"We were not independent enough"
Medard Meier, Editor-in-Chief of Bilanz, on the Competition and the Image Crisis Facing the Business Press
Bilanz Editor-in-Chief Medard Meier on the competition and the image crisis of the business pressBy Markus Knöpfli According to Editor-in-Chief Medard Meier, the 25-year-old Bilanz has maneuvered itself quite well through the online euphoria and a changed competitive environment. In view of the looming loss of confidence in the business press, however, he (still) seems somewhat perplexed.
Mr. Meier, how is the birthday boy?
Medard Meier: (smiles) The birthday boy is positioned in a segment that is under pressure - after everything that has happened in the economy. However, the balance sheet remains very well positioned. The readership figures are pleasing. Although we have also lost readers, the others have lost much more. After four great years, we now find ourselves in a not very good environment, which also defines our condition.
Would you describe your condition as not very good?
Meier: It is better than that of the Business Press segment. The financial statements of Wirtschaftsmedien AG (WM AG) at the end of June were in the black. Excluding the online segment, we actually performed extremely well. The current, shortened financial year (July to December 02) will also be absolutely acceptable.
Bilanz has several pillars: The main magazine, books and special editions (including Manager-Bilanz), the "Bilanz Business Talk" on Press TV and the online area. Which areas are profitable?
Meier: Online is of course red. But we accept that because we don't want to do without the Internet as a marketing or archiving tool. The "Business Talk" is supported by our partner Sunrise, we don't have to earn any money here. But it is a good event platform. The special editions and the main magazine generate a profit, while the manager's report is paid for by a sponsor - Arthur Andersen Switzerland for the last five years.
This company no longer exists, who will be the new sponsor?
Meier: We have three to four candidates, but the decision won't be made for another month or so.
In 1997/98 you are said to have made a profit of 750000 francs again after a long red phase. How black are the figures really?
Meier: No, we were only in the red once in the main magazine and the special editions, in the 1995/96 financial year. At that time, we broke away from Senger Annoncen and invested in our own advertising department. In the online sector, however, we lost a total of at least two million francs over three years, which dragged down WM AG's income statement each time.
In the turmoil surrounding Jean Frey AG, the balance sheet remained remarkably quiet.
Meier: Because we already had experience with changes of ownership, I recommended that we keep quiet so as not to break any dishes from the outset. Things are going well now, I feel very comfortable. Filippo Leutenegger may have taken an unconventional approach to his task, but the success is already impressive.
The last two years have been quiet for the balance sheet. There were hardly any innovations.
Meier: Our ratings - from the 300 richest to the best hotels - are becoming increasingly popular. Our Swissair book became a bestseller. We have launched the Special range with twelve special issues a year, and the Manager Balance and, for the last two years, the Fund Balance have also been published four times a year. We achieve this with a 14-strong editorial team.
Nevertheless, some balance sheet offers have also gone quiet: nothing more is heard from the share leader.
Meier: That's right, it was scaled back to a pure service. The guide was probably a great idea, but it simply couldn't be financed.
The New Market balance sheet...
Meier: ...has vanished into thin air. But we're doing other things in its place, such as a wine special soon.
Almost ten years ago, Bilanz merged with Politik & Wirtschaft magazine, and the special editions were launched in the mid-nineties. But there were also missed opportunities: instead of launching a weekly business publication alongside the flagship itself, you let Cash take the lead. Then Borsalino and Moneycab competed with the stock leader, and finally you were overtaken by Stocks. Why did you not occupy these fields, or only half-heartedly?
Meier: We were unable to counter Cash. We also had ideas for a weekly publication, but we never had a publisher with enough money. We also wanted to do something like Borsalino online, but in retrospect it turned out to be almost impossible to finance, even without competitors. I'm therefore glad that a stop came in time. On the other hand, when Stocks came out, I was disappointed at first because it beat us to it. We also had a ready-to-go project with a German publisher as licensor and another Swiss publisher. But today I'm delighted that we didn't get the chance, because the German publisher's magazine has since been discontinued. And it's an open question whether Stocks, with its current 59,000 readers, will survive in today's advertising slump. In short, what you describe as missed opportunities would have been nothing but detours that would have caused us financial problems.
Do you see it the same way with Annabelle Business and Cash Enterprise, which have recently been trying to steal your thunder with women and SMEs respectively - Cash, of course, with an ex-balance sheet man.
Meier: Cash Enterprise will probably not be a business for the time being, but thanks to an estimated 500,000 sponsorship francs per year, it will be a break-even event for the reader benefit alone. And Annabelle Business is not a missed opportunity either. I don't want to segment balance sheet readers. I want a single balance sheet, which is doing very well with a 32 percent share of female readers.
So you're not worried about losing readers?
Meier: No, because business women don't want to be served in a special way, they want to be fully involved in the balance sheet. Of course, we could, indeed should, do more on the subject of women and business. But I don't think it's a good idea to write articles that are all about women.
Is the balance sheet now more of an aircraft carrier, against which all attacks bounce off practically unscathed, or is it more of a little garden, where others eat ever more cheekily over the fence?
