The surfer's money, I love it very much
Ringier Following the consolidation of its Internet offerings, Ringier is also considering earning real money with virtual services.
Ringier Following the consolidation of its Internet offerings, Ringier is also thinking about earning real money with virtual services. Switzerland's largest media company is currently one of the few exceptions. The satisfied faces of the Ringier management at the traditional fall media talk left no doubt about this. "Compared to other publishing houses, we are clearly doing better," Michael Ringier announced confidently. Despite the persistently unfriendly climate in 2003, the company will succeed in maintaining sales and profits at the previous year's level (CHF 1033.3 million sales, CHF 39.2 million profit). Remarkable prospects in view of the difficult environment, in which there is still nothing to gloss over, even in the reader markets. According to CEO Martin Werfeli, the circulations of both Blick and SonntagsBlick were "slightly under pressure" in the current year.
Ringier explained that the main reason why the Ringier media company is nevertheless making ends meet is the consistent cost-cutting program that began in 2001, earlier than at other companies. In 2003, costs were again cut by around CHF 30 million, primarily in Switzerland. The second reason for the lower level of suffering is the emerging Eastern and Central European markets (Romania, Czech Republic, Serbia, Slovakia), in which Ringier massively strengthened its commitment with the purchase of various holdings from Gruner+Jahr as of January 1, 2004. In these markets, which have suffered much less from a decline in advertising, sales and profits grew in the double-digit percentage range (see box).
Blick Online becomes fee-based
Despite the partially positive outlook, cost control remained a constant issue in the current year. The cost-effective consolidation of the Internet offerings has practically been completed. Only the announced new corporate site and a new site for Schweizer Illustrierte are still missing. "These two will follow in the next few months," Werfeli explained to Werbewoche on the fringes of the media discussion.
However, slimming down is not the end of the story for Internet offerings. Now that many newspapers and magazines have already introduced mandatory charges or are at least thinking about it intensively, there are no longer any taboos in this respect at Ringier either. "In addition to Borsalino, which is currently our only service where not everything is free, we will certainly also introduce compulsory charges for editorial content in the future," explains Werfeli. This would be an obvious step, especially for such popular material as that offered by the tabloids. "Basically, the aim in the future must be to valorize all offers that are made available to readers on the Internet."
Black online figures 2006
The obstacles on the way to users' wallets are currently hidden in the still unanswered question of how costs are to be charged. Microbilling is still in its infancy. "However, I am still of the opinion that Blick Online, for example, will make it compulsory to pay in a few years' time," says the CEO.
In view of the losses that Ringier's Internet offering is still making even after the streamlining, this is likely to become a necessity. But Werfeli is optimistic: "We are well on the way to being in the black. I personally expect this to happen in 2006." It is also clear that the online offerings will not remain a problem child for all time. "The Internet will become very important. In terms of the business model, it's only just beginning."
With Cicero to a quality newspaperAfter projects for new publications in recent years have practically all ended up in the Ringier drawers or never found their way out, a new launch is now imminent in Germany. The monthly magazine Cicero is to be launched in Berlin in the first quarter of 2004. The political and cultural author magazine under the direction of Wolfram Weimer, former editor-in-chief of Die Welt, is aimed at a politically, economically and socially interested audience throughout the German-speaking world. Planned print run: 100,000 copies. (dse)
Cautious outlook for 2004The company's presence in the world, both geographically and in terms of economic
Dynamic growth in highly diverse markets pays off for Ringier. In addition to a generally difficult business performance in Switzerland, a lot of black ink is flowing into the company's figures, particularly from the Eastern markets. With the consolidated holdings alone, the publishing business in
Romania, the Czech Republic, in Serbia and the
Slovakia will contribute CHF 200 million to the Swiss media company's coffers in the current year. That is around 20 percent of the current
Group sales. "All of our newspapers in these markets are profitable, in some cases even very profitable", a statement by Michael Ringier that is pure wishful thinking for local newspaper publishers at the moment. For the coming year, CEO Martin Werfeli expects "a very slight upturn in the advertising market". The current signals from the market are consistently good. Michael Ringier is more cautious. He doubts that the upturn in the USA is sustainable. "The core data is not stable enough," he explained. However, the publisher is somewhat more optimistic about the near future for the Asian and European business. Nevertheless, Dufourstrasse is wary of overconfidence. Based on the current outlook, the company has also budgeted "very cautiously" for 2004. (dse)
Only the corporate site and that of SI are still missing to complete the renovation work on the virtual Ringier media house.
