it possible to year in the wake of the recession. Cost- ple, reduced the number of days of publi- earn a profit from traditional newspapers saving measures and personnel reductions cation while the Seattle Post-Intelligencer at a time when their market share is took place with a continued focus on qual- converted entirely to online publishing. shrinking and readers increasingly turn to ity production. free news articles online? Not even the New York Times Company succeeded in keeping its head above water: Already by the beginning of 2009 it was Its losses in just the first fiscal quarter clear the year would pose extreme chal- amounted to a full USD 75 million. lenges for Bonnier in terms of advertising sales. And this held true as the advertis- French president Nicolas Sarkozy took ing crisis spread throughout the market. the crisis seriously early on, promising a Circulation however remained stable for bailout package worth EUR 600 million our morning newspapers, and a great deal in order to save the French newspaper of energy was directed toward cost-saving publishing industry. The country’s 18- to measures throughout all operations. 24-year-olds were offered a one-year’s subscription to the daily of their choice – The autumn was especially tumultuous paid in full by the French taxpayers. for Dagens Nyheter, as comprehensive organizational changes were made under Net Sales Bonnier Morning Paper However, the powerbroker who will the leadership of newly appointed CEO MSEK be most closely associated with morn- and editor-in-chief, Gunilla Herlitz. An 5,000 ing newspapers’ worst year within editorial reorganization process also was human memory is media mogul Rupert implemented, and suffering advertising 4,000 Murdoch. The billionaire behind me- sales began to rebound during the latter dia conglomerate News Corporation, part of the year. 3,000 Murdoch repeatedly accused Google and other search engine operators of being Sydsvenskan, Kristianstadsbladet, Ystads 2,000 “parasites” who “stole” the newspaper’s Allehanda and Trelleborgs Allehanda, articles. were incorporated into a single publishing 1,000 group, SDS, as of January 2009. Coordina- In addition to these accusations, he prom- tion efforts continued throughout the year, 0 ised to charge for access to online versions in parallel with cost-saving measures. 2007 2008 2009 of the New York Post, along with British In the spring Richard Frank took over as newspapers the Sun, the Times and News editor-in-chief of Trelleborgs Allehanda. See pages 40–41 for more financial information. 28
  • 29. * Bold Printing Group is one of the Nordic region’s leading newspaper printers. It prints some 850 million news- papers yearly. 29
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  • 31. Morning Paper Gunilla Herlitz The Lion Tamer Editor-in-chief and CEO Gunilla Herlitz is set to turn red ink to black. According to Herlitz, subscriptions are at the heart of business for Swedish daily Dagens Nyheter, and the biggest challenge is to commercialize web traffic. No one in Sweden’s media industry could position as the country’s leading national editorial mission however is likely to be have missed the fact that the country’s big- newspaper and make the company profit- more complicated given the various edi- gest morning newspaper appointed a new able again.” torial sections, departments and media CEO and editor-in-chief last autumn. Nor platforms that make up Dagens Nyheter. did anyone fail to notice that she started There is good reason why Dagens Nyheter Nonetheless, she focuses on keeping by shaking up the organization, upsetting is compared to a lion. The paper has a things simple. a sleeping lion of Stockholm’s newspaper- daily readership of some 800,000, every publishing district. week the website, dn.se, attracts 1.1 mil- The editorial product – both online and in lion unique visitors and the company print – must deliver comprehensive world Anything else would have seemed strange. earns billions of Swedish kronor. The lion coverage to its readers. One of Herlitz’s first decisions was to make that Herlitz is set to tame needs to be- major layoffs. These opening moves in her come more efficient, more agile and more In practical terms, this requires a strong new job followed a harsh but obvious logic: profitable. news organization with foreign correspon- trim costs, cut back services and reduce dents around