Meier: More like an aircraft carrier. However, when Cash came along, we were afraid that we would fall behind because of the different publication rhythms. Instead, the business press segment became really interesting. Finanz&Wirtschaft and HandelsZeitung improved. And they all grew. As a result, the daily newspapers in the business section also grew. Today we even have two Sunday newspapers with a strong focus on the economy. Now that this strong expansion of business reporting has taken place in the Swiss-German media, I can't imagine that everyone is getting away unscathed.
But will the balance sheet escape unscathed?
Meier: I think so, because it is the only monthly magazine in Switzerland, and the circulation figures of the competition from abroad are marginal. But we have to keep the core of Bilanz up to date, be innovative and keep it at the top in terms of quality. After the last three years, we have to give readers a new compass of sorts, because they are frustrated about what has happened to them, especially on the stock markets, and how they have been lied to by banks, asset managers and analysts. This has led to a massive loss of confidence. It will therefore be a major task for the business press to keep these people on board as readers.
You're thinking of the Swissair debacle, the Internet euphoria...
Meier: ...to CS, insurance companies, Ebner - all disasters...
...the discussion about managers' salaries, and now the surprisingly persistent recession - all of this has not only put managers, but also business journalists, in a difficult position. What conclusions have you drawn for the balance sheet?
Meier: You're right, we need to go over the books. Some publishing houses were obviously not prepared enough in terms of training. We, too, didn't cover the basics enough and paid too little attention to what really characterizes a sustainably successful business. The current correction is all the more brutal, which will be a lesson to us business journalists in the future.
What will the specific consequences be?
Meier: Further training certainly needs to be intensified. And we need to take a closer look at the rucksack when hiring new staff. However, the balance sheet is not comparatively bad. Most of our employees have a degree. But the real shame of the analysts and business journalists was that they were too impressed by "new" values. And they dismissed what they had been taught at university as outdated. In the end, they came back to the simple truths: to do business, you have to have equity and make a profit. In short: we were swimming along too much and were not independent enough.
In recent years, Bilanz has lost 21,000 readers and the magazine's circulation is at its lowest level in the last ten years. Is this a consequence of the loss of trust?
Meier: You can see it that way to a certain extent, although our reach is still high by international standards.
How will the balance sheet tackle the next five years?
Meier: In March, we will relaunch the balance sheet and also take into account what we have just discussed. The details have not yet been finalized, but there will be visible changes, including to the content.
Will the journalistic concept with its four pillars be retained?
Meier: That has proved its worth, yes.
You are now 51 years old. How much longer will you be at the helm?
Meier: (hesitates, laughs) I've been with the company since 1984 and editor-in-chief since 1990, and I enjoy the job. It remains fascinating to produce a new balance sheet every month. Ultimately, however, my superiors have to judge me.
Are you thinking about quitting of your own accord?
Meier: No.
Mr. Meier, how is the birthday boy?
Medard Meier: (smiles) The birthday boy is positioned in a segment that is under pressure - after everything that has happened in the economy. However, the balance sheet remains very well positioned. The readership figures are pleasing. Although we have also lost readers, the others have lost much more. After four great years, we now find ourselves in a not very good environment, which also defines our condition.
Would you describe your condition as not very good?
Meier: It is better than that of the Business Press segment. The financial statements of Wirtschaftsmedien AG (WM AG) at the end of June were in the black. Excluding the online segment, we actually performed extremely well. The current, shortened financial year (July to December 02) will also be absolutely acceptable.
Bilanz has several pillars: The main magazine, books and special editions (including Manager-Bilanz), the "Bilanz Business Talk" on Press TV and the online area. Which areas are profitable?
Meier: Online is of course red. But we accept that because we don't want to do without the Internet as a marketing or archiving tool. The "Business Talk" is supported by our partner Sunrise, we don't have to earn any money here. But it is a good event platform. The special editions and the main magazine generate a profit, while the manager's report is paid for by a sponsor - Arthur Andersen Switzerland for the last five years.
This company no longer exists, who will be the new sponsor?
Meier: We have three to four candidates, but the decision won't be made for another month or so.
In 1997/98 you are said to have made a profit of 750000 francs again after a long red phase. How black are the figures really?
Meier: No, we were only in the red once in the main magazine and the special editions, in the 1995/96 financial year. At that time, we broke away from Senger Annoncen and invested in our own advertising department. In the online sector, however, we lost a total of at least two million francs over three years, which dragged down WM AG's income statement each time.
In the turmoil surrounding Jean Frey AG, the balance sheet remained remarkably quiet.
Meier: Because we already had experience with changes of ownership, I recommended that we keep quiet so as not to break any dishes from the outset. Things are going well now, I feel very comfortable. Filippo Leutenegger may have taken an unconventional approach to his task, but the success is already impressive.
The last two years have been quiet for the balance sheet. There were hardly any innovations.
Meier: Our ratings - from the 300 richest to the best hotels - are becoming increasingly popular. Our Swissair book became a bestseller. We have launched the Special range with twelve special issues a year, and the Manager Balance and, for the last two years, the Fund Balance have also been published four times a year. We achieve this with a 14-strong editorial team.
