Bonnier Annual Review 2014

ANNUAL REVIEW 2014.
2014
www.bonnier.com
Continuously Reinventing Media.
CEO
Strategy for the ­Future.
New revenues, ­collaborations
and digital investments are
key to Bonnier’s long-term
­success.
DURING 2014, Bonnier began the work of
making a radical transformation, and the
board of directors approved a strategy that
extends to 2020. As part of this ­strategy,
our goal is to significantly increase our income from new, primarily digital, revenue
sources over the next years. In this way, we
aim to secure our competitiveness for the
future.
OUR AMBITION IS to pull together our
resources and initiatives on the ­business
area level while at the same making
wide-­ranging investments in updating
our ­operations. The common thread is
new collaboration and investment in
the ­development of technology for innovative services and solutions that meet
­consumers’ and advertisers’ future needs.
THE CHALLENGES WE FACE are very ­familiar,
and they require a fast pace of change.
But we’re standing on solid ground as
we face these challenges. The financial
results for the year are on a level with our
­expectations, and our financial position
­remains strong. Among other reasons
we can be satisfied are the strong growth
of digital revenues for our daily newspapers, and our book operations, which
exhibit both strong results and ­interesting
­possibilities for the future. (Read more
about the financial results on page 30.)
MEANWHILE, OUR TRADITIONAL revenue
sources are under a lot of pressure. And
over the next years, we expect our profitability to remain at the same level as today.
Increasing our profitability by making
short-term improvements isn’t our priority
either. Our task is to ensure that Bonnier’s
business – with its clear journalistic core –
remains competitive over the long term.
IN A TIME WHERE FREEDOM OF SPEECH and
an independent press are ­searingly ­relevant
in the public debate (read more on p. 34),
it is ­especially vital that we truly succeed
with our strategy to ensure Bonnier’s
­important business for the future.
Tomas Franzén,
CEO Bonnier AB
BONNIER ANNUAL REVIEW 2014 3
Contents
5
12
8
This is Bonnier.
Bonnier has been reinventing media for
over 200 years, with values like freedom
of speech at our core.
14
12 Things From 2014.
From success of native ads to TV binge
watching to new threats to journalists,
2014 was an eventful year for media.
18
16
Broadcasting.
Business to Business.
Record sales and digital investments
­marked Broadcasting’s 2014. Platform-­
neutrality’s key, says CDO Cecilia Beck-Friis.
For Business to Business, 2014 was a
­profitable year for its brands – like ­
Fontanka.ru in Russia with CEO Andrus Vaher.
20
22
Magazines.
Digital or in print, magazines still impact
reader’s lives says Karen Lyager Horve,
Editor-in-Chief, I Form.
30 Financial Results 2014.
Books.
Bonnier’s book operations had a strong
year despite tough markets. Says Adlibris
CEO Johan Kleberg: Prices landed right.
Growth Media.
Growth Media continues to expand with
new acquisitions, under the helm of
business area head, Ulrika Saxon.
24
News.
News’ profits were up, aided by digital ad
­sales and successes like Expressen’s viral
sites, says Editor-in-Chief Thomas Mattsson.
Make or Break.
Three different parts of Bonnier face
three different challenges head on, and
each succeeds in its own unique way.
32 Executive Management & Board.
34 Press Freedom.
THIS IS
BONNIER
Continuously reinventing media.
Bonnier is the Nordic region’s
­leading media company, with over
200 years of experience in ­changing
media markets. We are based in
Sweden, have operations in 16
­countries and are wholly owned by
the Bonnier family. Our ­businesses
span the media spectrum, with a
strong historic core in independent
journalism and book publishing.
Now we are working to turn Bonnier
into a leading digital media group.
BONNIER ANNUAL REVIEW 2014 5
Core Values
Freedom of
Speech.
Our commitment to freedom of
speech means:
A strong belief in a pluralistic
­media l­andscape
Passion
for Media.
Our publishing vocation relies on:
A commitment to creating,
s­ electing and ­refining media
content
Commitment
of a Family
Company.
The commitment of a family
company is ­demonstrated by:
Our belief in the power of the
individual is characterized by:
A commitment to protect the
editorial voice from commercial
and political interests and the
courage to publish ­controversial
media content
A consistent focus on informing,
enlightening, entertaining and
provoking
The will to provide open media
channels for many individual
voices
The ambition to c­ reate media
­ roducts that involve ­audiences
p
and inspire ­engagement
Relentless support for­
j­ournalists and ­individuals who
fight for freedom of speech
throughout the world
Power
of the
Individual.
A belief in the creative ­potential
of expertise in m
­ ultiple media
Trust in the opinions, skills and
judgment of individuals
A belief in the transform­ational
power of creativity
A willingness to nurture the
entrepreneurial spirit and to
foster innovative approaches to
long-term growth
A focus on sustainable growth
A family commitment to ethics,
integrity and loyalty
A dedication to strengthen
the company for following
­generations
A firm devotion toward using
our roots as a ­compass for the
future
An openness toward non-­
hierarchical ­discussions and
networks of discourse
A guarantee for the freedom
and ­independence of our unique
and diverse b
­ usiness operations
A sincere respect for l­ong-term
consequences and for the
­environment in which we operate
Business Idea
Ambition
We create, select
and refine a world
of knowledge and
stories.
To be a leading and high-performing
digital media house.
We embrace technology. Bonnier has leading positions in key
media segments, but only about 15 percent of our revenues come
from new sources. By 2017, 30 percent of our revenues should
come from sources sustainable over the long term. With this in
mind, our ­strategy for the next three years focuses on investments
in ­technology, new services and getting the right teams. We need to
develop a culture of strong cooperation across brands, companies
and business areas. If we do this, combined with our journalistic
and literary credibility, the long-term thinking of our owners and
the talent within Bonnier, we have every opportunity to succeed.
Numbers 2014
KEY FIGURES.
Net Sales by Revenue Streams
7 %
Employees: 8,111
Companies,
approximately: 160
Countries: 16
10 %
38 %
20 %
Net Sales:
23,702 SEK M
25 %
Net Sales by Country
4 %
4 % 5 %
6 %
6 %
6 %
6 %
8 %
8 %
14 %
14 %
57 %
57 %
EBITA:
1,103 SEK M
ADS
RETAIL
SUBSCRIPTION
DIRECT SALES
OTHER
SWEDEN
DENMARK
FINLAND
GERMANY
U.S.
NORWAY
OTHER
The Bonnier History
The book-publishing house Albert
­Bonniers Förlag was founded in
­Stockholm in 1837. The ­company’s first
title was an essay by ­Jean-Baptiste
Pérès, called Proof That Napoleon
Never Existed.
Sweden’s first morning ­newspaper,
Dagens Nyheter, was founded by
­newspaperman Rudolf Wall. ­Bonnier first
bought shares in the paper in 1888, and
in 1909 we acquired a majority.
Business daily
Dagens industri launches
1864
Breakfast Must-Read
1973
Silver Screen Stars
Bonnier acquired the major Swedish
film company Svensk Filmindustri,
SF, in 1973. The company was best
known for ­producing most of the
films by Ingmar Bergman and movie
­adaptations of Astrid Lindgren’s
children’s books Pippi ­Longstocking
and Karlsson on the Roof.
1884
August Strindberg
Charged with Blasphemy
When August Strindberg was ­charged
with blasphemy for the short story
­collection Getting Married, publisher
Karl Otto ­Bonnier convinced him to
return to Sweden, where he
was acquitted.
1944
Expressen Decries
the Nazi Regime
In 1944, Bonnier leaders founded the
evening newspaper Expressen in an
effort to counteract Nazi propaganda.
The paper gained a reputation for being
the “little man’s” voice against those in
power, and quickly became the largest
daily in the Nordic area—a position it
maintained for more than 50 years.
1929
Magazines, Here We Come
When Bonnier purchased Sweden’s
largest magazine publisher, Åhlén
& Åkerlund, Tor Bonnier notified son
and future creator of the Bonnier
Group Albert Bonnier Jr. in a telegram
reading “Vogue la galère”
[make it or break it].
1989
Free Press in the Baltics
1997
Hello, Broadcasting
2006
Atlantic Crossing
In 1989, Bonnier created
­Estonian business daily
­Äripäev, printed in Stockholm
and shipped to ­Estonia for
secret, free ­distribution. When
the Soviets cut off oil supplies
to Tallinn, Swedish sister
­publication Dagens i­­ndustri
leased a tanker and delivered
fuel to the ailing nation.
In 1997, Bonnier became
c­ o-owner of the largest Swedish
TV channel, TV4. Within 10 years,
Bonnier had acquired 98.9 percent
of the company’s ­shares. Bonnier
continued to expand its broadcast
operations, adding Finnish TV
channels MTV3 and Sub as well
as Radio Nova in 2005.
