Bonnier Publications Shows Profit in 2009

Despite an economic crisis and plummeting ad sales, Bonnier Publications ended 2009 with a profit of SEK 205 million, a result that ranks it among the best in the magazine industry. With headquarters in Copenhagen, Bonnier Publications publishes a range of language editions of the titles Illustreret Videnskab, Historie, Bo Bedre, I Form, idényt and Costume, among others. Markets include Denmark, Norway, Sweden, Finland, Russia and the Netherlands.

"We are very satisfied with the year-end results," says Michael Cordsen, CEO & President for Bonnier Publications. "Even if there was a big decrease in advertising sales, we managed million kronor profits in the triple digits, among other things, keeping tight control of spending and a cost-saving program that comes into full effect in 2010."

Highlights of 2009 include acquiring 100 percent of two of subsidiaries, Benjamin Media and idényt, as well as the launch of three new titles. "We launched Aktiv Træning in Norway and Sweden, and after summer we launched the beauty and health magazine Evita in Finland," says Jens Henneberg, Executive Vice President & Editorial Editorial Director. "It looks promising, since certain attractive target groups continue to see magazine as the best way to get information about their special interests."

Another lift for the year was the completion of the large book series Videnskabens Univers. "It cost more than SEK 21 million to produce, resulting in a high-quality product that readers  appreciate," says Henneberg. "Sales have been higher than expected."

Bonnier Publications continues to invest in the Internet in 2009 as well. At the end of the year, new sites were launched for Illustreret Videnskab, Historie and National Geographic in all four of the Nordic countries.

"Ad sales for the web in 2009 did not live up to expectations at the start of the year, but we can see that our sites are a good place to recruit new subscribers to the printed magazines, and we are building up the news sites so that they can increasingly become an important sales channel," says Cordsen.

One of the biggest challenges for the year was that print and digital ad sales fell by nearly 25 percent. Magazines whose profits are heavily influenced by the state of the industry they cover - the home and garden titles Bo Bedre and idényt, for example, were affected by downturns in construction and the housing market. Even though Bonnier Publications sees Russia as a growth market, it was hit harder due to lower oil prices. "Our partners were forced to concentrate on navigating the crisis," says Cordsen. "Now it looks like they've hit the bottom, so we have the opportunity to create a new three-year plan with them. We expect to launch a new magazine in Russia later in the year and we're speaking with several Russian publishers about acquiring more titles."