"I think this is not the bottom"
You've already talked about why parted with editor in chief of Elle. And was not there was an attempt to blame the decline of advertising time on the wording of the crisis?
- Absolutely not! As in the State of the Church is separated from him, and we - Department of advertising and distribution. Revision doing their business, the advertising department - his, and distribution - a. Revision is not responsible for advertising sales. And we even had a horrible dream, do not make any claim to creative team. On the contrary, one of our main tenets is that the wording is only one god - the reader.
- And it is the beginning of the crisis went away?
- The reader is behaving in accordance with the crisis. Some of the buying has become less frequent, but the most pessimistic forecasts were not justified. Earlier this year the market became very active to say that, above all, must suffer glossy press ...
- No, said: "At long last, those soap bubbles burst?
- Yes, or even harder. But in reality this is not happening. Moreover, Elle, in March sold the same number as in 2008-m. Sales of March, traditionally the most important room in year (rush, opening the season) - are the same as in the past, as in the pre-crisis 2008-m.
- By the numbers are how many?
- A lot. Hundreds of thousands.
- Well, what exactly? This is not a secret!
- Why not a secret? The secret. We do not talk, do not reveal. Such a rule in the market - not to mention the circulation. Yes, there are some publications that are part of the "National run the service, they reveal circulation figures. In our ID, for example, "Antenna-Telesem" which is printed exactly those circulation as indicated - 3 million 980 thousand
- A refund of what?
- Approximately 10%.
- And you want to say that the advertiser is also trusted to HMRC?
- For the advertiser can not answer. And here we are circulation share, NTS audiruet and record our roster. We realize, of course, that there are nuances. They do not have the resources to do a very thorough audit - such as would have to be done. Yet, even the fact that publishers offer runs for the audience, forcing them to speak the truth. Or to be closer to the truth.
- So for the rest, neaudiruemym editions, you can forgive, to lie?
- And the rest, there is unspoken rule, to which I said. Circulations are shown in the output. And each of the magazines - a level of write-offs. A glossy press, as is known, the level of great. Since this is primarily a business built on advertising revenue ...
- Okay, let's ask it. Interest write-offs from circulation magazine Elle in March what?
- Now, in times of crisis, is increasing. And in March he was at the level of last year, even a little lower. We began to slowly reduce the circulation of Elle - because of the apparent reduction in consumption. And in March this year, we printed fewer than last year. A sold about the same. Thus, we write the level was lower.
PRESS underestimated
- Chapter ID "Seven Days" in an interview with Dmitry Biryukov Slon.ru said that categorically do not agree with estimates ACAR - by the numbers falling advertising revenue. Do you agree with the ACAR?
- I do not agree. We met yesterday with Alexander Antonov heads the Moscow Union of Printing. " His company is engaged in distribution and servicing of the huge number of outlets. He said that the crisis had clearly demonstrated the effectiveness of the distribution: a poorly organized everything is falling, while working well - no. A small players (such as such as the "Cardoso", according to Alexander Antonov) were very high results in spring, but February was their best month in history. If you look at the global distribution of the press, the disastrous collapse there. There is a moderate drop in - 15 - 20%, somewhere - about 30%.
Our Antenna, Telesem "increasing sales, revenues from sales. And even if there is a drop in advertising at 25%, the growth in income from the sale of copies - about 12%. In some cities the circulation declines, according to the individual - is growing, but on average we see a slight increase in copies, and the money growth - is substantial. The point is that during the crisis the price has risen. Or the publisher raised the price, or it has risen by an increasing margin distributors (from January 1, introduced a single tax on imputed income, which was not before). And it podtyanulo retail prices up. And in other publications, where we and other publishers have raised prices, the income is no longer available. And this is all said that the market is in a position where there is no catastrophe. Yes, I would say, the fall sales, which corresponds to the level of lower demand, lower purchasing power. The press has a publication that fall more, there are those that fall below. But in the press, there are publications that have continued to grow.
- And how it all relates to the fact that you do not trust to WI?
- Explaining all this, I mean that the picture on the market - a more colorful. There is, and gray, and dark and light, and even bright colors.
- The horror, but horror-horror?
- Do not see the horror! On the market there is a crisis, but the horror was in the 98 th when grohnulis banks. Now we see the potential bankruptcy, and we have time to navigate. The situation in the press today, in my opinion, is comparable with what is happening on TV. Despite the fact that according to some estimates, the decline of television is 20%, advertisers, analysts and other players say - 40 - 47% of sales!
- Why such different numbers?
- Because lobbyism.
- And publishers are willing to fight it?
- The publishers of this show. You hear me? I hope that my words even appear.
- But this is probably still not enough to deal with television lobbying? Publishers are aware of?
- A lot of years. Many years in the market, we have a situation where the TV market is overvalued, overvalued and the market underestimated the press.
- And who overestimates?
- We do not telerynka estimates. Those involved in TNS AdFact, Analytical Center WI.
We are using estimates of TNS, seeing as it is not the same. TNS provides some figures, but expert estimates ACAR we see others. And it is very different. It's not our area, but we ask the question: why such a disparity?
But we know more - Russia press underestimated. We do not even have such a tool, like a TV - People-meters, more accurate for measuring the audience. Measure TV is much easier than the press.