In 2006, Bonnier became
­ art-owner of U.S. magazine
p
publisher World Publications. The
following year, Bonnier acquired
Time4Media and The ­Parenting
Group, and formed Bonnier
­Corporation, which now has offices
across the U.S. and ­includes over
30 magazines, an event ­company
and numerous websites.
2011
Plays Well
With Others
The age of the app is in full
swing, and ­Bonnier’s Toca Boca
with its whimsical children’s
toy apps neared the 5 million
download mark by the end of
the year. (As of the end of 2014,
that number was over
82 million!)
And the story continues...
1909
1837
Was Napoleon a Fake?
Selma Lagerlöf of Albert Bonniers Förlag is first
woman to win Nobel Prize in Literature.
1976
1804
We’ve been building with the long-term view of a family company since 1804, when
­Gerhard Bonnier published an anthology of crime stories called Underfulde og ­sandfærdige
­kriminalhistorier (Strange and true criminal histories) in Copenhagen.
MARKET ANALYSIS
12 Things
That Made Us
Think in 2014
From selfies to ­binge-watching series,
smartphones to native advertising,
here are 12 trends and events that
provide a snapshot of how the year
2014 shaped up for media.
Illustration Johan Jarnestad
1
Ads Up
In Sweden, digital advertising
overtook print for the first time. Native
­advertising, ­programmatic, content
marketing and big data helped digital
advertisers reach targeted consumers
in ever better ways.
into the
3 Getting
­Content Business
Distribution channels from Netflix to
Amazon successfully put out their own
content, with award-winning p
­ rogramming
like Transparent – feeding a trend for
“binge-watching” multiple episodes at
a time while building brand loyalty and
­disrupting the entertainment industry
in the process.
By My Selfie
2 All
From Ellen DeGeneres’
s­ tar-studded ­Oscar selfie Tweet
(with a record 3 million retweets on
Twitter) to the ­popularity of media that
focuses on the self, from Instagram to
­SnapChat to WhatsApp, selfies ruled as
­businesses looked for ways they could
be ­monetized.
Not in
4 the Mood
When it was revealed that
­Facebook had ­undertaken
“mood manipulation”
­research with users, the
ensuing uproar forced the
­company to announce it
was tightening the reins
on its research process.
the (Video) News
5 In
Video became a major focus
for newspapers with groundbreaking
efforts such as with the webcast of
live election debates by Swedish rival
papers ­Expressen and Aftonbladet, and
the ­Guardian’s award-winning interactive
video report NSA Files: Decoded.
the
12 What
Big Guy Said
A leaked New York Times ­internal
innovation report on the digital state of
America’s paper of record became a
must-read for anyone in the journalism
business, “one of the key documents of
this media age” said the Nieman Lab,
among others.
Journalists
11 Under Threat
While 2014 started off on a relatively
high note, with the successful release of
Magnus Falkehed and Niclas Hammarström, who were kidnapped
in late 2013 in Syria, their
kidnapping highlights
a disturbing trend that
was brought home in the
bloody attack on Charlie
Hebdo in January 2015.
You’ll Never Guess
10 What Happened Next…
Viral content-sharing sites
such as Buzzfeed
and Vox were
suddenly getting
the attention from
in­vestors that
previously had
been reserved for
platforms such
as Facebook and
Spotify.
9
Pod Luck
Podcasts have been around since
the launch of the iPod, but with NPR’s ­Serial
gaining a global audience, the ­podcast has
grown up. And with online media news and
entertainment channels offering a
wide range of podcasts for
every taste, it’s all
about ­convergence.
Not Without
8 My Phone
6 Happy Ending
for E-Book
Negotiations
Hachette and Bonnier Media
Deutschland’s renegotiation
of their contracts with online
retail giant Amazon were
covered by press the world
over. After several months
of back and forth, Bonnier
Media Deutschland and Amazon
signed an agreement both were
happy with.
7 Law of
Smartphone users check their phones
more than 221 times a day, according
to an October 2014 U.K. report from
Tecmark. Not surprisingly, mobile is
becoming the predominant way users
consume content, with sites like that of
the Financial Times getting 60 ­percent
of their online readers via mobile.
­Diminishing
Search Results
Following an EU court decision,
Google was forced to remove
content in Europe from its
­search results when requested,
as privacy and copyrights
continue to be an evolving
issue ­online for consumers,
­companies and regulators.
BONNIER ANNUAL REVIEW 2014 9
WHAT
HAPPENED
IN OUR
BUSINESS
AREAS
IN 2014?
Financial stability, tough markets.
Digital ad revenues increased,
as did the focus on technology and
­boundary-crossing cooperation.
10 BONNIER ANNUAL REVIEW 2014
BONNIER AB 2014.
ORIGINAL BUSINESS,
STARTED IN 1804
10 COUNTRIES
IN THE NORDIC
REGION AND
EASTERN
EUROPE
BOOKS.
Adlibris Group, Bonnier Books Finland,
Bonnier Media Deutschland, ­Bonnier Publishing,
Bonnierförlagen, C
­ appelen Damm (50 %), Pocket Shop
BROADCASTING.
TV4 Group, MTV, Nyhetsbolaget, C More
TOP COMMERCIAL
NETWORKS IN
SWEDEN & FINLAND
BUSINESS TO BUSINESS.
Bonnier Business Press, Børsen Group
GROWTH MEDIA.
DIGITAL FOCUS AND
GLOBAL ASPIRATIONS
Evoke Gaming, Spoon, Startups, Svensk Filmindustri, Toca Boca
MAGAZINES.
OVER
150 BRANDS
WORLDWIDE
Bonnier Corporation, Bonnier Publications, Bonnier Tidskrifter
NEWS.
Dagens industri, Dagens Nyheter, Expressen,
HD-Sydsvenskan, Bold Printing Group
(SEK M)
600
500
4,000
400
3,000
300
2,000
200
1,000
100
B
Bu
B
sin roa ook
es dc s
a
s
to stin
Bu
g
sin
Gr
ow
es
s
th
M
ed
ia
5,000
B
Bu
B
sin roa ook
es dc s
a
s
to stin
Bu
g
Gr sin
ow
es
th
s
M
M edi
ag
a
az
in
es
N
ew
s
NET SALES TOTAL.
(SEK M)
23,702
(SEK M)
News
6,000
EBITA BY
BUSINESS AREA.
Magazines
NET SALES BY
BUSINESS AREA.
FIVE OF SWEDEN’S
TOP DAILIES
“Our focus lies not in
­maximizing ­Bonnier’s ­profits
during this year or the next,
but in ­strengthening our
­long-term ­competitiveness.”
BONNIER ANNUAL REVIEW 2014 11
BOOKS.
As many book publishers and e-commerce players around the world are having
profitability problems, the hard work and sense of purpose that permeate the
companies within Bonnier Books have resulted in ­operations that have clearly
shown strong and positive results.
PHOTO: PETER JÖNSSON
BOOKS’ GLOBAL PRESENCE
NORWAY
UK
U.S.
FRANCE
FINLAND
SWEDEN
POLAND
GERMANY
JACOB DALBORG, Head of Business Area
“A Successful and
Eventful Year.”
For Bonnierförlagen in Sweden, 2014 was
a pivotal year in a tough market. There was
a yet stronger focus on digital sales, with
some 3,300 digital books now available.
Increased sales of digital audiobooks and
children’s books were notable as well as
the continued crime fiction wave, with Lars
Kepler’s Stalker among the top sellers in
all categories. The group also boasted 33
literature prizes.
Nordic online retailer Adlibris Group
ended the year with strong growth in all
product segments and increased its website
traffic. In the Finnish market, several big
­initiatives led to a 50 percent increase in
sales.
Bookstore chain Pocket Shop also in­
creased sales, and three new stores opened
during the year. Several new spots are under
consideration for the chain’s continued
expansion.
Bonnier Media
Deutschland’s year started
with nine months in an
­intense media spotlight and
successful ­negotiations
with ­Amazon. The group
in­creased sales and had
many successes, ­including
Ullstein’s No. 1 sell­ing
Darm mit Charme.
U.K.-based Bonnier Publishing had a
successful and eventful year as well, with
the acquisition of children’s book publisher
Igloo, the launch of little bee books in New
York and more.
Bonnier Books Finland had a fantastic
literary year, with Finlandia prize winners
Jussi Valtonen and Maria Turtschaninoff
(Tammi). Despite a book retail market that
shrank considerably, the publishing group
increased its profitability.
Cappelen Damm in Norway had particular
success with translated literature and
educational books, selling one-third of all
textbooks in Norwegian schools.
12 BONNIER ANNUAL REVIEW 2014
AUSTRALIA
COMPANIES: Adlibris Group, Bonnier Books Finland, Bonnier Media Deutschland,
­Bonnier Publishing, Bonnierförlagen, Cappelen Damm (50 percent) and Pocket Shop.
NET SALES.
FIGURES.
NUMBERS.
