Friday, April 13, 2007

Never a dull moment at PCM

PCM is many illusions poorer as well as a lot money. Yet it improves its revenue flow due to a financial reconstruction and despite the hefty bonuses for the top management (of course the results could have been better if the bonuses had been added to the final results).

It is unbelievable that after so much mismanagement and turmoil there is still a reasonable financial result. The newspaper and book publishing company had a turn-over in 2006 of plus 3,4 percent from 653 to 675 million euro. The netto loss went down from 51 million euro in 2005 to 31 million euro in 2006.

The positive results were mainly made in the newspaper sector and the educational division. In the newspaper sector the job advertisements brought in more money as the Dutch economy is in full swing. And extra revenues at 50 million euro came from the sale of the book publisher Bohn Stafleu Van Loghum to Springer.

But what is the real status. The newspaper companies keep on working and still have to realise heavy cuts in their budgets. This while the managers of Apax leave with a fat profit and the top management cashes, while it is still possible. Two top managers have left in the meantime, each taking 2 million euro for less than two years of work. The CFO, who stays on, has returned his bonus of 1 million euro. Also two members of the shareholders’ board have left (of course without a bonus). So there is a CFO and a chairman of the shareholders’ board left.

In order to pimp up the picture of the company, PCM expects for the future:
• It has a fine starting position to profit from the economic upswing and new developments in newspaper and book publishing;
• The advertisement sector is picking up again, but the newspaper will have to look to get into the competitive game of television and internet (in The Netherlands newspaper publishers are not allowed yet to possess television stations);
• The company will invest in new products such as the free paper DAG; it aims to develop a cross-media news platform to reach younger target groups and invest in a multimedia strategy for the present quality titles (read established audience; mind you: cross-media for youngsters and multimedia for the elderly!)
• The newspaper and book divisions need to work on improving the results (of course after handing out bonuses so generously);
• The book publishing division will remain part of PCM and no longer be put up for sale.

So what is happening today?
- PCM is still negotiating in silence with the newspaper an book publishing company NDC/VBK. Mr Jan de Roos of NDC/VBK is rumoured to be the new CEO of the merger.
- Mr Marcel Boekhoorn, proprietor of the free paper De Pers has put a claim on the desk of PCM for 10 million euro. This claim represents the damage caused by PCM when the company was talking to Mr Boekhoorn about collaborating in De Pers project, but broke off talks and left promises unfulfilled..

Tomorrow there will be more on the 10 million euro claim and the project De Pers.

Blog Posting Number: 723

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1 comment:

Cindy said...

I love music, but I do not enjoy YouTube. I just think my life is limited therefore I would only want to spend time on listening to quality music. Even if I have to pay for them.

Young people of present days grow up with using computer, internets, MP2, Playstation etc. Would their preference change when they grow old? And would they also turn to reading books instead of off the screen?

I don't think it is just 'cultures' but also to do with physical abilities. I am finding it harder and harder to spend longer time reading off the screen. These days I 'listen' to news so that my eyes can rest. The only plus point is keyboard vs writing as and my fingers are becoming stiff with old age. Sign!