In addition, the TV - a more concentrated media. The bulk of the advertising - on national channels, and it is easy to calculate. A press heavily fragmented. If the magazines are mostly - national, the newspaper, free advertising publications, mostly - regional. And every small town has several publications. And in every small town was not involved in the measurements.
LESS 25%
- And if you talk about your publishing house, a drop occurred? In the advertising revenue?
- In general, about 25% - in rubles.
- This is the bottom of the crisis? Or will the second wave?
- I think that is not the bottom.
- What makes ID?
- We finished last year with sales (total revenue) of about 200 million euros. This is the second volume of sales in our publishing group Lagardere Active - after an American company. A net profit, we were the first in our group. The indicator, called EBITDA, was more than 25 million
And in comparison with Russian publishers to disclose information, the indicators of Sanoma, for example - below. They - a conglomerate of companies: there is a partnership with Hearst, are - without Hearst, c Wall Street Journal and the FT ... But in the end figures that being consolidated into one company, were lower than ours. I can not judge the volume of sales Burda, they are - a private company does not disclose information. And all the other Russian publishing house - smaller.
- Are you about the IPO, by the way, never?
- No, it's not our direction. The group Lagardere - a public company, and it is not logical - be it a "daughter" - a public company.
Why closed?
- I talked to one of the leaders of your ID, which said that you made a decision - not to close any publication.
- While we do not see the point in closing. Why, if it is profitable, is close to zero or developed? Each of the publications we are able to conduct some exercises.
- Due to what is happening - at a time when others are closed?
- This portfolio. As we close Elle, if this publication, which sells the most advertising in the country - in the bands? Also Independent Media does not think the closure of Cosmopolitan. No we have such publications, to whom the question of closure.
- Are you satisfied?
- No, we mean the temperature of the crisis. Alarmingly.
Total CHALLENGE
- You are not pleased with the closing of the competition?
- Not at all. I always try to soberly assess and understand why this is happening, what conclusions can be made. On the market - are emblematic and very sad for me closure. For me very sad closure of the magazine Gloria. Independent Media had a very good job, tried to create a new concept of its magazine, designed for a new niche - women's weekly mass for the woman who cares about himself and his environment and family. The magazine did not go. It seems that middle class women in Russia who have to live their home, such as another look at the magazine than in Finland, the States or Germany. They did a good magazine of international standard, but to the Russian market is not well adapted.
Another sad conclusion of the story - that seems to have a small number of women willing to consume a weekly magazine. I represent the American woman who buys a subscription to more than one weekly. And we do not even know what kind of account - each thirtieth or fiftieth each buys weekly.
For me is very symbolic and sad is the closure of the magazine Viva (ID EdiPress), the journal of the stars. The same thing - there is no interest in the stars. It remains for us in Russia is not the stars, not well developed show business.
Very sad closure of the magazine Smart Money, which was established as a business-weekly new model - for the young, energetic person who wants to cover everything. And, as I thought the magazine was designed for medium-sized businesses. A medium-sized businesses, has been, or is not reading, or reading those magazines, which already have - they are no longer needed. Sadly.
- And to what publications on the market still is the threat of closure?
- The threat - the total. If we take each of the niche, then based on the number of players in it, or every fourth or every fifth or lower edition - under threat. Take a niche men's magazines. Number one - Maxim, and then go Men's Health, GQ, Playboy and Esquire. The other is the threat of closure. Everything depends on the ambitions of the investor.
LAWS OF BUSINESS
- Generally there is a point of view, that the publishers we are looking forward to the advertiser, not to the reader. Not in this problem?
- It lzhepravda. In the Russian market there are several groups of publishers. There are those for whom it is - the main business and who live under the laws of publishing.
- One of them - in front of me?
- Maybe (smiles). For them, the main thing - the reader. The objective of such a publisher - to make an interesting product and sell it at a certain price of a certain number of copies. Then all srastetsya - you will be advertisers who are interested in your target group. And there is an extreme wing, which is little interested in the publishing business, as such: he and a couple of comrades emerge advertisement ... It passes very quickly. Man to play once and quit.
Malakhov - it has come to stay
- Returning to the stars. You are at the same time c Viva (chief editor - Inna Churikova - Slon.ru) ran his StarHit (chief editor - Andrei Malakhov).
- They went a little earlier.
- Guest star - a strategy justified? Obviously, this ad at the beginning of the course, and what then?
- To us - is absolutely justified. Journal StarHit - the publication of Andrei Malakhov.
- He was seriously engaged in the magazine?
- Yes, as it can for you and strange sounds. Each week during certain hours, he - in the ID. Andrew with us a long time, it is - a long-term project. Yes, this magazine has a special design - namely because Malakhova. Drafting management there is arranged a bit differently than in other magazines, but Andrew is the role of editor.
- Journals of the stars - it is a strange niche. All of them are trying to do, but you yourself acknowledge, no stars. No irony there?
- This is not a paradox. The most popular magazines in Russia, who use the stars as newsmakers, go to the television - it is "Seven Days" and "Antenna-Telesem. The program in Russia is more important component than the information about the stars.
A group of magazines that go without a television, and went our StarHit. We started with the publication of the program, but realized that the market does not need to publication, which covers only the most important television event. Market needs a complete detailed program, or no. This niche is now four or five magazines. There have StarHit one of the largest audiences, and we received it very quickly.
