Reading habits change and advertising money gets spent elsewhere – there’s nothing new about this for magazines. But in 2017 we saw the rate of change accelerate. And it posed challenges at an even faster pace for our existing businesses.
At the same time, our new growth areas showed great potential, and the plan is to increase our speed forward to match the big shift.
The rapid change is most apparent in the U.S. market, where print revenue for magazines dropped by almost 20 percent in 2017. While Google and Facebook are growing, everyone else has to struggle, both in print and digital. As a result, we saw consolidation during the year with several major acquisitions and mergers.
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Bonnier Magazines & Brands’ Sweden Fashion & Beauty Day was a hit with over 2,000 participants and some 22 advertisers.
Even in the Nordic countries, the rate of change is increasing, but both of our companies there, Bonnier Publications with headquarters in Copenhagen and Bonnier Magazines & Brands with headquarters in Stockholm, have strong reader revenues and have been able to keep up well: 2017 saw net sales of SEK 2.23 billion as budgeted and was at about the same level as 2016.
We also tested new products and formats, such as a focus on a higher price and more exclusive special issues (bookazines), where we managed to create new revenue in an otherwise pressed market for single-issue newsstand sales.
It is also a very positive sign that more complex concepts, such as native advertising, have gained traction: We really know our target groups and can handle everything from idea and design to production and delivery. Other positive areas are the increase in agency activity at Benjamin Creative in Denmark and the growth of services such as travel and education.
In the U.S. at Bonnier Corporation, we signed a long-term cooperation agreement with Li & Fung, world leader in manufacturing different types of goods, and an important partner in the plan to grow our strong brands through licensing.
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Events also grew strongly in the United States where, for example, the Sand Sports Super Show (acquired in 2016) broke previous records with over 25,000 visitors and a contribution over USD 1 million, a more than 75 percent increase over 2016.
In the food segment, Saveur held its eight annual Blog Awards in Charleston, South Carolina, honoring outstanding food and travel content from around the world. In 2017, over 30,000 nominations were made in 12 categories.
In Sweden, we strengthened the influencer business and with the acquisition of the Tailsweep network and ENT, we are now clearly the market leader. In the fall, we also witnessed the birth of a new event in the fashion area: Sweden Fashion & Beauty Day, a joint venture from all four fashion and beauty brands.
Fitness title Active Training was re-launched for the entire Nordic market. Going from an entirely male audience, it is now a unisex magazine, and circulation is up 10 percent.
The first more extensive trials of consumer-paid digital products showed the way to the future. The Nordic all-you-can-read magazine app WYPE has evolved positively during the year, and several new digital services have been developed.
Costume was the first fashion magazine in Norway with a model on the cover wearing a hijab, with actress Iman Meskini from the Norwegian television series Skam. The cover gained a lot of media attention and had a global impact as a consequence.
During the year, the Swedish company changed names from Bonnier Tidskrifter to Bonnier Magazines & Brands to better reflect what the business is about. During the summer, the company also moved back to its roots, to the Bonnier Building on Torsgatan in Stockholm. From seven floors and an infinite number of nooks and crannies, now all 350 people are in the same room, which facilitates both communication and production and shows the way to the future.
Lars Dahmén, Business Area Head
| SEK M | 2017 | 2016 | 2015 |
|---|---|---|---|
| Net Sales | 3,441 | 3,782 | 4,045 |
| EBITA | 167* | 267 | 250 |
*EBITA was negatively affected by restructuring costs of SEK 55 million for Bonnier Corporation and Bonnier Magazines & Brands.
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