6,000
6,000
5,000
4,000
3,000
2,000
1,000
2012
2013
2014
(SEK M)
EBITA.
500
That was how many
fans of blogger
Alfie Deyes and
The ­Pointless Book
showed up for a book
signing at a Water­
stones in Piccadilly
on Sept. 6 – they were
­expecting 800. The
street ended up being
closed, and mounted
police were called in to manage the crowd.
The Pointless Book was published by
Blink Publishing.
400
300
DID YOU KNOW?
200
100
2012
2013
2014
(SEK M)
Swedish book publisher
Bonnier­förlagen delivers
53,000 books every workday.
Adlibris Advances. Buying books online gets even better.
Nordic online book retailer Adlibris
had a year of growth in 2014, despite
its being a tough year for ­booksellers
­almost everywhere. CEO Johan
­Kleberg explains.
Adlibris had a tough year but ended
strong. How did you do it?
There were two main reasons we had
a strong year-end. In part because
we worked hard with book prices
that are now competitive, but even
more ­important that customers truly
appreciate our responsive site, which
has high conversion rates on desktop
as well as tablet and mobile.
available and more marketing, but
also prices landed right. I think the
critical factor is that the industry
works with a consumer-friendly price
level where the price for an e-book
should be lower than for one that’s
printed. Moreover, VAT prices need to
be harmonized.
Any interesting trends you noticed
for 2014?
Things are beginning to happen in
terms of delivery. For example, a lot
of start-ups focused on “last mile”
­solutions, that is, how and when a
­package arrives to the customer.
Transport and logistics are starting
to be truly sexy.
PHOTO: EVELINA CARBORN
3 QUESTIONS.
Founded in 1997, Adlibris is the largest
online book retailer in the Nordic r­ egion,
with some 10 million books on offer.
E-book sales increased for A
­ dlibris in
2014. What was behind this, and how
can we reach levels like the U.S.?
Several steps were taken in the right
direction. There are more books
Johan Kleberg,
CEO for Adlibris Group
Everybody ­likes
fairy ­tales and
great stories.”
German children’s book publisher Carlsen’s
new book series LeYo! that combines printed
books with an augmented reality app got good
reviews. Readers get multimedia content such
as sounds, music and images using the LeYo!
Augmented Reality App.
PHOTO: BONNIER BOOKS FINLAND
Augmented
Reality Reading
Publisher Saara Tiuraniemi on a successful 2014 for
­Bonnier Books Finland’s children’s and young adult
­literature. Bonnier had more than 60 percent of the
top titles throughout the year in this genre.
BONNIER ANNUAL REVIEW 2014 13
BROADCASTING.
The business area Broadcasting saw more sales than ever at TV4, with big investments in technology and talent. In Finland, MTV showed improvement in a tough
market. Streamlining was the focus for news production company Nyhetsbolaget.
PHOTO: PETER JÖNSSON
BROADCASTING’S PRESENCE IN THE NORDIC REGION.
ROVANIEMI
LULEÅ
KEMI
OULU
SKELLEFTEÅ
UMEÅ
KAJAANI
ÖSTERSUND
CASTEN ALMQVIST, ­Head of Business Area
Swedish production company Nyhetsbolaget
continued during 2014 with its stream­
lining efforts. Among other results were
a more modern editorial organization and
a platform-neutral way of working, which
resulted in a significant increase in the
number of news-related streaming starts.
During the year, local news broadcasting
was ­discontinued. A network of countrywide
reporters for the national news broadcasts
was launched.
In Finland, macroeconomic
conditions continued to be a
­challenge. Despite this, MTV
­succeeded in ­maintaining
its strong position within
free commercial and pay TV,
and the ­company’s digital sales increased.
­Furthermore, MTV entered into a sales
­agreement with radio station NRJ, which
further strength­ened the company’s position
in the Finnish radio market.
Bonnier acquired Telenor’s 35 percent of
C More*, giving it full ownership of the cable
network. Manfred Aronsson succeeded
Johan Kleberg as CEO.
*AS OF JAN. 1, 2015, C MORE BECAME PART OF BROAD­
CASTING AFTER HAVING BEEN A PART OF BONNIER
­H OLDING DURING 2014.
14 BONNIER ANNUAL REVIEW 2014
POHJANMAA
SUNDSVALL
Bigger, Better,
Stronger.
For Bonnier ­Broadcasting,
2014 was marked by digital
transformation. But even in
terms of linear TV viewing,
TV4 strengthened its position
and continued as the No.1
commercial network in
Sweden, while on-demand
service TV4 Play had strong
growth. Streaming starts
on all platforms totaled 262
­million. In addition, TV4 Play
was launched as the first service in Scandinavia on the digital media player Apple TV,
as well as on Google’s e
­ quivalent, Chrome­
cast. The TV4 Group entered a strategic
partnership with YouTube as well. In Sweden,
advertising demand remains high.
KOKKOLA KUOPIO
BOLLNÄS
FALUN
TAMPERE
PORI
LAHTI
GÄVLE
OSLO
VÄSTERÅS
KARLSTAD
UPPSALA
STOCKHOLM
JYVÄSKYLÄ
TURKU
JOENSUU
MIKKELI
LAPPEENRANTA
KOTKA
HELSINKI
SKÖVDE ÖREBRO
NORRKÖPING
TROLLHÄTTAN
LINKÖPING
GÖTEBORG
JÖNKÖPING
BORÅS
HALMSTAD
HELSINGBORG
COPENHAGEN
VÄXJÖ
KALMAR
KARLSKRONA
MALMÖ
COMPANIES: TV4 Group, MTV, Nyhetsbolaget, C More*
74
NET SALES.
FIGURES.
NUMBERS.
6,000
5,000
4,000
3,000
2,000
1,000
2012
2013
2014
(SEK M)
minutes
That’s the average time per day a Finn spends
watching MTV across all platforms and
channels.
EBITA.
600
DID YOU KNOW?
500
400
300
200
100
2012
2013
2014
(SEK M)
MTV was crowned the 2014
­social media company in Finland
at the Some Awards. MTV won
because it “is an example for
other companies in the way it
creates active debate and inter­
esting content for social media.”
Wide But Niched. New video ad
platform to be first of its kind.
PHOTO: PETER JÖNSSON
3 QUESTIONS.
In fall 2014, the ­Broadcasting business area began
work on a ­cross-Bonnier video ­platform with plans
for a Q2 2015 release. Carl Waldenor of TV4, project
manager for the platform, ­explains.
What exactly is the new cross-Bonnier video
­platform?
It’s a video advertising platform that, when it’s
launched in the spring, will offer customers a simple
and transparent way of buying ad space on Bonnier’s
collected online video stock. It will be a premium
product that will significantly simplify the purchase
of video ad space from Bonnier.
How is it different from other products on the
market?
With the new platform, we’ll be first out on the
­market to launch a programmatic premium service
for video advertising. Shortly after launching, we
also will strengthen the product by offering the
possibility of purchasing targeted video ads based on
powerful and reliable first-party data from ­Bonnier
Insights. (Read more about Insights page 24.)
What will the new platform mean for customers?
For the first time, our ­customers will be able to
buy video ads on a number of Bonnier’s sites
­simultaneously, instead of needing to contact each
respective company individually. With targeted
­advertising, our customers will be able to reach
a higher level of ­relevance than ever before.
Hit sitcom Solsidan on TV4 has Sweden’s top
Facebook page with over 750,000 followers.
During the year, TV4’s own Facebook page
increased as well by 500 percent, to 240,000
followers.
PHOTO: PETER JÖNSSON
Sweden’s Biggest
Facebook Page
During
2015 we will
­continue
to expand
our ­digital ­resources
and invest h
­ eavily in
­technology, talent and
content in order to
provide our users
and partners with the
­strongest offer ­
regardless of platform.”
Cecilia Beck-Friis, Executive VP for
­business and technology, TV4.
BONNIER ANNUAL REVIEW 2014 15
BUSINESS TO BUSINESS.
2014 was yet another record year for Bonnier Business to Business. Profit
­increased for the fifth consecutive year, and the business area in general showed
good growth in its digital products and formats.
PHOTO: PETER JÖNSSON
BUSINESS TO BUSINESS’ PRESENCE IN EUROPE.
SWEDEN
NORWAY
ANDERS ERIKSSON, Head of Business Area
ACQUISITIONS
Declining print revenues are still the
single strongest underlying risk for f­ uture
­profitability, though a number of businesses
in the group ­managed to increase their print
advertising rev­enues, despite a shrinking
market.
More specific challenges arose in Russia,
where a new law will come into effect
­January 1, 2016, limiting foreign owner­
ship in media companies to 20 percent.
Decisions on how to proceed given the new
­circum­stances will be made in 2015.
Management of Bonnier Business to
Business is looking forward to 2015 with
confidence and will actively focus, among
other things, on digital growth initiatives to
secure future profits and development.