Nevertheless, some balance sheet offers have also gone quiet: nothing more is heard from the share leader.
Meier: That's right, it was scaled back to a pure service. The guide was probably a great idea, but it simply couldn't be financed.
The New Market balance sheet...
Meier: ...has vanished into thin air. But we're doing other things in its place, such as a wine special soon.
Almost ten years ago, Bilanz merged with Politik & Wirtschaft magazine, and the special editions were launched in the mid-nineties. But there were also missed opportunities: instead of launching a weekly business publication alongside the flagship itself, you let Cash take the lead. Then Borsalino and Moneycab competed with the stock leader, and finally you were overtaken by Stocks. Why did you not occupy these fields, or only half-heartedly?
Meier: We were unable to counter Cash. We also had ideas for a weekly publication, but we never had a publisher with enough money. We also wanted to do something like Borsalino online, but in retrospect it turned out to be almost impossible to finance, even without competitors. I'm therefore glad that a stop came in time. On the other hand, when Stocks came out, I was disappointed at first because it beat us to it. We also had a ready-to-go project with a German publisher as licensor and another Swiss publisher. But today I'm delighted that we didn't get the chance, because the German publisher's magazine has since been discontinued. And it's an open question whether Stocks, with its current 59,000 readers, will survive in today's advertising slump. In short, what you describe as missed opportunities would have been nothing but detours that would have caused us financial problems.
Do you see it the same way with Annabelle Business and Cash Enterprise, which have recently been trying to steal your thunder with women and SMEs respectively - Cash, of course, with an ex-balance sheet man.
Meier: Cash Enterprise will probably not be a business for the time being, but thanks to an estimated 500,000 sponsorship francs per year, it will be a break-even event for the reader benefit alone. And Annabelle Business is not a missed opportunity either. I don't want to segment balance sheet readers. I want a single balance sheet, which is doing very well with a 32 percent share of female readers.
So you're not worried about losing readers?
Meier: No, because business women don't want to be served in a special way, they want to be fully involved in the balance sheet. Of course, we could, indeed should, do more on the subject of women and business. But I don't think it's a good idea to write articles that are all about women.
Is the balance sheet now more of an aircraft carrier, against which all attacks bounce off practically unscathed, or is it more of a little garden, where others eat ever more cheekily over the fence?
Meier: More like an aircraft carrier. However, when Cash came along, we were afraid that we would fall behind because of the different publication rhythms. Instead, the business press segment became really interesting. Finanz&Wirtschaft and HandelsZeitung improved. And they all grew. As a result, the daily newspapers in the business section also grew. Today we even have two Sunday newspapers with a strong focus on the economy. Now that this strong expansion of business reporting has taken place in the Swiss-German media, I can't imagine that everyone is getting away unscathed.
But will the balance sheet escape unscathed?
Meier: I think so, because it is the only monthly magazine in Switzerland, and the circulation figures of the competition from abroad are marginal. But we have to keep the core of Bilanz up to date, be innovative and keep it at the top in terms of quality. After the last three years, we have to give readers a new compass of sorts, because they are frustrated about what has happened to them, especially on the stock markets, and how they have been lied to by banks, asset managers and analysts. This has led to a massive loss of confidence. It will therefore be a major task for the business press to keep these people on board as readers.
You're thinking of the Swissair debacle, the Internet euphoria...
Meier: ...to CS, insurance companies, Ebner - all disasters...
...the discussion about managers' salaries, and now the surprisingly persistent recession - all of this has not only put managers, but also business journalists, in a difficult position. What conclusions have you drawn for the balance sheet?
Meier: You're right, we need to go over the books. Some publishing houses were obviously not prepared enough in terms of training. We, too, didn't cover the basics enough and paid too little attention to what really characterizes a sustainably successful business. The current correction is all the more brutal, which will be a lesson to us business journalists in the future.
What will the specific consequences be?
Meier: Further training certainly needs to be intensified. And we need to take a closer look at the rucksack when hiring new staff. However, the balance sheet is not comparatively bad. Most of our employees have a degree. But the real shame of the analysts and business journalists was that they were too impressed by "new" values. And they dismissed what they had been taught at university as outdated. In the end, they came back to the simple truths: to do business, you have to have equity and make a profit. In short: we were swimming along too much and were not independent enough.
In recent years, Bilanz has lost 21,000 readers and the magazine's circulation is at its lowest level in the last ten years. Is this a consequence of the loss of trust?
Meier: You can see it that way to a certain extent, although our reach is still high by international standards.
How will the balance sheet tackle the next five years?
Meier: In March, we will relaunch the balance sheet and also take into account what we have just discussed. The details have not yet been finalized, but there will be visible changes, including to the content.
Will the journalistic concept with its four pillars be retained?
Meier: That has proved its worth, yes.
You are now 51 years old. How much longer will you be at the helm?
Meier: (hesitates, laughs) I've been with the company since 1984 and editor-in-chief since 1990, and I enjoy the job. It remains fascinating to produce a new balance sheet every month. Ultimately, however, my superiors have to judge me.
Are you thinking about quitting of your own accord?
Meier: No.
