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Modestly lower operating result for Wegener in 2011
The Executive Board of Koninklijke Wegener NV (‘Wegener’) has provided the following update regarding the figures for the year ending on 31 December 2011, in anticipation of the presentation of the results which is scheduled for 14 March 2012.
Developments
The key financial developments over the last year were:
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The operating result (before special items) in 2011 was modestly lower than the result of 2010: approx. 60 million euros in 2011 (2010: 62 million euros).
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Revenue in 2011 fell by 3%, primarily as a result of the drop in advertising revenue.
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Advertising revenue for print fell by almost 10% compared to 2010, partly due to the poor economic circumstances in the market and partly due to a greater preference on the part of advertisers for other media, such as the internet.
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Revenue from circulation remained virtually the same for the year.
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Net liabilities at the end of the 2011 amounted to approx. 65 million euros, 23 million euros less than the net liabilities of 88 million at the end of 2010; this is the result of tight liquidity management.
Prospects
Economic conditions in the marketplace are expected to remain under pressure in 2012. This will have an adverse effect on advertising revenue, which will decrease further. Rising revenue from digital products will not be able to compensate for these decreases. For that reason, in the current financial year - more so than previously - Wegener will have to make efforts to consolidate its digital strategy. The plans launched in 2011 for effectuating the transformation process towards a new organisation - with integrated portfolio management in the regions taking priority – will be implemented in 2012. The unremitting changes in the market have necessitated the shaping of new insights into the future organisation, with respect to both local publishers and Wegener as a whole. Additionally, greater efforts will have to be made to create an organisational model whose cost levels are substantially lower and which has a lower level of staff on an ongoing basis, to a proportion to be announced in a later stage. These measures are intended to ensure that the operating result (before exceptional items) and the cash flow is maintained in 2012 and the years beyond to such a positive degree that the continuity of the business is guaranteed on the longer term.
Apeldoorn, The Netherlands, 12 January 2012
Executive Board
Koninklijke Wegener NV
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Wegener producten
Dagbladen
7 regional newspapers and free daily De Pers. Daily reach of over 3 million people.
Huis-aan-huiskranten
Over 225 local door-to-door papers. Weekly reach of 6.8 million people.
Online
National network of news and special interest sites, monthly reach of 3,4 million people.
Speciaal Media
Concept and realization of print and new media products.
The job site for MBO and HBO, 800,000 monthly visitors and thousands of new jobs each week.
Site for new and used cars,
2.8 million monthly.
Website with daily local discount offers of at least 50%.
Producer of newspapers and newspaper-style magazines.
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