the world. An editorial page freelance content. Herlitz the organizer cut her teeth on the that speaks from a strong opinion-setting editorial floor of Dagens Industri – a tradition; a culture section that is deep “I discovered a paper in deep financial cri- working environment known for its direct and wide in scope; a sports department sis,” says Herlitz, gazing through the glass decision making and entrepreneurial cul- that continues to build on its reputation as doors into Dagens Nyheter’s main edito- ture. This is something Herlitz took with one of Sweden’s best and most knowledge- rial newsroom. “I also saw an organization her to her new workplace. And when a able; a business section that covers broad that had serious flaws.” decision needs to be made, she takes pride private financial issues. And a website that in setting a good example – swiftly and di- continues to compete for the title of Swe- She describes Dagens Nyheter as an rectly. This is a prerequisite in a company den’s largest news site and differentiates ocean containing hundreds of small is- where sudden events in the outside world itself from the newspaper’s print editions. lands with limited communication and can result in a rapid reworking of both the no strategic awareness. Then a sustained front page and the budget. “The website should give readers the brev- economic low-pressure front blew in over ity and overview that the printed edition the entire archipelago. In concrete terms, “Advertising revenues are important for cannot provide,” says Herlitz. “I belong Dagens Nyheter lost SEK 277 million in the business model of a morning news- in the camp that thinks it is impossible to advertising revenues during the financial paper, but we must not underestimate the generate revenue for journalistic content crisis and recorded heavy earnings losses. paid edition,” she says. “The willingness online, even in the future. The challenge to pay remains strong, and subscription instead lies in increasing and commercial- “But there are some enormous strengths,” revenues are stable despite fluctuations in izing online traffic.” Herlitz says. “Dagens Nyheter is Sweden’s the economy.” largest and most important morning daily. What we need to do now is strengthen our Herlitz’s financial challenge is clear. Her 31
  • 32. 16 Media Trends Paulina Modlitba Söderlund and Björn Jeffery from Bonnier Research & Development identify 16 trends likely to shape the near future. With Twitter in mind, here they are in 140-character tweets each. Data Learn your customers’ digital behavior in order to offer better service. Those who use their data best will be the clear winners. find meaning and structur e in data flows The Quantified Self Open Interest is growing for Stack Filters tools that help people The abil it In a world where a single measure, analyze and connec y to easily t differ search generates millions keep track of themselves. service en s in a st t of hits, effective filters are ized wa andard y - key. Filters remove what’s New fr is in demand. amewo unimportant for you. being c rk reated. s are playfulness! Real Time Instead of relying on Cloud Backups Social Gaming Google, we monitor and As long as access to report on events in real Digitally tend your connectivity remains garden or feed your time. Speed and variety limited, we will need to take precedence over pet – via social media. store virtual data locally. Social gaming on web- reflection. sites like Facebook is exploding. 32
  • 33. new conditions for media companies blet d Ta Media Market 2.0 s an ader alls E-re puters ith Pay W Competition from new Com ash w ies will is aw tablet ompan players is forcing media mark et and - More c to charge for . to forge alliances to The -readers ting pos t attemp edia produc re ts ne we , crea d ia lm digita enue mode ls a preserve their relevance uters w me comp ies for ne v New re sted. and customer relation- t sibili cts. being te ships. produ physic al Media Exp er ienc ty Inte rne e s Back to Reality hen tici es a alu he re t of Aut er v t Phys Thi Intensified competition um fter ink i ngs bein cal obje means going back to ons ing a sh: th red- C ng g con c ts a ra dc mak i nect re basics: New products cha ncial c ty an wn Like ng them ed onlin and services must cater fina entici lly gr o u e uth y, loca de. you mbrella smarter. , a whe s tha to consumers’ genuine it a rain n it’s ibil fair tr . goin t tell needs. nd g to a Geo-service s mobilit y Mobile Geographical Apps positioning ity in digital serv With 3 b Real ices is fast illi loads, Ap on+ down- ented e expanding. Rev Augm ombin eal your ple’s App sto eras c location, you’ll has chan ged use o re le cam the web Mobi t from & be sent al what’s happen phones – f cell- n w visu ing there. fo from a ca r everything conte lity for ne and e a t y rp to games enter’s level and r nces. Utili ne. ie o . exper inment in enterta seamlessness 33