ESTONIA
RUSSIA
LITHUANIA
DENMARK
“Focus on Digital
Growth Intiatives.”
Digital transformation has been a key focus
during 2014 with special attention being paid
to ensure growth in digital subscriptions
and paid content across all businesses. The
niche B2B activities have also been a key
­driver for improved performance.
During the year ­environmental
news publisher
­Miljörapporten
Förlag and business product and
service company
Bonnier Business
Media Sales were
­acquired in Sweden
and Pärnu Conferences in Estonia.
FINLAND
POLAND
GERMANY*
SLOVENIA
COMPANIES: Bonnier Business Press, Børsen Group.
FIGURES.
NET
SALES.
*In early
2015, news
site Deutsche
Wirtschafts
­Nachrichten
was ­acquired
in Germany.
NUMBERS.
228,200
1,000
800
That’s the ­total number of ­subscriptions for
the various ­business and trade ­publications
within Business to Business at Bonnier.
600
400
200
2012
2013
2014
(SEK M)
EBITA.
150
DID YOU KNOW?
We will ­actively
focus on ­digital
growth
­initiatives to ­secure
­future profits and
­development.”
16 BONNIER ANNUAL REVIEW 2014
­
100
50
2012
2013
2014
(SEK M)
More than 95 percent of
Norwegian general practice
doctors subscribe to m
­ edical
reference series Norsk
­Elektronisk Legehåndbok.
Independent View. Russian news from Fontanka.ru.
Independent news website ­­­­
Fontanka.ru is growing in readers
and advertisers, says Andrus Vaher,
CEO for Bonnier Business ZAO and
Ajur-Media, of which Fontanka.ru is
a part.
What is Fontanka.ru and who is the
audience?
Fontanka is the leading news website
for St. Petersburg. We consider our
audience to be everyone 16 and older
in St. Petersburg – it’s a general
website. We’ve grown a lot in the last
year, 25 percent in readership.
We have about 250,000 unique
visitors each day. There’s
also Fontanka.fm, which is
the main web radio site for
St. Petersburg, with music,
news and other typical
radio programming.
How has the year gone for Fontanka.ru?
The year was very strong. Our sales
moved against the market trend:
­digital display ads were down in
­Russia but we were up 18 percent.
We’re strong in providing city news,
but also news on
events like
the Sochi
­Olympics
and the
situation
in Ukraine,
which bring
us lots of readers. ­Fontanka.ru has
been a good ­alternative to Kremlincontrolled m
­ edia, in terms of both
news and opinion.
PHOTO: NADEZHDA ISHKINYAEVA
3 QUESTIONS.
What are the biggest challenges for
Russian media right now?
Leaving aside sales, to maintain an
independent and objective view on
Russian internal and foreign politics.
Quite often we can see strong selfcensorship – you’re not pushed to
censor what you publish, you just do
it to protect yourself. But still there
are a lot of independent channels like
­Fontanka.ru and federal online news
sites like echo.msk.ru, gazeta.ru,
­vedomosti.ru and tvrain.ru.
Fontanka.ru, launched in September
2000, is the most influential online
media in St. Petersburg, read by onethird of all Internet users in the city.
It was acquired in 2014.
Andrus Vaher, CEO
for ­Ajur-Media, parent
­company for Fontanka.ru.
PHOTO: BØRSEN
More Readers Than Ever
The traffic of va.se, the website for Swedish business magazine
Veckans Affärer, grew by more than 155 percent in 2014.
Børsen has
shown that
you can
­develop a
niche ­product and
make m
­ oney… There
is a need for trusted
content. If you lose
out by not knowing,
you will make sure
you know.”
Anders Krab-Johansen, CEO & Editor-in-Chief, Dagbladet
­Børsen, quoted in a story from Danish trade press Journalisten.
BONNIER ANNUAL REVIEW 2014 17
GROWTH MEDIA.
With a broad range of digital media companies with high international growth
­potential, Bonnier Growth Media had lots of challenges and ­opportunities,
with acquisitions and investments in both new and established companies.
PHOTO: PETER JÖNSSON
GROWTH MEDIA’S GLOBAL PRESENCE.
NORWAY
DENMARK
ULRIKA SAXON, Head of Business Area
The structural decline
in the home entertainment market (DVD
purchase and rental)
had a big effect on the
distribution division of
Svensk Filmindustri,
where restructuring
continues for growth
in digital channels as
well as in production.
During the year,
Svensk Filmindustri
signed a production
and distribution deal
with the French StudioCanal,
and Tre Vänner released the
films Bamse and the City of
Thieves and The Boy with the
Golden Pants.
Bonnier Growth Media in­
vested in the startup ­Refunder.
se, which with the help of ­marketing in
Bonnier channels established itself as the
biggest cashback site in Sweden.
In the fall, the business area invested
in the brand-new KIT, a media company
­focused on viral mobile and social content.
18 BONNIER ANNUAL REVIEW 2014
SWEDEN
CANADA
Finding new
­companies to grow.
The business area Growth Media works
to develop a broad portfolio consisting of
­digitally oriented media companies, parallel
with investments in new growth companies.
During 2014, the acquisition Redbet
was integrated with Evoke Gaming, and
production company Tre Vänner with Svensk
Filmindustri.
Toca Boca continued
to launch worldwide paid
apps for children, increasing
revenues by 38 percent; it’s
now a world leader in this
segment alongside Disney.
YouTube multi-channel
network United Screens
was launched and during
its first operational year
reached 160 million views
per month.
FINLAND
U.S. (SAN FRANCISCO)
MALTA
U.S.
(NEW YORK)
COMPANIES: Evoke Gaming, KIT, Mag+, Sago Sago, Scandinavian Studios, SF Anytime,
Spoon, Svensk Filmindustri, Tailsweep, Toca Boca, Tre Vänner. Bonnier Growth Media
also has minority shares in FLX, Refunder.se, United Screens.
NET SALES.*
FIGURES.
NUMBERS.
86 million
downloads
500
400
300
200
100
2012
2013
2014
(SEK M)
That’s the number of
downloads so far for ­popular
kids’ app ­developer Toca
Boca and its subsidiary Sago
Sago, making it one of the
most popular for parents –
and children – worldwide.
PERCENT REVENUE
GROWTH.*
DID YOU KNOW?
2012
84 %
2013
2014
50 %
9 %
* FIGURES ABOVE HAVE BEEN ADJUSTED BY
EXCLUDING SF’S REVENUES AND INCLUDING
SHARE OF MINORITY-OWNED COMPANY REVENUES.
FURTHER, ­A DJUSTMENTS HAVE ALSO BEEN MADE
TO REFLECT EVOKE GAMING’S NEW ­A CCOUNTING
PRINCIPLES.
Tre Vänner/Svensk ­Filmindustri’s
new deal for j­ ointly produced
English-­language films and
series with French d
­ istribution
and ­production company
­StudioCanal means that Tre
­Vänner productions will now be
part of the world’s third-largest
film library.
PHOTO: MAGNUS LAUPA
3 QUESTIONS.
Beloved Apps. How Toca Boca takes the top.
Björn Jeffery, CEO for Toca Boca,
talks about challenges the company
is meeting.
What does it take to become one of
the top apps for kids worldwide?
Primarily it’s about focusing on
­creat­ing really good products that kids
love. If you don’t have that, you’ve got
no foundation to build on. It’s an art
that many underestimate, but we’ve
found a formula that works really well.
What does Toca Boca get out of having
its HQ in Silicon Valley?
There are many reasons we’re here.
One is to be close to our partners –
B2B with Web TV
Where do you go from here?
The biggest challenge for app makers
will still be in monetization. The
usage is there, the growth is there,
but being able to make money from it
will continue to prove difficult. There
is a lot of money flowing into apps, but
it is very unevenly distributed across
­developers. You’re either doing great
or struggling. Getting on the right
side of that line will be the biggest
challenge in 2015. Toca Boca is already
there, but if we rest we might easily
slip over to the wrong side.
Toca Boca designs digital toys for kids
in the form of apps. It launched its first
app in 2011, and as of the end of 2014
it had over 82 million downloads. It has
offices in San Francisco, Stockholm
and Toronto.
The world of digital rights
is moving fast, and more
artists and creators ­realize
how important it is
for them to own
their content
over all ­digital
­platforms.”
Jenny Ericsson, Head of Partners and
Digital Rights, United Screens.
PHOTO: UNITED SCREENS
Content agency Spoon’s award-winning web
TV series Welcome to My Cab continues to
be a hit for customer Volvo Trucks, with over
100,000 views on YouTube. Go behind the
wheel with truck drivers around the world,
who show exactly what it is that makes a
truck theirs.
Apple, Google, Microsoft and Amazon
– that all have headquarters on the
west coast. It’s hard to build relation­
ships long-distance, and they’re
­integral to our business. Just one
example is when Apple included us
as one of 25 developers in their RED
campaign in the fall. We even got a
personal mail from Tim Cook thanking
us for our participation!
