TMG intends to reduce product portfolio
In addition to the already announced reorganisations and as a consequence of earlier announcements regarding improvements to financial margins, TMG announces its intention to divest a number of companies which do not contribute or contribute insufficiently to the formulated targets:
In the Netherlands:
- The magazines Elegance, Residence, Hitkrant, JAN, FHM, CosmoGirl! and Motoplus. A sales process will be launched in the weeks ahead.
- The TTG titles Privé, Vrouw and Autovisie will not be part of the sales process, as these titles are closely affiliated with the daily newspaper De Telegraaf and the markets the company serves.
- The 84% interest in Media Librium BV, market leader in digital out-of-home media.
In Sweden: the portfolio of magazines and internet sites in the top segment of the living, interior and design, boating, sailing and golf markets, and the women’s magazine market.
In Ukraine: the portfolio of magazines with associated internet sites.
Discussions about takeovers with publishers in the Netherlands, Sweden and Ukraine have already started. It is anticipated that the above mentioned companies will achieve 2008 revenues of almost € 40 million. The companies provide employment to a total of 351 FTE.
Ad Swartjes, CEO of TMG: ‘In the interest of all stakeholders, TMG is focused on improving its return. Therefore economies of scale are important. This is not the case at TMG’s magazines. Autonomous growth remained limited so far despite many initiatives. Acquisitions were not realised. Therefore TMG now opts for the discontinuation of this part of the portfolio.’
TMG also announces that the fortnightly magazine Carp will be replaced by Carp.nl at the end of the year. The site will be a full replacement for the magazine, both in terms of the range of jobs and editorial content. The rapidly deteriorating situation in the employment market and an accelerated migration from print to online played an important role in this decision.
There are no plans to do substantial investments in new printing presses, because the current configuration clearly meets the requirements regarding functionality and reliability.