Martin Werfeli (left) and Michael Ringier: good in (Eastern) business.
Daniel Schifferle
Ringier explained that the main reason why the Ringier media company is nevertheless making ends meet is the consistent cost-cutting program that began in 2001, earlier than at other companies. In 2003, costs were again cut by around CHF 30 million, primarily in Switzerland. The second reason for the lower level of suffering is the emerging Eastern and Central European markets (Romania, Czech Republic, Serbia, Slovakia), in which Ringier massively strengthened its commitment with the purchase of various holdings from Gruner+Jahr as of January 1, 2004. In these markets, which have suffered much less from a decline in advertising, sales and profits grew in the double-digit percentage range (see box).
Blick Online becomes fee-based
Despite the partially positive outlook, cost control remained a constant issue in the current year. The cost-effective consolidation of the Internet offerings has practically been completed. Only the announced new corporate site and a new site for Schweizer Illustrierte are still missing. "These two will follow in the next few months," Werfeli explained to Werbewoche on the fringes of the media discussion.
However, slimming down is not the end of the story for Internet offerings. Now that many newspapers and magazines have already introduced mandatory charges or are at least thinking about it intensively, there are no longer any taboos in this respect at Ringier either. "In addition to Borsalino, which is currently our only service where not everything is free, we will certainly also introduce compulsory charges for editorial content in the future," explains Werfeli. This would be an obvious step, especially for such popular material as that offered by the tabloids. "Basically, the aim in the future must be to valorize all offers that are made available to readers on the Internet."
Black online figures 2006
The obstacles on the way to users' wallets are currently hidden in the still unanswered question of how costs are to be charged. Microbilling is still in its infancy. "However, I am still of the opinion that Blick Online, for example, will make it compulsory to pay in a few years' time," says the CEO.
In view of the losses that Ringier's Internet offering is still making even after the streamlining, this is likely to become a necessity. But Werfeli is optimistic: "We are well on the way to being in the black. I personally expect this to happen in 2006." It is also clear that the online offerings will not remain a problem child for all time. "The Internet will become very important. In terms of the business model, it's only just beginning."
With Cicero to a quality newspaperAfter projects for new publications in recent years have practically all ended up in the Ringier drawers or never found their way out, a new launch is now imminent in Germany. The monthly magazine Cicero is to be launched in Berlin in the first quarter of 2004. The political and cultural author magazine under the direction of Wolfram Weimer, former editor-in-chief of Die Welt, is aimed at a politically, economically and socially interested audience throughout the German-speaking world. Planned print run: 100,000 copies. (dse)
Cautious outlook for 2004The company's presence in the world, both geographically and in terms of economic
Dynamic growth in highly diverse markets pays off for Ringier. In addition to a generally difficult business performance in Switzerland, a lot of black ink is flowing into the company's figures, particularly from the Eastern markets. With the consolidated holdings alone, the publishing business in
Romania, the Czech Republic, in Serbia and the
Slovakia will contribute CHF 200 million to the Swiss media company's coffers in the current year. That is around 20 percent of the current
Group sales. "All of our newspapers in these markets are profitable, in some cases even very profitable", a statement by Michael Ringier that is pure wishful thinking for local newspaper publishers at the moment. For the coming year, CEO Martin Werfeli expects "a very slight upturn in the advertising market". The current signals from the market are consistently good. Michael Ringier is more cautious. He doubts that the upturn in the USA is sustainable. "The core data is not stable enough," he explained. However, the publisher is somewhat more optimistic about the near future for the Asian and European business. Nevertheless, Dufourstrasse is wary of overconfidence. Based on the current outlook, the company has also budgeted "very cautiously" for 2004. (dse)
Only the corporate site and that of SI are still missing to complete the renovation work on the virtual Ringier media house.
Martin Werfeli (left) and Michael Ringier: good in (Eastern) business.
Daniel Schifferle