FUN FACT: SPOON PRODUCED THIS YEAR’S BONNIER ANNUAL REVIEW.
BONNIER ANNUAL REVIEW 2014 19
MAGAZINES.
The global magazine industry remains challenged in the unprecedented
­transformation process taking place. However, the Magazines business area was
able to maintain strong profit levels for 2014 and at the same time invest heavily
in the digital area.
PHOTO: PETER JÖNSSON
MAGAZINES’ PRESENCE IN EUROPE AND THE U.S.
STOCKHOLM
OSLO
MICHAEL CORDSEN, Head of Business Area
COPENHAGEN
NEWPORT, R.I.
New digital offers
and products
The Magazine business area consists of
Bonnier Publications with headquarters
in Denmark and subsidiaries in Norway,
Finland and Sweden; Bonnier Tidskrifter
in Sweden; and Bonnier Corporation in the
U.S. Among the largest brands
are Illustreret Videnskab
(Science Illustrated), Amelia
and Field & Stream.
In order to focus on areas
that have future digital
­potential, two ­divestments
took place in 2014. The
­company in ­Russia and the
local Finnish magazines
were sold. The internation­
al magazines continue to
be published in Finland.
Bonnier Corporation
­acquired The Promotion
Company, and this event
business is expected to
have a positive impact
in 2015.
Print advertising and
newsstand sales con­
tinued to decline, while
­subscription sales were
more stable. The group
achieved significant
growth in digital sales
driven, for example, by
social media traffic
in Sweden and the
relaunch of websites
in the U.S. (see story
at right).
Bonnier ­Tidskrifter
and Bonnier
­Publications introduced
new digital offers and products to sub­
scribers in order to ­secure the largest and
most profitable revenue stream in the group.
NEW YORK CITY
SAN FRANCISCO
IRVINE, CA
WINTER PARK, FL
COMPANIES: Bonnier Corporation, Bonnier Publications, Bonnier Tidskrifter.
30%
NET SALES.
FIGURES.
NUMBERS.
5,000
4,000
3,000
2,000
1,000
2012
2013
2014
(SEK M)
That’s how much total online traffic comes
from social media for Bonnier ­Tidskrifter’s
websites, a huge increase from the 10
­percent it stood at in 2013, when blogs and
search were the biggest sources. With
2 million unique visitors weekly, Bonnier
­Tidskrifter is the fourth-largest online
­publisher in Sweden.
EBITA.
DID YOU KNOW?
300
250
200
150
100
50
2012
2013
2014
(SEK M)
20 BONNIER ANNUAL REVIEW 2014
HELSINKI
You could buy an Airbus
A380 with the ­accumulated
profit of all the issues of
Bonnier Publications’ Science
Illustra­ted. The title celebrat­
ed its 30th birthday in 2014
with five new digital services.
PHOTO: JON WHITTLE
3 QUESTIONS.
More Mobile. Upping traffic
with a responsive redesign.
In 2014, U.S. publisher Bonnier
Corporation relaunched 15 websites
using a custom content management
system, Sandcastle, with the goals of
increasing traffic and digital revenue.
David Butler, Vice President for Digital
Operations, explains.
What platform changes did you implement to significantly impact traffic?
We introduced responsive design
to improve our user experience on
mobile devices, we improved the
shareability of site content through
improved social sharing tools, and
we introduced changes in our URL
structure and site taxonomy to improve
search performance.
What were the most dramatic results?
Each of those areas of focus has
been effective, but the most dramatic
results have come on mobile devices.
Right now Bonnier Corporation gets
almost half of its traffic through
mobile, and the launch of responsive
functionality has had a twofold effect
– more mobile visitors coming to our
sites, and more pages viewed per visit.
For Popular Science, for example, that
combination resulted in a dramatic 147
percent lift in page views during the 30
days post-launch.
How has the redesign affected digital
ad sales?
The lift in audience has ­given our sales
teams more ­impressions to sell. We
have also seen improved visibility for
display ads, ­higher click-through rates
and ­increased client interest in new
­mobile-specific ad units.
Bonnier Corporation is one of the
largest special-interest publishing
groups in America, with more than
30 ­multichannel magazine brands.
David Butler, Vice President for Digital Operations at Bonnier Corporation
Fashion Site Booms
Karen Lyager Horve, Editor-in-Chief, I Form,
the largest Nordic health and fitness m
­ agazine,
in an essay on magazines' i­mportance.
PHOTO: I FORM
Fashion social shopping site Stylista.no from
Bonnier Media in Norway keeps getting
bigger, offering 135,000 unique weekly users a
customized experience. Ad sales for 2015 are
budgeted for 75 percent over 2014.
When I suddenly get a hug from
an ­unknown woman in the
­supermarket line, I’m touched
and proud. I Form may be ‘just’
a ­magazine, but
knowing we’re ­making
an ­important ­difference
in readers’ lives is the
world’s best food
for job satisfaction.”
BONNIER ANNUAL REVIEW 2014 21
NEWS.
Profitability improved for the daily newspapers during 2014 as combined digital
ad revenues increased significantly to over half a billion Swedish kronor, nearly
­compensating for decreases in print ad sales.
PHOTO: PETER JÖNSSON
NEWS’ PRESENCE IN SWEDEN.
GUNILLA HERLITZ, Head of Business Area
Digital ­Revenues
­Improve Bottom
Line.
Profits for Swedish daily
­Dagens Nyheter were just
­under SEK 173 million, SEK
70 million more than the previous year.
Subscription increases and lower discounts
meant reader revenues increased for the
fifth year in a row. Digital ad sales i­mproved
by 50 percent, nearly compen­sating for the
downturn in print ad sales. The year ended
with a huge gala ­celebrating the 150th
­anniversary of the paper’s founding.
Swedish daily
­Expressen reported
a big increase in web traffic. Total ad
­revenues ­improved thanks to digital ad
sales ­in­creasing by SEK 72 million, to SEK
211 million. Downsizing in conjunction with
­restructuring reduced profits by SEK 65
million. The downward trend in circulation
slowed some at the end of the year, ending
at just over 14 percent. Profits were
SEK 20 million.
Business daily Dagens industri raised ­profit
­margins to 23 percent,
with profits of SEK 170
million. The theme and
conference o
­ perations
brought in new revenues of SEK 18 million.
The ­downturn in circulation and print ad
sales was less ­marked than for other papers
in the b
­ usiness area, but ­increases in digital
ad s­ ales were lower than at the other papers
as well.
On July 1, southern Swedish
daily ­Sydsvenskan ­acquired
Sweden’s fifth-largest morning
paper, ­Helsingborgs Dagblad
(HD) and its four sub­sidiaries. The fall saw
­comprehensive downsizing and restructuring
of the different operations. Profits of SEK
18 million were ­significantly better than the
acquisition estimate, thanks to careful cost
controls. Printer Bold in Malmö became part
of H
­ D–Sydsvenskan in the middle of the year.
Profits for Bold Stockholm improved by
SEK 33 million compared to 2013, to
SEK -5 million.
22 BONNIER ANNUAL REVIEW 2014
STOCKHOLM
BORÅS
GÖTEBORG
HELSINGBORG
LUND
MALMÖ
COMPANIES: Dagens industri, Dagens Nyheter, Expressen, HD–Sydsvenskan,
Bold Printing Group
NET SALES.
FIGURES.
NETTOOMSÄTTNING.
NUMBERS.
5,642,573
5,000
4,000
That’s the ­average number of unique
­visitors per week in 2014 for all of the news
sites within Bonnier News.
3,000
2,000
1,000
2014
2012
2013
2014
(SEK M)
EBITA.
500
400
DID YOU KNOW?
300
200
100
2012
2013
2014
(SEK M)
SEK 6,545,899 was the
­record-breaking ad sales total
for a special million-copy issue
of Dagens industri’s Di Weekend
magazine on Oct. 17, 2014.
Going Viral. Expressen Labs
tests the waters.
With a free hand to test new
ideas and very quick turnaround
times, the newly established
Expressen Labs’ viral sites are
reaching big audiences, like
Omtalat – launched not just in
Sweden, but Norway, ­Germany
and Turkey as well. The p
­ aper’s
Editor-in-Chief Thomas
­Mattsson explains.
Why did you start Expressen
Labs?
Because Expressen was growing
well on the digital side, both
in traffic and revenues, but we
needed to change our corporate
culture to more quickly launch
products, reach new a
­ udiences
and create new business. We
can’t compete with young entrepreneurs if all decisions must
be made by steering groups
who need to keep in mind the
company’s core operations,
technology, brand and ad sales
requirements.
