Change of power in Poland is reflected in the results of “Gazeta Wyborcza”. While the decline in copy sales by 6.8 percent. This result more consistent with market trends, whereas 21.5 percent. decline in advertising sales in the newspaper is certainly the result of “good changes”.
With 22.3 million to 17.5 million zł – have fallen by as much revenue from advertisements placed in the “Gazeta Wyborcza” in Q1 2016. compared to the same period a year earlier. Although the financial statements of Agora is not a word about the fact that this result may have a direct relationship with the change of the leadership team in the country, certainly this is so – “Gazeta Wyborcza” has lost most of the revenue from advertising and announcements, which until now offices state willingly invested there.
As a result, segment Press, who so far has been the flagship business of the whole group Agora, it is today the only next of Printing, unprofitable business – the costs could not yet cut with declining revenues from advertising. the press also lost the title of the largest segment – today Agora more money is collected from cinema operations and publishing books rather than from the sale of newspapers and magazines and ads placed in them. Oh, the sign of the times – Agora is now more than Helios cinema “Gazeta Wyborcza”.
The Agora count of consecutive declines Press in the segment in the coming quarters. The remedy for this is to be the growing influence of paid digital access to the content of “Gazeta Wyborcza” on the Internet (so-called. Paywall). As we read in the commentary to the latest results:
At the beginning of 2014. Agora has implemented a new model of access to digital content Gazeta Wyborcza and offer digital subscriptions. At the end of 2015. Number of paid digital subscriptions of Gazeta Wyborcza amounted to over 77 thousand. The ambition of the Company is to increase the base of paid digital subscriptions to 90 thousand. at the end of 2016. The Company believes these measures in the long term, along with other factors, will affect the stabilization of the financial results of the Newspapers segment.
If it succeeded, Agora could offset the losses associated with the lack of advertising orders from institutions government. For now – what you need to clear – sales execution paywall goes pretty well.
On the other hand, the Internet is still not overly important segment in the overall revenue structure of Agora – this is only the fourth largest source of revenue (12.6 per cent.) on the Clip / book, the Press and printing (Agora has its own printing, which sells printing services), although it is worth noting that a rise of 14.2 percent. to 36.3 million zł was the highest in the whole group.
What about this, however, since in the segment of Internet costs grow fastest in the whole group – in the last quarter by 19.8 per cent., which exceeds the revenue growth . Agora explains the effect of the consolidation of GoldenLine and higher costs of intermediation in the sale of advertising on the surfaces of other web publishers.
Overall, in the first quarter of 2016. Agora Group’s revenues amounted to 288.5 mln zł and were higher by 2.0 percent. compared to the first quarter of 2015. However, we failed to defend profitability – EBITDA Press totaled -0.4 million zł, and here again we return to the high decline in advertising revenues in the “Gazeta Wyborcza”.
” good change “is therefore really a bad influence on the result of the Group Agora.
* main image: Wikipedia (Szczebrzeszyn)
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