Semi-annual report 2000
The operating profit of N.V. Holdingmaatschappij De Telegraaf for the period from 1 January to 16 July 2000 rose from NLG 115.3 million to NLG 118.4 million, including the start-up loss on Sp!ts and the net profit of Uitgeversmaatschappij De Limburger B.V., which was not consolidated until 22 May 2000, once the NMa (Netherlands Competition Authority) had approved the takeover. The figure also takes account of the writing down of goodwill over a period of twenty years.
- a 10.8% rise in turnover to NLG 950.3 million; autonomous turnover (excluding Sp!ts and De Limburger) rose 6.6%. De Telegraaf’s advertising volume rose 3% during the period as a result of distinct growth in national brands and services (a sector susceptible to economic cycles) offset by a slight drop in both local brands and services and job and classified adverti-sements. The aggregate advertising volume of the national newspapers showed a 4% increase. The circulation of De Telegraaf declined marginally, mainly owing to fewer single-copy sales.
- the increase in the number of staff. Measured in FTEs, the workforce grew from 4,707 in July 1999 to 5,398 in July 2000, including 562 staff of De Limburger. At year-end 1999, the figure stood at 4,756. Apart from the consolidation of De Limburger, the increase in the workforce was attributable mainly to staff growth in the information and communication technology sector as a result of developments in the area of electronic publishing.
- the increase in other operating costs. Excluding Sp!ts and De Limburger, this item rose 14.3%, partly as a result of higher delivery costs, additional costs of Internet projects, including the launching of dft.nl (De Financiële Telegraaf on-line), costs of consultancy in connection with the NMa proceedings regarding De Limburger, the setting-up of Logistiek B.V., and the start-up costs of new magazines of De Telegraaf Tijdschriften Groep B.V.
- the inability to achieve synergy in the Limburg region yet, since NMa approval of the takeover of De Limburger was not granted until May 2000.
- start-up losses on participating interests in various Internet projects, including Jumptech, Matchcare and Woonkrant.nl, which have been allocated to the first half-year from the com-mencement date of the shareholding pro rata on the basis of the proportion of approved budgets for 2000.
- a higher cash dividend for 1999 from Wegener N.V.;
- a profit from SBS Broadcasting B.V. in the first half of 2000, as against a loss for 1999 on account of the start-up costs of the TV station Net 5, which was launched on 1 March 1999.
- advertising volume, which, given the sustained economic growth, is expected to be approxi-mately the same as in 1999;
- the start-up loss on the free afternoon newspaper News.nL in a print run of over 100,000 copies, which is to be introduced on 28 August 2000 and distributed at the railway stations of the four major cities;
- the start-up loss on the men’s magazine FHM (For Him Magazine), which is to be introduced by De Telegraaf Tijdschriften Groep B.V. on 21 September 2000;
- a substantially lower loss from Sp!ts.
- the development of regional portals, a joint venture involving De Telegraaf, Noordelijke Dagblad Combinatie Holding B.V. and the regional dailies in the Telegraaf group;
- the joint venture with Airtrade Holland in the travel business, which is to begin in the second half of 2000;
- the introduction of the ‘scan-pen’ as a direct link between up-to-date information in print and additional information on the Internet.