Thomas Mattsson,
Editor-in-Chief,
Expressen
Dagens Nyheter’s Editor-in-Chief Peter
Wolodarski is one of Sweden’s top media
Twitterers, with 88,820 Twitter followers
(as of January 2015).
increased its market share in
mobile, compared to its main
competitor, from 19.5 percent
to 43.1 ­percent. But the biggest
success in 2014 was that
Expressen celebrated its 70th
anniversary, and in conjunction
with that we started Expressen
7.0, an internal project with a
focus on data, ­social media and
IT ­development.
What’s Expressen’s biggest
success so far?
We’re in the midst of a tough
transition affecting the entire
media industry, but Expressen
has been profitable since 2003,
and with 2.1 million readers
­every day, we’re reaching
a record audience. We just
built a showroom at the news
desk, ­inspired by Apple’s and
­Samsung’s stores, and we’ll
continue to create an inspiring
digital environment.
Expressen, founded in 1944 in
an effort to counteract Nazi
­propaganda in Sweden, is one
of the country’s leading national
dailies, with regional editions
GT in Göteborg and Kvällsposten
in Malmö.
We’re ­documenting
the behavior of
new target groups
to ­guide digital
­product ­development.
We can then ­individualize
our ­offer, ­providing an
­optimal reading
experience for readers.”
Charlotte Svensson, Head of Digital ­Business
Development, business area News.
PHOTO: DAGENS NYHETER
88,820 Twitter
Followers
What’s the benefit for the paper
in launching these sites?
I should probably say that just
a few weeks after our viral
site Omtalat (which means
“talked about”) launched, it
was Sweden’s third-largest
mobile site. Or that Expressen
PHOTO: PETER JÖNSSON
3 QUESTIONS.
BONNIER ANNUAL REVIEW 2014 23
A STORY ABOUT CHANGE
Text Karin Strand Photos Peter Jönsson and Chris Gloag
The TV4
Group
•TV4 started broadcasting in 1990.
•The TV4 Group has some 500
­permanent employees, and including
project-based workers it employs
some 4,000 people per year.
•About 260,000 hours of TV are
broadcast each year on all of the TV4
Group’s platforms.
•Turnover in 2014 was SEK 4.2 billion.
PHOTO: PETER JÖNSSON
24 BONNIER ANNUAL REVIEW 2014
Cecilia Beck-Friis, center, with a few of the
many folks working on digital issues at TV4,
from left, Samir Törnblad, Ulrika Dunder,
Per Närstad and Åsa Mällström.
Make
or
Break
Three different companies,
­different business ­areas.
But for ­Bonnier I­ nsights,
the TV4 Group and ­Bonnier
­Publishing, 2014 was a year
of ­significant change.
THE YEAR 2014 WAS WHEN things took off for Customer Insights & Development within Bonnier. It was
also when the old “platform” thinking made way for a
brave new challenging way of working with programs and
advertising within the TV4 Group. And in the U.K., after
four years of strategic positioning, Bonnier Publishing
was ready to significantly expand in the English-speaking
world.
Customer Insights & Development – Bonnier Insights
– was formed at the end of 2013 with the task of collecting, matching and refining cross-company customer
BONNIER ANNUAL REVIEW 2014 25
Customer
Insights
•Launched end of 2013.
•Central support function at Bonnier AB.
•Cross-company data collection online for
some 100 domains in the Nordic region.
•Handles nearly 7 million Nordic cus­tom­
ers in a common customer database.
PHOTO: PETER JÖNSSON
and behavior data, to give Bonnier’s different companies a
tool to analyze and react in real time to customer and reader
­behavior.
“This is something that’s developed in recent years and, for
example, can result in adapting a digital news page to readers’
behavior, interests and demographics,” says Jannike Tillå,
head of Customer ­Insights & Development. “By providing
readers with articles that match their interests, we hope that
the user experience will be more relevant.”
The primary target group for Bonnier Insights are the CRM
and marketing departments, ad sales departments, analysts
and business developers as well as editorial within Bonnier
companies.
Bonnier Insights also has overall responsibility for analysis for the Bonnier group. So far, the department has six
­employees, but plans are to grow during 2015.
“During 2014, we’ve worked primarily with starting things
26 BONNIER ANNUAL REVIEW 2014
up, rolling out common metrics and ensuring all the relevant
legal requirements are in place,” says Tillå.
Reactions from within Bonnier have been positive, but the
different maturity levels of the companies when it comes to
customer-driven work efforts is a challenge.
“On one end, we have purely digital companies that are
used to working in this fashion. At the other end, we have
companies who are beginners in this area and who need
more ­support,” says Tillå, adding that one challenge for her
personally has been communicating to all the companies the
complex service offering that Bonnier Insights can provide.
“My goal is to be able to help the companies that need it, but
more important is that the companies learn from one another,” says Tillå. “Harnessing the power of the collective data
is an incredible opportunity to give readers and ­customers
­relevant and adapted reading and web experiences. These
days, that’s what many readers expect.”
Jannike Tillå (at the head of the
­table) with her team: Zara Bohlin,
Mimi Öhlund, Jonas Edström, Cia
Bohlin and Thomas Forsgren.
“Harnessing the power
of the collective data is an
incredible opportunity.”
THE AMBITION OF MEETING VIEWERS, ­users and customers in a new way permeates the new organization that
the TV4 Group launched on Jan. 1, 2014. The change meant
that digital operations were integrated completely into the
­organization, which among other things meant that the separate unit Digital Media was closed down.
One year later, Cecilia Beck-Friis, Vice President with overall responsibility for the TV4 Group’s business and technology
development, looks back on a year of laying a solid foundation
for success in the new changing media landscape, one that has
already delivered concrete results.
“Interest in moving images is bigger than ever, but the way
they’re consumed has changed and continues to change, and
that’s what we’re facing now,” she says.
The concept of “platform neutral” is key. Instead of trying
to figure out how to add digital functions to a TV program
post-production, program concepts are developed with a
broad view, taking into account all the possibilities offered by
new distribution channels and consumer behavior.
This way of working gave clear results during the year for a
number of the TV4 Group’s biggest projects, like the summer’s
World Cup, which was a huge success on digital platforms,
as was campaign coverage in the fall of the Swedish national
elections, which was a catalyst for digital news consumption.
And Swedish Idol, celebrating its 10th year, reached the public
in new ways – the number of Idol streaming starts on TV4’s
platforms doubled compared with the previous year, to 30
million, and Idol’s Instagram account increased over 750
percent.
Furthermore, consumption of TV4’s digital content doubled
via a strategic cooperation with YouTube, and the network
continues the work of making its content available on its
on-demand service TV4 Play and in social media.
Meeting the demands of the new consumption patterns also
27
A STORY ABOUT CHANGE
requires an innovative way of development with technology.
During the year, TV4 Play was first out on Apple TV in the
Nordic region, and shortly before Christmas it came out on
Google’s equivalent, Chromecast.
“We need to continue to increase our pace of innovation and
make sure we attract the best developers and technicians,”
says Beck-Friis. “It’s an important success factor for us going
forward. We also are thinking outside the box when it comes
to products, services and business. In line with our new organ­
ization, all sales staff represent all of our platforms.”
The big challenge for the TV4 Group has been timing. It’s a
matter of always being apace of the market – not too far ahead
and certainly not left behind, says Beck-Friis.
“At the same time, one of the lessons we’ve learned is that
you need to allow time for change. We made several tough
decisions, and it worked out well. What’s important for
­success is that we constantly talk about why we make changes.
It needs to be clear for everyone how the overall objectives
become tangible in everyday life.”
AS WITH THE TV4 GROUP, change and timing were key
concepts for Richard Johnson when he took over as CEO for
Bonnier Publishing four years ago. At that time, the company
consisted of a group of smaller book publishers whose founders had sold their companies to Bonnier but found it difficult
to fit into a larger group. Johnson’s job was to transform the
company, turning red numbers into black and then expanding
the operations.
“It was simple in my mind – either change and at least
­double in size or Bonnier should sell the group. It was one or
the other,” says Johnson.
Johnson chose growth. The book publishers that are part
of the company have been revamped, and 80 percent of the
440 employees have started in the past two years. Profits have
gone from GBP -5 million in 2010 to +2.4 million in 2014.
And a big expansion is under way: the recent acquisition of
Igloo Books puts Bonnier Publishing in the top ranks of U.K.
children’s book publishers and will help significantly in the
goal of doubling sales from GBP 50 million a year to 100 million.
“The greatest challenge was knowing when the moment was
right to expand and to do it quickly,” says Johnson. “It has
been like one great chess game in the last four years, moving
the pieces ready to make the attack.”
During 2014, Bonnier Publishing not only acquired ­Igloo
books but launched Blink Publishing, which publishes
­primarily nonfiction for adults, as well as little bee books in
New York City. For 2015, Bonnier Publishing has plans to
start an imprint with literature for adults.
“These changes have transformed everything for us, as we
are now more relevant in the English-speaking publishing
world,” says Johnson. “This will make it easier to attract the
top staff and authors.”
