"Immediate growth is not necessary"
Publisher Matthias Hagemann on the sale of Jean Frey AG to Ringier and his new options
Publisher Matthias Hagemann on the sale of Jean Frey AG to Ringier and his new optionsBack to the core business in north-western Switzerland - that is the new motto of the Basler Mediengruppe (BM). Matthias Hagemann, Chairman of the Board of Directors, is already thinking about expansion again - beyond Hauenstein or the national border.last May you still wanted to keep Weltwoche, now you are selling it along with the whole of Jean Frey AG. Why is that?
Matthias Hagemann: Last year, we asked ourselves intensively what our core businesses were. In the publishing sector, we had to decide whether we should continue with our previous national strategy, which would have required major investments, or whether we should withdraw to Northwestern Switzerland. Because the advertising market then collapsed and a considerable part of our planned income was lost, the withdrawal option ultimately prevailed.
But could things be looking up again in terms of advertisements?
Hagemann: Sure, but we have also been trying for eight years to make Jean Frey AG a profitable business for us. At some point, we had to take stock of whether we were successful or not. And that time had come, given the environment. Tamedia also recently affirmed its multimedia strategy and suddenly changed its mind.
The decision to join Jean Frey AG was made by Peter Sigrist and your father. Was it the wrong one?
Hagemann: You can't judge the move back then with today's knowledge. At the time, we felt we had to seize the opportunity because it was one of several possibilities to expand beyond the region. Many difficulties, such as those at Weltwoche, were also unforeseeable. In short, I believe that both decisions - to get in then and to get out now - were the right ones.
The big Swiss media houses have to grow with acquisitions, new projects and circulation increases. BM is an exception with its withdrawal. Does it have a future?
Hagemann: We recently turned the Baslerstab into an expanded free newspaper. We have also launched Tachles and projects in the online sector. In addition, the Basler Zeitung (BaZ) editorial team has new opportunities thanks to the new newspaper rotation. We are in a relatively strong position in our region, a position that the Aargauer Zeitung, for example, still has to work hard to achieve. Our future viability is therefore in no way compromised.
Does this mean that BM can only hold its own in its domestic monopoly market, but not in a competitive environment?
Hagemann: We also have competition. And it's getting stronger and stronger. The commuter newspaper 20 Minuten is a challenge for us in terms of costs, and the NZZ am Sonntag could lead to advertising campaigns being shifted from the daily press to Sunday.
The Berner Zeitung (BZ) believes it has to reach a circulation of 200,000 copies in order to survive in the advertising market. And the BaZ?
Hagemann: These figures may be correct for the BZ. But for a newspaper like BaZ to be able to finance a full editorial team, it needs three cornerstones: it must be based in an economic area with an urban center, cover it optimally and exceed a circulation of 100,000 copies. As long as this is the case with BaZ and our region remains the number two in Switzerland, I don't see a problem.
Apart from the Upper Basel region, however, BaZ has hardly any room for growth.
Hagemann: The Basellandschaftliche Zeitung in Liestal and the Volksstimme in Sissach are doing a good job. But if they were to ask us to work together, we wouldn't refuse a priori. But I also don't believe that this is the only way we can grow. I'm not sure whether the die is definitely cast in the Mittelland. Espace Media Groupe doesn't think so either.
So you see beyond the Hauenstein?
Hagemann: Yes. This is not a priority for us, but there is certainly some growth potential for us there. In Germany too, by the way. If Switzerland were to open up to Europe, the Upper Rhine economic region could become a reality. This would open up new opportunities for the center of Basel and BaZ. Even if this is still a long way off, this should show that we are not retreating behind the seven mountains with our current decision.
Are there already more concrete talks beyond the Hauenstein?
Hagemann: No. The Mittelland Zeitung has only just been launched.
Do you see short-term growth opportunities for BM as a whole?
Hagemann: I don't see any need for this, but I do see certain opportunities, for example to increase our multimedia (radio, TV, Internet).
The SonntagsZeitung wrote that you also want to sell off Birkhäuser and that the entire BM could belong to Tamedia in a year's time.
Hagemann: Both are clearly not true. We never intended to sell the Group. We want to continue the family business with the existing shareholder structure. And the Birkhäuser print shop, with its turnover of 80 million francs, is a cornerstone of the new regional strategy.
