Bonnier’s operating profit improved in 2013 compared with 2012 and EBITA was SEK 1,004 million (854). Net sales for 2013 amounted to SEK 26,688 million, a decline of 8.5 percent mainly attributable to divestments and structural changes. Bonnier’s earnings before tax increased to SEK 1,730 million (-217) mainly due to the merger between SF Bio and Finnkino.
“In 2013 the focus was on improving profitability, which was achieved. As expected, we saw a sharp decline in print advertising. We are therefore pleased that our three print-intensive business areas – News Sweden, Magazines and Business to Business – are all having a strong year and together achieved an EBITA of SEK 662 million,” says Göran Öhrn, CFO and acting CEO of Bonnier AB.
“On the broadcasting side, TV4 has had a very strong year, while we see significant challenges in the pay-TV business, especially outside Sweden. In Finland the weak economic trend and a shrinking advertising market continued to squeeze MTV’s results.”
“In the spring SF Bio merged with Ratos-owned Finnkino. This transaction contributed to a further strengthening of Bonnier’s financial standing. Our financial standing, with available liquidity of SEK 8.2 billion, provides substantial maneuverability for the future,” says Göran Öhrn.
Books Nordic increased sales, and EBITA improved to SEK 217 million (149), mainly attributable to the Swedish business. Earnings for Bonnier’s Finnish book operations improved slightly in a very challenging market.
Books International’s sales fell, mainly due to a general decline in the German book market, and EBITA was SEK 185 million (214). The British book operations at Bonnier Publishing succeeded in both growing and improving profitability.
Broadcasting’s sales fell, though EBITA improved to SEK 406 million (386). TV4 achieved outstanding earnings after strong advertising sales and continued development of the channel and rights portfolio. The C More pay TV business continued to face a challenging situation, especially in the markets outside Sweden. MTV in Finland implemented major cost-cutting measures during the year.
Business to Business significantly increased sales through growth, especially in the Eastern European markets and EBITA was SEK 88 million (79). The Norwegian business, including Dagens Medisin and Norsk Helseinformatikk, showed strong profitability growth and Denmark's leading business newspaper Børsen equaled its record earnings from 2012.
Growth Media includes digital media companies with a focus on global growth. Sales fell in 2013 and EBITA landed at SEK 23 million (230) as a result of the previously mentioned SF Bio deal, and a challenging year for the production and distribution company Svensk Filmindustri.
Total sales for the other companies in the business area grew by 47 percent. Toca Boca continued its rapid growth and reached 60 million downloads, Mag+ doubled its sales and content agency Spoon demonstrated a strong profit growth.
Magazines’ sales fell while EBITA substantially improved to SEK 323 million (151). The US business in Bonnier Corporation posted a profit in 2013, with a rising earnings curve each month during the second half of the year. The drop in sales in the business area is mainly due to divestments in the US business and the downturn in print advertising.
News Sweden’s four daily newspapers had a strong performance in 2013 with improved total earnings despite the continued decline in the advertising market for print during the year. The operating margin for the newspapers, excluding restructuring costs, was strengthened and amounted to 10 percent. A loss in the printing business had a negative impact on total EBITA for this business area, which amounted to SEK 251 million (321) for 2013.
Other includes Group-wide activities and functions. Impact on EBITA from these activities in 2013 was SEK -489 million (-676).
Gearing (net debt in relation to equity) was 0.72 (1.17). The Group's available liquidity, in the form of cash and cash equivalents, as well as undrawn credit facilities, remains very strong and totaled SEK 8.2 billion (5.9) at the end of December 2013.
Net Sales by business area SEK M | 2013 | 2012 |
Books Nordic | 4,132 | 4,096 |
Books International | 2,123 | 2,204 |
Broadcasting | 7,990 | 8,165 |
Business to Business | 1,120 | 1,040 |
Growth Media | 3,251 | 4,216 |
Magazines | 4,343 | 4,910 |
News | 4,572 | 4,735 |
Other | -843 | -190 |
Bonnier AB total | 26,688 | 29,176 |
Further information:
David Salsbäck, acting Director of Communications, +46 736 4047
Note: This text is a translation of the Swedish original and in case of any discrepancies between the Swedish text and the English translation, the Swedish text prevails.