  • 34. 2010 – Year of the E-reader? If 2009 was the year of the mobile app, then 2010, according to all predictions, will be the year of the e-reader. But what does this mean for Bonnier? The major American breakthrough for the of questions about this: ‘Okay, so you have A paperback book is cheap, lightweight, e-reader came in 2009, when Amazon’s the books, but which device should I buy?’ durable and can be read anywhere with- Kindle was said to have sold 2 million And we shouldn’t hide the fact that this out worrying about batteries. Why would units since its introduction. Several com- is a way for us to fuel the rise of a new anyone buy an expensive e-reader? petitors have since arrived on the scene, market.” but this year the true battle over market “If I’m waiting for a bus or plane and can share begins. In January, Apple finally In terms of charging for content, some buy, download and begin reading the exact released its iPad. For Bonnierförlagen, fear a repeat of the mistakes made by the book I want, right then and there – it gets these developments will make it possible film and music industries. How can the very interesting. Another advantage is that to release a wide selection of titles on the same mistakes be avoided? anyone can have all their reference litera- digital market. ture collected in a single device instead of “There are differences. For one, music and carrying around a pile of books.” The discussion so far has been more about films already existed in digital formats and the device than its content. What will were therefore easily spread online, as op- What is the biggest challenge? Bonnier do to change this? posed to printed books which require a lot of extra work to be displayed as e-books,” “To make e-books available in a format “We have the largest selection on the says Dimert. “Also, authors and publishers that readers want, on the e-readers, Swedish market, and in 2010 we plan to have a lot more experience now than they smartphones and computers they want to make it available in e-book format,” says had ten years ago and are less afraid that read them on, and for a price they’re will- Magnus Dimert, manager for Bonnier- e-books will ruin the market. That said, ing to pay,” says Dimert. “We need to find a förlagen Konsument. “This includes we need to be quick to develop flexible so- everything from extremely niched titles to lutions, for example digital watermarking well-known authors. Starting this year, all technology. We need to make our books of Bonnierförlagen’s fiction and textbook easy to find, buy and read. The worst thing titles will be published in digital format. we could do is add loads of digital rights We’ve also developed digital versions management protection, which makes it of several hundred titles in our existing much more difficult to get started reading. catalogue. And, of course, the e-book will We need to have legal alternatives that are evolve over time. So far, most e-books are better than illegal ones.” only read in text format, but textbooks can also be illustrated with moving images One common question is why people and sound. It will be incredibly exciting to should have to pay for content in the first follow developments in this area.” place, especially since publishers can avoid the costs of printing, storage and In February 2010 Bonnier-owned Adlibris distribution. launched its e-reader, Letto. That Bonnier would suddenly launch a hardware device “The largest costs are related not to print- for the first time in 200 years came as a ing and distribution, but to development surprise to many. According to Dimert, of content. Certainly, some costs are elimi- however, it was a natural move. nated, making it possible for us to offer lower prices for e-books than for printed Magnus Dimert is Bonnierförlagen’s “By offering the combination of an e- books. But the value-added tax in Sweden manager of digital book develop- reader and content, we’ll have greater is currently higher for e-books – 25 per- ment and the driving force behind possibilities to give users a high-quality cent, instead of 6 percent – which adds to the e-reader Letto. experience,” he says. “We’ve gotten a lot the price.” 34
