Bonnier Publications Increases Profits 50 percent

Bonnier Publications ended 2010 with an operating profit (EBITA) of DKK 220 million. This result is created based on a turnover of DKK 1.68 billion, giving a contribution margin of 13 percent. In 2009, operating profits (EBITA) were DKK 144 million, meaning an increase of 53 percent.

Headquartered in Copenhagen, Bonnier Publications is Scandinavia's largest magazine publisher. The Group has publications and activities in Denmark, Norway, Sweden, Finland, Russia and the Netherlands. Among the best known titles are Illustreret Videnskab (Science Illustrated), Historie (History), I Form (In Shape) and Costume.

"The results were very satisfactory," says CEO Michael Cordsen. "Revenue remained basically stable, but was positively affected by favorable exchange rates with the Swedish krona. It means a lot to us because we have a lot of our sales in Sweden.

In 2010 the company focused on increasing the profitability of subscription sales, says Cordsen. "Among other things, we have received new tools for analysis so we can improve our ROI for marketing. That means selling fewer magazines but earning more."

The year-end result for 2010 raises expectations for 2011, but Cordsen calls for caution. "We have put considerably more money into launches, development and investments in 2011," he says. "I expect a good result for 2011, but it's still too early to judge whether we'll reach the level of 2010."