He notes that the transformation has required both patience
and courage:
“You have to sell your vision to the employees, because
they're the ones who will make you succeed or not. You will
make some mistakes, and you will go one step forward and
two steps back sometimes, but if you believe in your overall
vision and have the right team with you, you will get there
in the end.”
“The greatest c
when the mo
­expand and to
PHOTO: CHRIS GLOAG
PHOTO: CHRIS GLOAG
28 BONNIER ANNUAL REVIEW 2014
hallenge was knowing
ment was right to
do it quickly.”
Richard Johnson and his
­management team – or
rather their a
­ vatars:
Sharon Parker, J
­ ohnson,
Perminder Mann and
Mark Scorey.
Bonnier Publishing
•Bonnier Publishing is the English-speaking business within Bonnier Books and in­cludes
Hot Key Books, Templar Publishing, Autumn Publishing Group, Igloo Books, Piccadilly
Press, Weldon Owen, The Five Mile Press in Australia, little bee books in the U.S. and
­Piccolia in France, as well as Blink Publishing, which publishes nonfiction for adults.
•Books from Bonnier Publishing are sold in three-fourths of the world’s countries.
•There are 440 employees in four countries: the U.K., Australia, France and the U.S.
•Sales amounted to GBP 51 million for 2014 and are budgeted at GBP 87 million for 2015.
BONNIER ANNUAL REVIEW 2014 29
FINANCIAL RESULTS 2014.
Bonnier 2014: Stable Foundation with a View to the Future.
­Bonnier AB’s operating profit for 2014 amounted to SEK 1.1 billion*,
­compared with SEK 1.17 billion the previous year, which resulted in
an EBITA margin of 4.7 percent (4.8). The group’s revenues were
SEK 23.7 billion (24.35), which is a change of -2.7 percent.
BONNIER AB’S CEO Tomas Franzén:
NET SALES BY
BUSINESS AREA.
6,000
(SEK M)
5,000
4,000
3,000
2,000
B
Bu
B
sin roa ook
s
d
es
s cas
to
tin
B
g
Gr usin
ow
es
th
s
M
M edi
ag
a
az
in
es
N
ew
s
Ot
he
r
1,000
EBITA BY
BUSINESS AREA.
500
(SEK M)
400
300
200
News
Ot
he
r
Magazines
B
Bu
B
sin roa ook
s
d
es
s cas
to
tin
Bu
g
sin
Gr
ow
es
th
s
M
ed
ia
100
30 BONNIER ANNUAL REVIEW 2014
“The year’s financial results were in
line with our expectations. Even market
developments during the year were, for
the most part, as expected. Print ad sales
continued to decline, and changes in
TV viewing were apparent in the spring.
Given the circumstances, it’s gratifying
to see on one side how Swedish TV4
continues to perform strongly, and on
another how our business areas with
significant print advertising – News,
Magazines and Business to Business –
have shown improved profitability.
“While we have proven ourselves to be
financially stable in a turbulent market,
we are facing big challenges. In markets
where traditional revenue streams are
under pressure, we need to increase our
revenues from new, primarily digital,
sources. And we need to do it at a faster
pace than we have done so far.
“In September 2014, Bonnier adopted a strategy to drive this shift towards
digital growth. Our ambition is to drive
the change process via comprehensive
investments in technology and business development within our current
businesses, and with greater collaboration at, above all, the business area
level. ­Acquisitions and divestments can
of course be of interest as a complement
to drive change, but the development of
our core business is the main focus of
our work to turn Bonnier into a leading
digital media company.
“So it is with great pleasure that we
have seen signs of a trend reversal for
the business area News. The increase in
digital advertising is now large enough
to balance the decrease in print advertising. If this proves to be permanent, it
is even more significant than this year’s
improved profitability for the News
business area.
“Bonnier has a stable financial position today and owners who take an
exceptionally long view, which gives
us invaluable room to maneuver. Our
focus lies not in maximizing Bonnier’s
profits during this year or the next, but
in strengthening our long-term com-
petitiveness. During 2015, our ambition
is that the strategy adopted in 2014
will have an impact in the form of new
products and services, and not least,
accelerating the shift to digital revenues
that can continue to pay off for Bonnier
far into the future.”
BOOKS’ EBITA IMPROVED, amounting
to SEK 437 million (402), an increase
that above all was driven by strong
growth in the German operations.
The Finnish publishers succeeded in
increasing revenues in a tough market
and made a profit. Bonnier Publishing in
the U.K. acquired Igloo Books in the fall,
becoming the country’s third-largest
children’s book publisher.
BROADCASTING’S EBITA ­amounted
to SEK 589 million (770). Swedish TV4
had yet another strong year, and both
digital and nationwide advertising
sales reached an all-time high, despite
a decrease in linear TV viewing. Large
investments in the continued digital
transformation – in content, technology
and business development – contributed to results not being on a par with
the previous year’s record-breaking
results. In Finland, MTV showed clear
improvement under very difficult
macroeconomic conditions. ­Production
company Nyhetsbolaget also had a
greatly improved result and has reached
cost-savings targets set at the formation
of the company.
BUSINESS TO BUSINESS, with
­ perations in the Nordic region as
o
well as in Eastern and Central Europe,
continued to develop strongly, improving its ­EBITA markedly, to SEK 132
million (88). The Norwegian health-­
related businesses Dagens Medisin and
Norsk Helseinformatikk showed both
organic growth and very strong profit­
ability. Denmark’s leading business
daily, ­Børsen, reached record profits. In
Eastern Europe, St. Petersburg’s leading
news site, Fontanka.ru, succeeded in
­increasing its digital ad sales by nearly
50 percent despite a tough macro­
economic climate and political unrest.
GROWTH MEDIA’S EBITA amounted to
SEK -189 million (-47). The decrease is
primarily due to structural declines in
Svensk Filmindustri’s (SF) DVD business, as well as changes in accounting
principles for acquiring film rights. At
the same time, SF’s production and
digital distribution are growing. During
2014, SF signed a mutual distribution
and production contract with French
company StudioCanal, which will be
significant for SF in upcoming years.
Bonnier Growth Media focuses on
digital companies with global growth
­ambitions, and among the companies in
its portfolio, Toca Boca has ­distinguished
itself with 37 percent growth and
continued strong profitability. Among
other wholly or partially owned growth
companies within the business area are
Spoon, Evoke Gaming, Refunder, United
Screens, FLX and KIT.
MAGAZINES’ EBITA was SEK 310 million (306). American company Bonnier
Corporation improved profits through a
combination of cost-savings and increases in digital and event-related revenues,
while the Nordic operations’ results were
slightly lower than last year’s.
NEWS’ FOUR SWEDISH newspaper
NET SALES BY BUSINESS AREA
[SEK M]
2014
2013
Books
Broadcasting
Business to Business
Growth Media
Magazines
News
Other
6,472
6,448
1,142
1,962
3,944
4,705
–971
6,254
6,388
1,111
2,054
4,342
4,583
–378
218
60
31
–92
–398
122
–593
3.5 %
0.9 %
2.8 %
–4.5 %
–9.2 %
2.7 %
n/a
23,702
24,354
–652
–2.7 %
EBITA BY BUSINESS AREA
[SEK M]
2014
2013
Books
Broadcasting
Business to Business
Growth Media
Magazines
News
Other
437
589
132
–189
310
332
-508
402
770
88
–47
306
241
–588
35
–181
44
–142
4
91
80
8.7 %
–23.5 %
50.0 %
neg.
1.3 %
37.8%
n/a
Bonnier AB total
1,103
1,172
–69
–5.9 %
EBITA MARGIN BY BUSINESS AREA
[SEK M]
2014
2013
6.7 %
9.1 %
11.5 %
–9.6 %
7.8 %
7.1 %
n/a
6.4 %
12.1 %
7.9 %
–2.3 %
7.0 %
5.3 %
n/a
0.3 % –3.0 %
3.6 %
–7.3 %
0.8 %
1.8 %
n/a
4.7 %
–24.8 %
45.6 %
neg.
11.4 %
34.0%
n/a
Bonnier AB total
4.7 %
4.8 %
–0.1 %
–2.1 %
EARNINGS
[SEK M]
2014
2013
23,702
1,103
892
–365
527
310
24,354
1,172
2,888
–297
2,591
2,204
2014
2013
Tangible & intangible fixed assets (excl. Goodwill)
Working Capital
Taxes
Other financial assets
Goodwill
3,043
-1,400
2,154
389
7,816
3,478
-414
1,282
1,821
7,387
Operating capital
12,002
13,554
6,607
5,395
6,526
7,028
12,002
13,554
Bonnier AB total
Books
Broadcasting
Business to Business
Growth Media
Magazines
News
Other
companies had a very strong 2014, and
the business area’s profits rose to SEK
332 million (241). News daily Dagens
Nyheter improved on least year’s results
and reached an all-time high in revenues
from readers. Business daily Dagens
industri as well as news daily Expressen
reversed a trend, raising their total
advertising revenues through increased
digital ad sales that more than offset
losses in print advertising. Southern
Swedish news daily Sydsvenskan
acquired local paper Helsingborgs
­Dagblad, and the companies merged
into the newly formed HD-Sydsvenskan.
