Biggest European media losers of 2017
The media business game is undoubtedly getting harder; whereas some companies are winning, others are getting it very wrong - and heading in the wrong direction. Here’s a round-up of the worst performing media companies in Europe, based on analysis of their financial results from the past year.
Top 5 worst performers
- Ringier: -11.5%, €920 million
- Sanoma Group: -7%, €1.64 billion
- Tamedia: -5.5%, €1 billion
- RCS Media Group: -3%, €970 million
- Bonnier AB: -1.5%, €2.67 billion
Sanoma, Tamedia and RCS Media are once again in the top 5 worst performing media companies in Europe - showing little improvement over last year’s relatively high negative growth. An examination of their financials shows that the biggest issue for media companies still remains the drop in traditional revenue streams, with digital revenues and cost-cutting still not making up the difference.
Zero growth - going nowhere
Almost half (12 out of 25) of the biggest European companies showed zero or less growth for the year. Some of the biggest and most diversified businesses, for example Bertelsmann with -0.5% growth, have shown that even the biggest and most diversified of media businesses aren't safe from the shifting media tides. Picking out Axel Springer, who last year were one of the highest growth companies in Europe, were hit on two fronts, with their usually robust subscription business down 6.8% and advertising business down 2.8% - with digital now making up 67.4% (up from 61.7%) of advertising revenues.
- Egmont: -1%, €1.56 billion
- Bertlesmann: - 0.5%, €16.95 billion
- Axel Springer: -0.1%, €3.79 billion
- Daily Mail (DMGT): 0%, €2.1 billion
- TF1: 0%, €2.06 billion
- Grupo Prisa: 0%, €1.36 billion
The 'turn-around' guys
It’s not all bad news for these companies, as many have improved their growth profile since last year. The two standout ‘turn-around’ companies being Grupo Prisa, who increased their growth from -6% last year to 0% this year, and Daily Mail (DMGT) who went from -2% last year to 0% this year.
Beyond these incremental improvements there are also a couple of standout turn-around companies who’ve gone from zero to hero; Germany’s Hubert Burda who turned around a -10% decline last year to 1% growth this year and Italy’s Mondadori from -4% to +12.4% growth this year.
For full financial results for the top 25 European media companies, read our review from earlier in the year here >>
Image courtesy of Alan O'Rourke