Publisher Defies Gravity, Launches New Daily

Michael Hedges August 18, 2011 Follow on Twitter

Business decisions for publishers are based on the bottom line. It can be cruel. Sometimes, at least for the more entrepreneurial, it’s instinct. And it’s always about timing.

Newspaper circulation and advertising in Poland, like many other markets, continues to drop like a rock. Internet portals are absorbing readers and, along with television, ad revenues. It’s obviously the best time to launch a new daily.

The publisher of weekly Gazeta Polska and news website Niezalezna.pl is set to bring six-day Gazeta Polksa Codziennie to the market in early September. It will be a “slightly right-wing political journal” in tabloid style, reported Press.pl (August 12). The initial print run will be 200 thousand copies. And, yes, there will be a sports section along with “crisp graphics.”

“This might be the breakthrough when it comes to pluralism in the Polish media,” said editor Tomasz Sakiewicz, quoted by Gazeta Wyborcza (August 10). Timing being everything, the new political tabloid launches exactly one month before the October 9th general election. Poland’s political junkies will have plenty to chew on.

The announcements timing coincides with Mecom Group’s sale of its 51% stake in Presspublica, publisher of influential right-leaning daily Rzeczpospolita, to Gremi Media (July 11), principally owned by entrepreneur Grzegorz Hajdarowicz, for €20 million. Last October the other Presspublica shareholder, the Polish State Treasury, went to court asking to dissolve the company because the four-person board, two seats for each side, could agree on nothing.

“Mecom has taken the opportunity of an unsolicited proposal for its holding in Presspublica to sell this operation for cash on terms which it views as attractive,” said the Mecom statement, “in light of the trading outlook for Presspublica and a lack of alignment with Presspublica’s minority shareholder, which Mecom believes may act as a constraint on the future development of the business.” Tisk. Tisk.

Fears in some circles were raised, however briefly, that Rzeczpospolita might revert to State ownership as outlined in the original partnership agreement. Oh, no, said Treasury Minister Aleksander Grad to TOK FM (August 9), indicating the State Treasury’s stake in Presspublica would be sold. “If we can agree and it will be beneficial to the Treasury we can do it as soon as possible.”

Mr Hajdarowicz said he’d like to buy the State Treasury’s stake, the value estimated at slightly less than €15 million. He hopes to repackage his media group, eventually floating it on the Warsaw Stock Exchange. Decisions by Poland’s Office of Competition and Consumer Protection and everyone else is expected in September.

While first half 2011 ad spending conquered the pre-Great Recession first half 2008 level, Poland’s daily newspapers continue to suffer. Media buyer Starlink reported first half 2011 ad revenues for daily newspapers off 5.3% year on year. The total ad market grew 4.9% over the same period 2010 to about €915 million. 

Poland’s leading publisher Agora Group reported higher revenues and lower profits for the first half 2011, year on year.  Advertising revenues for flagship daily Gazeta Wyborcza dropped 16.8% to about €32 million and copy sales dropped 10.6% to about €16 million. Free sheet Metro ad sales fell 9.4% year on year to about €3.5 million. Magazine revenues were also down.

Total first half revenues for Agora Group rose 16.2% to about €148 million. Revenues were up from internet portals (17.6%), radio operations (12.2%) and outdoor advertising (7.5%). Recently acquired cinema operator Helios contributed about €16 million to the revenue line.

In its statement Starlink concludes the “transfer” in ad spending to the internet and television is the result of less spending by fast moving consumer goods and more by financial institutions. Internet ad spending rose 23.2% compared with first half 2010, radio 5.7% and television 4.1%.

Through the breadth of Poland’s media it’s impossible not to notice the impact of the digital revolution. Specialized digital television channels are attracting viewers and investors. And every media house, publishers included, is honing their internet skills. But, still, the allure of the printed page continues.

See also in ftm Knowledge

Media in Poland

Poland is the biggest media market of the new EU Member States and the changes have been often surprising, sometimes radical and never ending. Publishers, broadcasters and new media are plentiful, talented and under constant stress. ftm has its eye on Poland. 43 pages PDF Includes Poland's neighbor Belarus, resources (March 2009)

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