  • 35. business model that will properly compen- films and so on. At the same time, mobile of an e-book, then our books should be sate authors over time. We have long ex- phones are evolving extremely rapidly.” available. But this doesn’t mean that we’ll perience in publishing printed books and stop printing books. The printed book will cooperating with authors and bookstores, Does this mean that Bonnier has lost its remain the most common reading format but this is an entirely new product for us. faith in printed books? for a long time to come.” The market is exploding right now – near- ly all hardware suppliers are talking about “Not at all. The e-book is a complement e-readers and portable touch-screen tab- to the printed book. It’s up to us to satisfy lets that can be used for reading, to watch that need. If someone wants to get a hold 35
  • 36. Prizes and Grants Each year Bonnier and Bonnier-owned companies award prizes and grants worth various amounts both to employees as well as to members of the public. Among the most well-known is the Stora Journalistpriset (Great Journalist Award), which has been presented since 1966 and is Sweden’s most prestigious journalism award. A comparable prize is awarded in Finland and Estonia. The year 2008 marked the start of the GROW program, which provides Bonnier employees with the possibility of working in another country for three months. A total of 31 people have taken advantage of the program so far, and 34 new people will take part in this global ex- change program in 2010. Bonnier Sales Awards is a competition established by Bonnier AB management in 2007 to encourage and reward desirable performance and positive results within the Group’s sales operations. All sales staff, including sales managers, employed by a Bonnier company can participate. Sverker Olofsson Shannon Mendis Juha Tuominen Sveriges Television, winner of the Great Bonnier Corporation, United States, MTV3, Finland, Field Sales Representa- Journalist Award participant in the GROW program tive of the Year at Bonnier Sales Awards “It was an incredibly powerful experi- “My GROW period, three months at “I had a great year last year, and I ence that’s hard to describe adequately. Bonnier Publications in Helsinki, think the reason is that I try to find It was a strong confirmation of my meant more to me than words can say. solutions for my customers’ business journalism skills and my work. I never Everything from launching the new challenges, rather than only selling ads. thought I would even be considered for Olivia website to experiencing a new Just to be nominated meant a lot to me, the prize. And the ceremony was also culture, including meeting new people not to mention winning the award. It wonderful, something to remember within Bonnier and exploring the city motivated me and gave me extra energy forever. I’ve almost never been greeted of Helsinki. One of the main things to to do my best every day for MTV3. It with so many warm words and pats on remember is to take it for all it’s worth. made me even more committed to the the back from so many friends and col- Dance as if no one is watching you even company, too. When we watched video leagues. When my CEO pointed out that if it’s the silliest dance you’ve ever done. clips of the ceremony afterwards with my portrait will hang with those of the I met some wonderful people and tried all of the MTV3 sales staff, I’m sure biggest names in journalism, I under- things I never thought I would. It’s an many of my colleagues thought: ‘I want stood that this was really, really huge.” experience I will never forget.” to be there next year.’” 36
