Executive Summary
Mecom is one of the leading European newspaper and content businesses. The Group owns over 300 titles in its five business divisions and publishes approximately 30 million copies per week. Headquartered in London, Mecom manages its operations on a country-by-country basis with each territory headed by a Chief Executive who reports to David Montgomery, the Group’s Executive Chairman. The Group’s divisions comprise the Netherlands, Denmark, Norway, Germany and Poland. For the year ended 31 December 2007 the Group’s pro forma revenue was £1,382.9 million, pro forma adjusted operating profit was £112.0 million and pro forma operating profit was £5.4 million.
Company History
- Mecom was established by David Montgomery in 2000, primarily to source and make investments in media assets in Europe.
- In March 2005, the Group raised approximately £45 million from its initial public offering and was admitted to trading on AIM. Since its IPO, Mecom has completed the following significant acquisitions:
- In June 2006, 100 per cent of LMG (part of the Group’s Dutch division) for approximately £133.3 million;
- In October 2006, 100 per cent of OMG (the Group’s Danish, Norwegian and Polish divisions) for approximately £613.3 million;
- In April 2007, approximately 78 per cent of Berliner Verlag (the Group’s German division) for approximately £129.4 million (in addition to its previously held stake of 15 per cent). The Group has subsequently acquired all of the outstanding shares in Berliner Verlag;
- Between April and October 2007, approximately 86.4 per cent of Wegener (part of the Group’s Dutch division) for, in aggregate, approximately £483.9 million;
Current Events
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Market & Competition
The global newspaper market, comprising both circulation and advertising revenue, is estimated to grow (in nominal terms) by 2.1 per cent per annum from 2007 to 2011. Within Europe, the Middle East and Africa, 87 per cent of which related to Western Europe in 2007, this figure is forecast to be 2.2 per cent per annum. Within this, the growth for the Netherlands, Denmark and Norway (Mecom’s principal markets) over that
period is forecast to be 1.5 per cent, 1.4 per cent and 2.1 per cent per annum respectively, with the revenue growth driven by increased advertising revenue. Growth in Poland is forecast to be 3.6 per cent per annum over the same period, and in Germany growth is forecast to be 0.7 per cent per annum.
The Western European…