Sum Net sales
EBITA
EBIT
Net financial items
Earnings before tax
Loss/Profit for the year
OTHER CONSISTS OF common group
activities and functions. For 2014, EBITA
was affected in 2014 by SEK -508 million
(-588).
Gearing Ratio (net debt in relation to
shareholders’ equity) was 0.82 (0.93).
The group’s available liquidity, in the
form of liquid assets and undrawn credit
reserves, continues to be good and as
of Dec. 31, 2014 amounted to SEK 6.9
­billion, after Bonnier signed new fiveyear bank contracts in 2014.
Net Debt
Shareholder's equity and minority interest
OPERATING CAPITAL
[SEK M]
Financing of operating capital
in %
in %
in %
in %
–652
–69
−1,996
–68
−2,064
–1,894
–2.7 %
–5.9 %
–69.1 %
neg.
–79.7 %
–85.9 %
*STARTING ON JAN. 1, 2014, BONNIER IMPLEMENTED ACCOUNTING IN ACCORDANCE WITH IFRS.
THIS HAS HAD AN EFFECT ON THE INCOME STATEMENT AND BALANCE SHEET. COMPARABLE
­N UMBERS RESTATED IN ACCORDANCE WITH IFRS.
BONNIER ANNUAL REVIEW 2014 31
BOARD. The Bonnier Board of Directors.
Carl-Johan Bonnier
Jeanette Bonnier
Pontus Bonnier
Chairman of the Board.
Member of the Board.
Vice Chairman of the Board.
Bengt Braun
Christian Caspar
Maria Curman
Vice Chairman of the Board.
Member of the Board.
Member of the Board.
Arne Karlsson
Claes Hallin
Stina Lundgren
Member of the Board.
Member of the Board.
Employee Representative.
Member of the Board.
Employee Representative.
Sara Stenman
Member of the Board.
Employee Representative.
32 BONNIER ANNUAL REVIEW 2014
GROUP. Bonnier Executive Management.
Tomas Franzén
Anki Ahrnell
Casten Almqvist
CEO.
Chief Digital Officer.
Head of Business Area,
Broadcasting.
Michael Cordsen
Jacob Dalborg
Anders Eriksson
Head of Business Area,
­Magazines.
Head of Business Area,
Books.
Head of Business Area,
­Business to Business.
Gunilla Herlitz
Niklas Hydén
Fredrik Linton
Head of Business Area,
News.
Head of Group Program ­Management
and Chief ­Procurement Officer.
Head of Corporate
­Development and M&A.
Ulrika Saxon
Göran Öhrn
Head of Business Area,
Growth Media.
CFO.
BONNIER ANNUAL REVIEW 2014 33
The Importance of a Free Press
Recent attacks in Paris and Copenhagen emphasize the need to
­uphold ­freedom of speech and the press, which we believe are
the foundation to a sound ­democracy. Chairman of the Board ­­
Carl-Johan Bonnier responds to the threats and reiterates
his ­support together with a wide range of our leading editors.
The strong reactions from all parts of
society show, along with sorrow over the
loss of life, that there is awareness that
important fundamental values were under
attack. Let us hope that the broad front
supporting freedom of speech that we are
seeing continues even once the shock has
subsided.
As media owners, Bonnier has long
been guided by the principle that every
­editorship has the full support of the
­owners to its independent exercise of
freedom of press and speech. As owners,
we do not take a position on individual
­publication choices – but we do take a
consistent position on journalists’ unconditional right to sovereignty over their own
decisions.”
Carl-Johan Bonnier
Chairman of the Board, Bonnier AB
At TV4, we chose almost immediately
after the attack to publish the last cartoon
from Charlie Hebdo and then several more
to show the breadth of the magazine’s satire. The news circumstances were extra­
ordinary, we felt it was relevant to show
the drawings that the artists probably paid
for with their lives. Since then, we’ve been
more restrictive. Different news desks have
made different decisions. That’s one sign of
an open society.”
Viveka Hansson
Program Director for News and
Current Affairs, TV4
As editor-in-chief, I’m horrified by the
fact that journalists were killed doing
their jobs. A healthy society needs an
investigative power, a thorn in the side of
all kinds of powers-that-be. … People who
have ­influence over the lives of others, regardless of whatever office they hold, must
tolerate this even when, as in the case
of Charlie Hebdo, it means slightly more
demanding satire.”
FROM A COLUMN PUBLISHED PREVIOUSLY IN
SYDSVENSKAN.
Pia Rehnquist
Editor-in-Chief and Deputy Publisher,
Sydsvenskan
34 BONNIER ANNUAL REVIEW 2014
It can happen again. There’s no reason
to be naive. We’re not spectators in this
world, we’re participants. Our democracy
and freedom has been a successful frame­
work for the development of our society.
So we should stand by our values. We need
to come to an agreement with the powers
that threaten our freedom, and we need to
do it in a smart way.”
It is now even more important to speak
about the freedom of the press than we
maybe have done before. The shocking
tragedy in Paris – in the middle of old
Europe - and terror attack at Charlie Hebdo
magazine can’t stop the press and media
from speaking, filming and printing what
they want to.”
FROM A COLUMN PUBLISHED PREVIOUSLY IN
BØRSEN.
Head of News and Current Affairs,
MTV
Anders Krab-Johansen
Editor-in-Chief and CEO, Børsen
It’s incredibly tragic that human lives are
lost on account of a few unfeeling fanatics.
Clearly to some, the pen is more dangerous than a weapon. We need to do more
to prevent fanaticism from taking root.
Freedom of expression must be protected.
Likewise, our secular society.”
Lars Johansson
Editor-in-Chief, Helsingborgs Dagblad
Caution is sneaking in. It’s a slow-acting
poison – self-censorship – that eventually
is the most dangerous effect of attacks
such as that against Charlie Hebdo …
Salman Rushdie once asked rhetorically
what free speech is, and answered himself:
Without the freedom to offend, it ceases to
exist.”
FROM AN ARTICLE PUBLISHED PREVIOUSLY IN
EXPRESSEN.
Karin Olsson
Culture Editor, Expressen
I think it’s important to uphold freedom
of expression in different ways. For our
part at Albert Bonniers Förlag, it’s about
supporting art that problematizes our
time, and upholding the right of a work
of art to portray its time, without it being
reduced to a mere weapon. A culture that
meets simplification with the complex and
complexity.”
Daniel Sandström
Editorial Director and Publisher,
Albert Bonniers Förlag
Merja Ylä-Anttila
That large parts of Europe have stood
up for openness after the massacre in
Paris gives hope. It wasn’t support for all
of Charlie Hebdo’s campaigns, but for the
idea that all citizens – without fear of threat
– should be able to express themselves.
The frame of democracy must be so wide
that it can contain that which is provocative,
offensive and challenging. A society that
tries to censure the objectionable quickly
becomes unbearable.”
FROM AN ARTICLE PUBLISHED PREVIOUSLY IN
DAGENS NYHETER.
Peter Wolodarski
Editor-in-Chief, Dagens Nyheter
The historically successful fight against
violent extremism from both the left and
right shows that the soft and hard parts of
our society should be used. The rule of law
needs tools that work, but our entire culture needs to mobilize against extremism in
the same way we mobilize against Nazism,
for example. Public and open debate are an
important asset in this fight.”
FROM AN EDITORIAL PREVIOUSLY PUBLISHED IN
DAGENS INDUSTRI.
P.M. Nilsson
Politics Editor, Dagens industri
Freedom of the press is one of the
cornerstones of a free and open society.
Without the unfettered ability to shed light
in dark corners, to poke fun, to be deadly
serious, to entertain and inspire, we lose
something elemental: We lose sight of
ourselves.”
Cliff Ransom
Editor-in-Chief, Popular Science
The Bonnier Annual Review 2014
Editor and Project Manager
Bert Menninga
Photo Editor and Assistant Project Manager
Elin Eriksson
Director of Communications
David Salsbäck
Production
Spoon
Assistant Editor
Helena Distner
Art Direction and Layout
David Eide, Karin Nordkvist
Prepress
Markus Dahlstedt, Christer Jansson
Contributing writers, photographers and
illustrators
Evelina Carborn, Chris Gloag, Nadezhda
­Ishkinyaeva, Johan Jarnestad, Peter Jönsson,
Magnus Laupa, Anna Simonsson,
Karin Strand and Jon Whittle
Translation
Translation Scandinavia
Printer
Trydells
Bonnier AB
113 90 Stockholm
Sweden
tel. +46 8 736 40 00
[email protected]
www.bonnier.com
www.bonnier.com