  • 37. Internal Prizes & Grants: External Prizes & Grants: Albert Bonnier 100th Anniversary Private Stipend Albert Bonnier Prize for Business Owner of the Year Susanne Enblom, Ann Eriksson and Carina Söderman, (Dagens Industri) Bonnierförlagen Bicky Chakraborty, Elite Hotels (2008) Bonnier Sales Awards (2008) Albert Bonnier Stipend Fund for Swedish Authors Sales Manager of the Year: Jonas Irebjörk, TV4 Sverige Johannes Anyuru, Anita Goldman, Ulf Peter Hallberg, Telephone Sales Representative of the Year: Patrick Notaro, Kristian Lundberg and Staffan Söderblom Bonnier Corp Juha Tuominen Field Sales Representative of the Year: , Albert Bonnier Stipend Fund for Young and New MTV OY Authors Rookie of the Year: Linn Thyselius, SF Media Johan Jönson, Fausta Marianovic and Malte Persson Gerard Bonnier Employee Stipend Expressen’s Per Wendel Prize Nina Ulmaja, Pontus Dahlström and Leena Valtonen, Christian Holmén and Micke Ölander, Expressen Bonnierförlagen Gerard Bonnier Essay Prize GROW 2009 Gunnar D Hansson Jonas Westin, TV4, Shannon Mendis , Bonnier Corp, Malin Westman, Bonnier Carlsen, Kristin Mack Alnaes, Gerard Bonnier Poetry Prize Bonnier Media 2, Maria Lanner, mama, Nia Williams, Helena Eriksson David Borg, Sydsvenskan, Erik Wannerlid, Spoon, Jorid Aldrin, Bonnier Tidskrifter, Michael Goesele, Bonnier Maria Bonnier Dahlin Foundation Stipends for Corp, Sigurd Eriksen, Bonnier Publications, Elizaveta Current Young Swedish Artists Matusova, Delovoy Peterburg, Lisa Julius, Bonnier Corp, Sofia Bäcklund, Kristina Matousch and Viktor Rosdahl Christoffer Cederschiöld, SF Bio, Renée Meyer, Weldon Owen, Gabriella Green, Weldon Owen, Tuuija Kuusela, Albert Bonnier Foundation 100th Anniversary Tammi, Amie Hrabah, Bonnier Corp, Audrey Bay, Bonnier Stipend Fund Corp, Michelle Makmann, Bonnier Corp, Päivi Koskinen, Helena Eriksson, Gunna Grähs, Carola Hansson, Gunnar MTV3, Ylva Lundberg, Homeenter, Mikko Väisanen, MTV3, Harding, Claes Hylinger, Kurt Mälarstedt, Steve Sem- Maria Brunckhorst Schmidt, Bonnier Publications, Patricia Sandberg, Jan Stolpe and Johan Svedjemark Schmidt, arsedition, Steffen Trannerup, Bonnier Publica- tions, Simon Lindberg, dn.se, Kaisa Filppula, Bonnier Publi- Great Journalist Award cations, Monika Klinar, Finance, Anna Essling, TV4, and Tine Kinga Sandén, Sydsvenskan, Sverker Olofsson, Lund, Bonnier Publications SVT, Per Hermanrud, TV4, Karin af Klintberg and Jane Magnusson, SVT Åke Bonnier Private Foundation 75th anniversary Stipends and Albert Bonnier Stipend Fund Great Journalist Award, Finland Martin Blomgren, Dagens Industri, Björn Gunnelöf, Vi i Villa, Katri Makkonen, YLE, Petri Saraste, MTV3, Salla Vuorikoski Björn Hedensjö, di.se, Thérèse Dyhlén, Bonniers Konsthall, and Jussi Eronen, MTV3, Minna Lindgren, Helsingin Sano- Charlotte Jenkinson, Allt om Mat mat’s monthly supplement Tor Bonnier and Albert Bonnier, Jr. Stipends The Bonnier Award, Estonia Emma Almgren, Sydsvenskan Tryck, Mats Andersson, Tarmo Vahter, Eesti Express DNEX, Leif Barklund, DNEX, Jan-Olof Bengtsson, Kvälls- posten, Anna Bäsén, Expressen, Fredrik Cederman, Osterwold Prize of Hörbuch Hamburg Expressen, Johanna Einarsson, Sydsvenskan, Paula Sundin, Best Male Speaker: Gustav Peter Wöhler Sydsvenskan, Ingrid H Fredriksson, Sydsvenskan, Björn Best Female Speaker: Ulrike Grote Gustavsson, Expressen, Ronny Johannesson, Kvälls- Best Author’s Reading: Andreas Steinhöfel posten, Annelie Lindbergh, Dagens Nyheter, Ulrika Ringö, Dagens Nyheter, Teresa Lindstedt, Sydsvenskan, Hasse Olsson Prize for Finance Journalist of the Year Jan Malmborg, Dagens Nyheter, Hans Olsson, Dagens Niklas Svensson and Johan Stambro, TV4 Nyheter, Therese Ottem, DNEX, Ann Persson, Dagens Nyheter, Sven Riedel, Dagens Nyheter, Peter Österlind, Sydsvenskan, Margareta Rost Taylor, Expressen, Alexandra Selimson, Dagens Nyheter, Alf Sjögren, Sydsvenskan, Åsa Sjöström, Sydsvenskan, Anders Stardh, DNEX, AnnCharloth Stjärnstrand, Kristianstadsbladet, Åsa Tellerstedt, DNEX, and Lena Whitman, Expressen 37
  • 38. Board of Directors 1 2 3 4 5 6 7 8 9 10 11 12 1. Carl-Johan Bonnier, Chairman 7. Hans-Jacob Bonnier 2. Jeanette Bonnier 8. Börje Andersson 3. Pontus Bonnier 9. Lars Carlberg 4. Bengt Braun 10. Per-Olov Atle 5. Pernilla Ström 11. Claes Hallin 6. Arne Karlsson 12. Christian Caspar, Co-opted 38
  • 39. Group Management 1 2 3 4 5 6 7 1. Jonas Bonnier, President & CEO Bonnier AB 2. Torsten Larsson, CEO Bonnier Broadcasting & Evening Paper and Bonnier Entertainment 3. Sara Öhrvall, Director of Research & Development, Bonnier AB 4. Maria Curman, CEO Bonnier Books 5. Göran Öhrn, CFO Bonnier AB 6. Casten Almqvist, CEO Bonnier Business Press and Bonnier Digital 7. Ulrika Saxon, CEO Bonnier Magazines and Bonnier Morning Paper 39
