Others are starving, Ringier is doing well
Switzerland's largest media group reached new record highs in revenue in 2001
The largest Swiss media group achieved record sales in 2001The largest Swiss media group achieved record sales in 2001 By Markus Knöpfli
The family-owned company Ringier increased its turnover by 4.3 percent to CHF 1.062 billion in the 2001 financial year. The resulting profit amounted to CHF 34.8 million (previous year CHF 50.4 million). Publisher Michael Ringier expressed his satisfaction with the result "by and large".
"In good times, Ringier does not do as well as its domestic competitors - but in bad times, we do less badly." With these words, publisher Michael Ringier commented on the 4.3 percent increase in his Group's turnover, the significant profit and the new record cash flow of 121.1 million Swiss francs (previous year 119.3). The publisher explained that Ringier does not currently have to starve: "We live more from readers than any other publisher in this country and less from advertising." 53 percent of Ringier's newspaper and magazine revenues come from sales and only 47 percent from advertising. "Readers are more loyal and more stable than advertisers."
Ringier's sales growth of around CHF 44.1 million is largely due to the acquisition of Druckerei Winterthur and ColorServ: Customer Printing Switzerland increased by 35 million francs. In contrast, the publishing divisions in Switzerland suffered a drop in sales due to declining advertising expenditure. Only Betty Bossi was able to increase sales by 8.3 percent or 5.2 million francs. The business media division (Cash) suffered a severe setback, with sales plummeting by 17.9 percent or CHF 7.4 million. Ringier was satisfied with the circulation figures, particularly for Blick and SonntagsBlick (see page 16).
While business in Eastern Europe is flourishing at Verlag Europa (up 3.8%), Ringier ended its activities in Germany last year. Eastern Europe accounts for 12.9 percent of Ringier's total turnover. In contrast, Ringier Asia only accounts for 3.7 percent with 39.2 million.
At CHF 102.2 million, investments in 2001 were massively below the previous year's figure of CHF 157 million. The most important acquisitions were the purchase of the Winterthur printing plant from the Basler Mediengruppe (BM), the takeover of 49 percent of the Hungarian daily newspaper Nepszabadsag (in which Ringer already has prospects of acquiring a majority stake), 49 percent of the Slovakian daily newspaper Novy Cas and the purchase of the Czech daily sports newspaper Ceskoslovensky Sport and the newspaper printing plant Ceska Prague.
In connection with the failed Jean Frey takeover, Ringier once again accused BM of breach of contract. It may be true that Ringier's first offer was too low, but BMG had sold to Swissfirst before a final price negotiation. There, too, Ringier was rebuffed despite an offer that was 25 to 33 percent higher, he said.
The CEO also confirmed that Ringier is currently working on a weekly newspaper à la Weltwoche (WW 13/02) and a consumer magazine. However, a decision on these projects will not be made until the fall at the earliest.
Gentle criticism of SonntagsBlick, but... Michael Ringier also commented on the "Borer case". He had known that a story about ambassador Thomas Borer was in the making, but he had not interfered. But "if I'd had to decide that day, I probably wouldn't have run the story. I was missing a few relevant approaches. In hindsight, however, it was right that Mr. Nolte (SoBli editor-in-chief) brought it up. Everything that came up fully justifies the story. I defend the publication out of conviction." As Thomas Borer always makes himself public, Ringier treats him in the same way, he added.
The family-owned company Ringier increased its turnover by 4.3 percent to CHF 1.062 billion in the 2001 financial year. The resulting profit amounted to CHF 34.8 million (previous year CHF 50.4 million). Publisher Michael Ringier expressed his satisfaction with the result "by and large".
"In good times, Ringier does not do as well as its domestic competitors - but in bad times, we do less badly." With these words, publisher Michael Ringier commented on the 4.3 percent increase in his Group's turnover, the significant profit and the new record cash flow of 121.1 million Swiss francs (previous year 119.3). The publisher explained that Ringier does not currently have to starve: "We live more from readers than any other publisher in this country and less from advertising." 53 percent of Ringier's newspaper and magazine revenues come from sales and only 47 percent from advertising. "Readers are more loyal and more stable than advertisers."
Ringier's sales growth of around CHF 44.1 million is largely due to the acquisition of Druckerei Winterthur and ColorServ: Customer Printing Switzerland increased by 35 million francs. In contrast, the publishing divisions in Switzerland suffered a drop in sales due to declining advertising expenditure. Only Betty Bossi was able to increase sales by 8.3 percent or 5.2 million francs. The business media division (Cash) suffered a severe setback, with sales plummeting by 17.9 percent or CHF 7.4 million. Ringier was satisfied with the circulation figures, particularly for Blick and SonntagsBlick (see page 16).
While business in Eastern Europe is flourishing at Verlag Europa (up 3.8%), Ringier ended its activities in Germany last year. Eastern Europe accounts for 12.9 percent of Ringier's total turnover. In contrast, Ringier Asia only accounts for 3.7 percent with 39.2 million.
At CHF 102.2 million, investments in 2001 were massively below the previous year's figure of CHF 157 million. The most important acquisitions were the purchase of the Winterthur printing plant from the Basler Mediengruppe (BM), the takeover of 49 percent of the Hungarian daily newspaper Nepszabadsag (in which Ringer already has prospects of acquiring a majority stake), 49 percent of the Slovakian daily newspaper Novy Cas and the purchase of the Czech daily sports newspaper Ceskoslovensky Sport and the newspaper printing plant Ceska Prague.
In connection with the failed Jean Frey takeover, Ringier once again accused BM of breach of contract. It may be true that Ringier's first offer was too low, but BMG had sold to Swissfirst before a final price negotiation. There, too, Ringier was rebuffed despite an offer that was 25 to 33 percent higher, he said.
The CEO also confirmed that Ringier is currently working on a weekly newspaper à la Weltwoche (WW 13/02) and a consumer magazine. However, a decision on these projects will not be made until the fall at the earliest.
Gentle criticism of SonntagsBlick, but... Michael Ringier also commented on the "Borer case". He had known that a story about ambassador Thomas Borer was in the making, but he had not interfered. But "if I'd had to decide that day, I probably wouldn't have run the story. I was missing a few relevant approaches. In hindsight, however, it was right that Mr. Nolte (SoBli editor-in-chief) brought it up. Everything that came up fully justifies the story. I defend the publication out of conviction." As Thomas Borer always makes himself public, Ringier treats him in the same way, he added.
