Ringier: at least 10 percent more sales in 2008
Ringier's turnover at Group level will be 10 to 15 percent higher in 2008 than in the previous year, but the result will be lower than in 2007. In addition, the Zurich-based media group is still confident that Radio Energy can still be rescued. Ringier CEO Martin Werfeli said this on Wednesday at the traditional fall media talk.
Ringier's turnover at Group level will be 10 to 15 percent higher in 2008 than in the previous year, but the result will be lower than in 2007. In addition, the Zurich-based media group is still confident that Radio Energy can still be rescued. Ringier CEO Martin Werfeli said this on Wednesday at the traditional fall media talk.
For the publishing business in Switzerland, Werfeli is still expecting an increase in turnover of around 5 percent. This is despite the fact that the TV magazine sales are no longer included in the calculation. However, profits will also decline in Switzerland, said the CEO, who vehemently denied that Ringier was about to embark on a cost-cutting program. The 50 million savings plan, which recently became public, is a "cost efficiency program" that is reviewing all processes throughout the company, in all countries and also at the Swiss headquarters to ensure they are fit for purpose. "At this point in time, however, it has not yet been decided whether and how many jobs will be cut," said Werfeli, who promised to be very "cautious" in this regard.
However, neither he nor publisher Michael Ringier made any secret of the fact that they are expecting difficult times and a drop in sales of at least 15 percent. However, as they both assume that advertising sales in the online sector will continue to grow in the future and even compensate for the losses in the print sector, they were quite confident. For example, the Media Swiss Group, which operates Scout24's online marketplaces and in which Ringier holds a majority stake, will soon be expanding into Serbia.
When it comes to Radio Energy Zurich, which came away empty-handed in the Uvek's license allocation, Ringier is still full of hope. The company's own lawyers had "found a number of things that could be contested in the Uvek decision", said Werfeli, without divulging any details. There is a lot at stake for Ringier, as the Group bought the channel from Goldbach Media a year and a half ago for around CHF 12 million.
No cannibalization effect
By contrast, the experiment with Ringier's free evening paper, which was launched as Heute and renamed Blick am Abend shortly before Euro 08, is going more positively. "We are currently selling 270,000 copies a day and the number of pick-ups is constantly increasing," said Marc Walder, Head of Ringier Switzerland. The Blick brand is thus also being accepted by a young, urban audience, without any cannibalization effect on the subscribed Blick.
The number of subscriptions is rising slightly (probably thanks to the introduction of early delivery) and single copy sales are stable. "With Blick and Blick am Abend, we are now reaching two target audiences that hardly overlap. It is important for us that we have been able to establish the Blick brand with a new audience," said Walder. Even those people who used both titles would not see the free paper as a substitute, but as a supplement. Because of this success and also because the Blick brand is regional in terms of language, the company is now looking into expanding into the canton of Zug and Lucerne as well as eastern Switzerland with Blick am Abend.
Blick am Abend is also a success in the advertising market. It is massively ahead of the previous year and also above budget, said Walder. However, the paper is not yet profitable.
Markus Knöpfli
For the publishing business in Switzerland, Werfeli is still expecting an increase in turnover of around 5 percent. This is despite the fact that the TV magazine sales are no longer included in the calculation. However, profits will also decline in Switzerland, said the CEO, who vehemently denied that Ringier was about to embark on a cost-cutting program. The 50 million savings plan, which recently became public, is a "cost efficiency program" that is reviewing all processes throughout the company, in all countries and also at the Swiss headquarters to ensure they are fit for purpose. "At this point in time, however, it has not yet been decided whether and how many jobs will be cut," said Werfeli, who promised to be very "cautious" in this regard.
However, neither he nor publisher Michael Ringier made any secret of the fact that they are expecting difficult times and a drop in sales of at least 15 percent. However, as they both assume that advertising sales in the online sector will continue to grow in the future and even compensate for the losses in the print sector, they were quite confident. For example, the Media Swiss Group, which operates Scout24's online marketplaces and in which Ringier holds a majority stake, will soon be expanding into Serbia.
When it comes to Radio Energy Zurich, which came away empty-handed in the Uvek's license allocation, Ringier is still full of hope. The company's own lawyers had "found a number of things that could be contested in the Uvek decision", said Werfeli, without divulging any details. There is a lot at stake for Ringier, as the Group bought the channel from Goldbach Media a year and a half ago for around CHF 12 million.
No cannibalization effect
By contrast, the experiment with Ringier's free evening paper, which was launched as Heute and renamed Blick am Abend shortly before Euro 08, is going more positively. "We are currently selling 270,000 copies a day and the number of pick-ups is constantly increasing," said Marc Walder, Head of Ringier Switzerland. The Blick brand is thus also being accepted by a young, urban audience, without any cannibalization effect on the subscribed Blick.
The number of subscriptions is rising slightly (probably thanks to the introduction of early delivery) and single copy sales are stable. "With Blick and Blick am Abend, we are now reaching two target audiences that hardly overlap. It is important for us that we have been able to establish the Blick brand with a new audience," said Walder. Even those people who used both titles would not see the free paper as a substitute, but as a supplement. Because of this success and also because the Blick brand is regional in terms of language, the company is now looking into expanding into the canton of Zug and Lucerne as well as eastern Switzerland with Blick am Abend.
Blick am Abend is also a success in the advertising market. It is massively ahead of the previous year and also above budget, said Walder. However, the paper is not yet profitable.
Markus Knöpfli