  • 40. Financial report, Bonnier AB 2009 Tough Year with Positive Surprises In 2009, Bonnier AB’s advertising rev- after net financial items decreased by Entertainment’s sales increased by 6 per- enues shrunk by slightly more than SEK 2 SEK 1.8 billion, with a year-end result of cent. EBITA was SEK 255 million (SEK 251 billion. Adjusted for variations in exchange SEK –228 million. This includes planned million). SF Bio continued its strong ticket rates as well as for acquisitions and divest- write-offs for goodwill of SEK 886 million sales and reported its highest profits ever ments, the decrease amounted to slightly (SEK 637 million). Profits excluding good- in 2009. The films that had the most view- more than SEK 2.38 billion, which was 21 will write-offs were at SEK 658 million ers during the year were The Girl with the percent lower compared to 2008. Due to (SEK 2.17 billion). Dragon Tattoo, The Girl Who Played with the acquisition of C More and unfavorable Fire and Harry Potter and the Half-Blood foreign currency exchange rates, write- Books’ sales increased by 13 percent. Prince. Swedish film company Svensk offs for goodwill increased by SEK 249 EBITA was SEK 710 million (SEK 568 Filmindustri finished the year off strong million to a total of SEK 886 million. Even million), which was the business area’s with its distribution contract for Fox’s the net financial items decreased, which best result yet. Continued strong success Christmas blockbuster Avatar in Norway, in turn meant a higher average debt level in Germany is due in part to sales of Denmark and Finland. At the end of the (primarily due to the acquisition of C More Stephenie Meyer’s Twilight series, which year Bonnier Amigo Music was sold. in December 2008) as well as a markedly contributed greatly to the business area’s higher interest rate in the new loan agree- increased profits. Even in Sweden profits Business Press’ sales decreased by 25 per- ments set in June 2009. For the Group, increased and a larger market share was cent, but with divestments accounted for, the sweeping cost-saving program none- taken. In Finland, the U.K., Australia and the decrease was only 17 percent. EBITA theless counteracted some of the negative the U.S. book sales decreased; Finnish was SEK 62 million (SEK 194 million). In effects. After a marginal improvement Tammi revenues were exceptionally high terms of percent, this business area was during December, the yearly EBITA* was in 2008 due to sales of the final Harry hardest hit by weak advertising sales. SEK 1.19 billion, compared to an EBITA of Potter book. Norwegian Cappelen Damm Profits for Swedish DI-gruppen have more SEK 2.41 billion for 2008. continued to develop and held its position than halved. While the market was tough as a market leader. in Denmark, in the Baltic countries it was The total sales for Bonnier AB increased nearly in free fall. During the spring and in 2009 by 4 percent compared with Magazines’ sales decreased by 9 percent. summer, the Croatian business.hr and the the previous year, totaling SEK 30.9 EBITA was SEK –13 million (SEK 466 mil- Latvian Diena and Dienas Bizness were billion. Growth occurred primarily in lion). In Denmark and Sweden, profits sold. Significant cost-saving measures were the business areas Bonnier Broadcasting were at the same level as losses in the U.S. carried out in 2009, primarily within op- & Evening Paper, Bonnier Books and American advertising sales continued to erations in Central & Eastern Europe. Bonnier Entertainment. be very weak. Our operations managed to keep and in some cases increase their Morning Papers’ sales decreased by 13 per- The business area Bonnier Books signifi- market share. In 2009, six titles were cent, in the wake of extremely weak adver- cantly improved its profit (+25 percent), acquired that further strengthened our tising sales. EBITA was SEK –375 million achieving its best result ever. The profit market position. Despite considerable (SEK –161 million). The number of printed for Bonnier Entertainment was very stable cost-saving measures, the decrease in ad- copies has had a stable development during and the movie theaters had their best vertising revenues reduced profits. the year. Considerable restructuring costs year yet. The other business areas went in have negatively affected profits even during the other direction, mostly due to lower Broadcasting & Evening Papers’ sales 2009. Stockholm City, among others, was advertising revenues. increased by 24 percent. The acquisition restructured and during autumn