A Challenging Year

Bonnier’s turnover amounted to SEK 29.17 billion in 2012, a decrease of 2 percent compared with the previous year. The EBITA margin went from 4.2 percent (SEK 1.26 billion) in 2011 to 2.8 percent (SEK 806 million) in 2012.

“While our daily newspapers and magazines did well in 2012, retaining or improving their profitability while facing a historic downturn in advertising, it was in TV and books that the results decreased markedly,” says Jonas Bonnier, CEO for Bonnier AB.

“Earnings before goodwill and amortization amounted to SEK 555 million (950), and earnings before tax to SEK -217 million (664). The majority of the decline from last year was due to the weaker results from the previously very profitable book and broadcasting operations,” says Jonas Bonnier. “Despite a historical peak for TV4 in advertising sales, the earnings from broadcasting were lowered due to increased rights costs and a weak Finnish economy and advertising sales market.

“The year 2012 was altogether a very challenging year for Bonnier, as well as for the media industry in general. On the bright side were significant improvements at southern Swedish daily Sydsvenskan, cinema chain SF Bio’s continued strong growth in earnings and the Danish business daily Børsen’s fantastic results in a difficult market.”

Books Nordic’s earnings increased during 2012, while EBITA shrunk significantly to SEK 147 million (379). The decrease was due in part to a general downturn in the market: During 2012 book sales fell some 13 percent in Sweden. Part of the decrease can also be attributed to divestments and acquisitions from 2011, when Bonnier Utbildning was sold and WSOY was bought. During 2012, Pocket Shop was acquired, the leading paperback bookseller in Sweden, with stores in Sweden as well as in Finland and Germany.

Books International’s earnings decreased somewhat, and EBITA was SEK 214 million (277), a decrease attributable primarily to a general downturn in the German book market and the absence of any megasellers. During 2012, Bloomsbury Verlag was acquired in Berlin.

Broadcasting’s earnings increased somewhat during 2012, while EBITA was nearly halved, ending at SEK 385 million (731). The lower results were due in large part to increased investments in programming and broadcast rights in an advertising market that, in Finland above all, grew worse than expected. The Swedish advertising market continued to be strong even if local advertising was somewhat worse than expectations, which were perhaps set too high. The results were offset by planned cost-savings and the newly established news production and distribution company Nyhetsbolaget and Sweden’s only 24-hour news channel TV4 News.

Business to Business had lowered earnings in 2012, while EBITA, primarily due to strong results from Denmark’s Børsen, grew in comparison to 2011 and ended at SEK 80 million (56).

Magazine’s earnings decreased by 5 percent during 2012. The EBITA was relatively unchanged at SEK 142 million (164). The results were lower due to a downturn in the Nordic markets, while the U.S.-based Bonnier Corporation achieved better results. The year was characterized by continued restructuring in all markets.

News Sweden, which consists of Bonnier’s Swedish daily newspapers, showed greatly reduced revenues, while EBITA improved and amounted to SEK 232 million (222). The greatest improvement was for Sydsvenskan, which after restructuring in 2011 and 2012, achieved an EBITA on the plus side, like its fellow daily newspapers.

Growth Media consists of Bonnier’s digital media companies with a focus on global growth within the areas of publishing tools & leads, digital toys, gaming, and rights & moving images, via companies such as Mag+, Spoon, Toca Boca, Bonnier Gaming, SF Bio, Svensk Filmindustri, Sonet and Scandinavian Studios. The EBITA during 2012 for the business area was SEK 222 million (79). The reason for the significant improvement was the continued strong growth of SF Bio, which during 2012 had a record year with over 12 million cinema visits, an increase of 11 percent over the previous year.

Other consists of common Bonnier-wide activities and functions. This includes the costs for setting up Bonnier Solutions, a shared service center for Bonnier’s Nordic operations. These common activities affected Bonnier’s EBITA during 2012 by SEK -616 million (-645).

Gearing ratio (net debt in relation to shareholders’ equity) amounted to 1.17 (0.98). The congolmerate’s liquidity, in the form of liquid assets and unused credit, continues to be good and at the end of December amounted to SEK 5.7 billion (6.2).

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