Is it fair to say that BM has now completed its restructuring?
Hagemann: Yes. The sale of Jean Frey AG marks the end of what we described as extraordinary restructuring. But of course the company is never finished.
Interview: Markus Knöpfli
Matthias Hagemann: Last year, we asked ourselves intensively what our core businesses were. In the publishing sector, we had to decide whether we should continue with our previous national strategy, which would have required major investments, or whether we should withdraw to Northwestern Switzerland. Because the advertising market then collapsed and a considerable part of our planned income was lost, the withdrawal option ultimately prevailed.
But could things be looking up again in terms of advertisements?
Hagemann: Sure, but we have also been trying for eight years to make Jean Frey AG a profitable business for us. At some point, we had to take stock of whether we were successful or not. And that time had come, given the environment. Tamedia also recently affirmed its multimedia strategy and suddenly changed its mind.
The decision to join Jean Frey AG was made by Peter Sigrist and your father. Was it the wrong one?
Hagemann: You can't judge the move back then with today's knowledge. At the time, we felt we had to seize the opportunity because it was one of several possibilities to expand beyond the region. Many difficulties, such as those at Weltwoche, were also unforeseeable. In short, I believe that both decisions - to get in then and to get out now - were the right ones.
The big Swiss media houses have to grow with acquisitions, new projects and circulation increases. BM is an exception with its withdrawal. Does it have a future?
Hagemann: We recently turned the Baslerstab into an expanded free newspaper. We have also launched Tachles and projects in the online sector. In addition, the Basler Zeitung (BaZ) editorial team has new opportunities thanks to the new newspaper rotation. We are in a relatively strong position in our region, a position that the Aargauer Zeitung, for example, still has to work hard to achieve. Our future viability is therefore in no way compromised.
Does this mean that BM can only hold its own in its domestic monopoly market, but not in a competitive environment?
Hagemann: We also have competition. And it's getting stronger and stronger. The commuter newspaper 20 Minuten is a challenge for us in terms of costs, and the NZZ am Sonntag could lead to advertising campaigns being shifted from the daily press to Sunday.
The Berner Zeitung (BZ) believes it has to reach a circulation of 200,000 copies in order to survive in the advertising market. And the BaZ?
Hagemann: These figures may be correct for the BZ. But for a newspaper like BaZ to be able to finance a full editorial team, it needs three cornerstones: it must be based in an economic area with an urban center, cover it optimally and exceed a circulation of 100,000 copies. As long as this is the case with BaZ and our region remains the number two in Switzerland, I don't see a problem.
Apart from the Upper Basel region, however, BaZ has hardly any room for growth.
Hagemann: The Basellandschaftliche Zeitung in Liestal and the Volksstimme in Sissach are doing a good job. But if they were to ask us to work together, we wouldn't refuse a priori. But I also don't believe that this is the only way we can grow. I'm not sure whether the die is definitely cast in the Mittelland. Espace Media Groupe doesn't think so either.
So you see beyond the Hauenstein?
Hagemann: Yes. This is not a priority for us, but there is certainly some growth potential for us there. In Germany too, by the way. If Switzerland were to open up to Europe, the Upper Rhine economic region could become a reality. This would open up new opportunities for the center of Basel and BaZ. Even if this is still a long way off, this should show that we are not retreating behind the seven mountains with our current decision.
Are there already more concrete talks beyond the Hauenstein?
Hagemann: No. The Mittelland Zeitung has only just been launched.
Do you see short-term growth opportunities for BM as a whole?
Hagemann: I don't see any need for this, but I do see certain opportunities, for example to increase our multimedia (radio, TV, Internet).
The SonntagsZeitung wrote that you also want to sell off Birkhäuser and that the entire BM could belong to Tamedia in a year's time.
Hagemann: Both are clearly not true. We never intended to sell the Group. We want to continue the family business with the existing shareholder structure. And the Birkhäuser print shop, with its turnover of 80 million francs, is a cornerstone of the new regional strategy.
Is it fair to say that BM has now completed its restructuring?
Hagemann: Yes. The sale of Jean Frey AG marks the end of what we described as extraordinary restructuring. But of course the company is never finished.
Interview: Markus Knöpfli