moved of C More accounts for 29 percent of the operations to the business area Magazines. By the end of December 2009, share- increase. EBITA was SEK 991 million (SEK But as reported earlier, the decrease in holders’ equity had increased, including 1.37 billion). C More, which was acquired advertising sales have hit print media minority interests, to SEK 7.1 billion, a at the beginning of December 2008, has hardest. decrease of slightly more than SEK 1 billion developed strongly. For TV4, MTV Media compared to 2008. Net debt in relation to and Expressen, lower advertising sales re- Other includes common Group activities shareholders’ equity, including minority sulted in lower profit levels for 2009. But it and functions. The effect on the Group’s interests (the gearing ratio) increased to should be noted that TV advertising sales EBITA of these activities was SEK –445 1.19 (1.06) by the end of December. Profit haven’t been hit as hard as those for print. million (SEK –278 million). 40
  • 41. Net sales by business area Net sales by business area MSEK MSEK 2009 2008 2007 10,000 Bonnier Books 6,710 5,917 6,314 Bonnier Magazines 5,671 6,202 6,031 8,000 Bonnier Broadcasting & Evening Paper 9,524 7,703 6,979 Bonnier Entertainment 4,203 3,969 4,019 6,000 Bonnier Business Press 1,866 2,495 2,525 Bonnier Morning Paper 3,196 3,678 3,787 4,000 Other –303 –367 –448 Bonnier AB total 30,867 29,597 29,207 2,000 0 ag ks Ev adc nes En g P g & t s r Bu tain r ne en pe es e M oo ap Pr m in in Pa i az B en t ss as ng ni r te si or o M Br EBITA* by business area Operating profits (EBITA*) by business area MSEK MSEK 2009 2008 2007 Bonnier Books 710 568 678 1,000 Bonnier Magazines –13 466 699 Bonnier Broadcasting & Evening Paper 991 1,374 1,159 800 Bonnier Entertainment 255 251 252 Bonnier Business Press 62 194 337 600 Bonnier Morning Paper –375 –161 38 Other –445 –278 –318 400 Bonnier AB total 1,185 2,414 2,845 200 0 -200 EBITA* margin % 2009 2008 2007 Bonnier Books 10.6 % 9.6 % 10.7 % -400 Bonnier Magazines neg 7.5 % 11.6 % ag ks Ev adc nes En g P g & t s r Bu tain r ne en pe es e 10.4 % 17.8 % 16.6 % M oo ap Bonnier Broadcasting & Evening Paper Pr m in in Pa i az B en t 6.1 % 6.3 % 6.3 % ss as ng Bonnier Entertainment ni r te 3.3 % 7.8 % 13.3 % si or Bonnier Business Press o M Br Bonnier Morning Paper neg neg 1.0 % Other n/a n/a n/a Bonnier AB total 3.8 % 8.2 % 9.7 % Operating capital MSEK 2009 2008 2007 Tangible and intangible assets excl. goodwill 4,314 4,792 4,563 Working capital 143 90 331 Other financial assets 193 182 173 Goodwill 10,982 11,788 8,468 Operating capital 15,632 16,852 13,535 Net debt 8,497 8,690 6,691 Shareholder’s equity and minority interests 7,135 8,162 6,844 Financing of operating capital 15,632 16,852 13,535 Gearing ratio (net debt/shareholders’ equity) 1.19 1.06 0.98 Earnings MSEK 2009 2008 2007 Net sales 30,867 29,597 29,207 EBITA* 1,185 2,414 2,845 Operating profit 212 1,816 2,710 *EBITA is the operating profit before capital gains/losses, Net financial items –440 –283 –285 share of profit/loss in associated companies and goodwill Profits after financial items –228 1,533 2,425 as well as other acquisition-related write-offs and depre- Profit for the year –381 1,052 1,542 ciations. 41
  • 42. Organization Bonnier Books Broadcasting & Business Press Digital Entertainment Magazines Morning Paper Evening Paper Bonnierförlagen Expressen Bonnier Bink Homeenter Bonnier Bold Printing Business Press Corporation Group International Bonnier Media MTV Media Dagbladet SF Bio Bonnier Dagens Nyheter Deutschland Børsen Publications Bonnier TV4 Dagens Industri Svensk Bonnier SDS Group Publishing Filmindustri Tidskrifter Cappelen Damm Tammi Organization as of January 1, 2010 42
  • 43. Editor: Niklas Sessler Graphic Design: Elin Eriksson Text: Jonas Malmborg Niklas Sessler Gunnar Ahlström Jonas Leijonhufvud Photos: Niklas Palmklint Magnus Skoglöf Karl-Oskar Bjurenstedt Karoliina Ek * Cover Photo: Sound-dampening material covers a wall at sound studio Frekvens in Stockholm, where audio books are recorded for Anders Malmsten Elin Eriksson Bonnier Audio. Project Manager: Susan Moynihan Paul Hansen Susann Werner Marie Nilsson Per-Anders Jörgensen Bonnier AB Gunnar Rehlin Grzesiek Kawecki SE-113 90 Stockholm, Sweden Copy Editor: Fredrik Sjöshult Mikael Olsson +46 8 736 40 00 Bert Menninga Zach Stovall info@bonnier.com
  • 44. The story continues at bonnier.com