Annual Report 2010

Eesti Meedia Group

  • Strong growth in traffic for the online news sites Postimees.ee and 15min.lt.
  • Record profits for Kroonpress.
  • Online classifieds service Soov.ee launched on the Blocket platform.
  • Leading position in TV.
EESTI MEEDIA GROUP (EEK million)20102009
Operating revenues 1,130 1,069
Operating profit (EBITA) 39 22
Operating margin (EBITA) (%) 3 2

The Baltic countries have been badly affected by the economic recession in Europe. Despite a difficult market, Eesti Meedia increased its overall profit, and restructuring processes began to show positive results for the group.

The Eesti Meedia Group is the holding company for all of Schibsted’s operations in Estonia and Lithuania.

Eesti Meedia is the leading media company in Estonia, owning the country's largest TV channel (Kanal 2), newspapers (Postimees and Öhtuleht), a weekly magazine publishing house (Ajakirjade Kirjastus) and a printing house (Kroonpress). 

The Lithuanian operation consists of the weekly magazine publishing house ZLG, the free newspaper 15 Min and the online classifieds company Plius, all of which hold leading positions in their respective market segments.

AMBITIONS

  • To become the market leader in online classifieds in Lithuania as well.
  • Enter the Latvian online market.
  • Focus on organizational development, with particular focus on Postimees as media house (Estonian and Russian editions, online and offline).
  • Companies in Eesti Meedia Group

    Postimees

    Postimees is Estonia’s largest newspaper, with a circulation of approximately 60,000 for the Estonian-language edition and ca. 11,000 for the Russian-language edition. Postimees also publishes the weekly newspaper Den za dnjom, the second-largest Russian-language newspaper. The online news site Postimees.ee continues to grow and is the second-biggest in Estonia, with approximately 700,000 unique users per week.

    • Postimees.ee continues to experience strong growth in terms of number of visits and online advertising revenue.
    • Significant increase in online revenues for the entire group.

    Postimees.ee

    The website for the Postimees newspaper is Estonia’s second-largest online news site. At the end of 2010 it had approximately 700,000 unique users.

    • Continued growth in traffic for Postimees.ee.
    • Growth in revenues compared to 2009.

    Õhtuleht

    Õhtuleht is Estonia’s second-largest newspaper, after Postimees, with a circulation of approximately 49,000 mainly on a subscription basis. Õhtuleht did relatively well in 2010, and was one of Eesti Meedia’s most profitable projects.

    • Continued fall in circulation.
    • Increase in the number of online readers.
    • Online advertising revenues increasing in scope and significance for the newspaper.

    Ühinenud Ajalehed

    Ühinenud Ajalehed is the parent company of five of Estonia’s most important local and regional newspapers. The company was established in 2009, and organized the same way as Media Norge.The local advertising markets fell slightly less in 2010 than the national ones, and the local newspapers showed an overall positive operating profit in 2010.

    • All local newspapers gathered under one media house.
    • Significant economies of scope due to centralizing advertising sales.
    • Stable circulation and increase in the number of online readers.

    Linnaleht

    Linnaleht is the leading free newspaper in Estonia. It is published once a week in Tallinn  (in both Estonian- and Russian-language versions), Tartu and Pärnu. It has been focus on cost reductions throughout 2010, 

    15 Min

    The Lithuanian free newspaper 15 min is the second-largest newspaper in Lithuania’s three biggest cities of Vilnius, Kaunas and Klaipeda. Decline in advertising revenues, particularly in the first half of the year. Advertising revenues rallied in the second half of the year.

    • Maintained its circulation for the print newspaper.
    • After a steep fall in advertising revenues, the company has managed to stabilize its financial results.

    15min.lt

    The free newspaper 15 min launched its website as late as in August 2008, but at the beginning of 2011 it consolidated its position as Lithuania’s third-most visited online news site and the country's fifth-most visited website.

    • Strong growth in traffic in 2010.
    • Achieved good user loyalty on its online news site.
    • Named Lithuania’s most innovative media company, due mainly to its focus on innovation and its ventures into new services and new media platforms.

    Kanal 2

    The TV channel Kanal 2 is Estonia’s largest, and in 2010 had an audience share of 17 per cent.

    • Stable, leading position in the Estonian TV market in terms of audience numbers.
    • Advertising revenues have begun to recover after the financial crisis.
    • Further consolidation of the digital TV channel Kanal 11’s market position.

    Kroonpress

    Kroonpress is an ultra-modern and efficient printing house which prints all of Schibsted's Estonian newspapers and Estonian and Lithuanian weekly magazines. Kroonpress is experiencing an increase in new orders from customers outside the Baltic region, particularly from Scandinavia. It publishes newspapers, magazines and advertising material for internal and external customers in Scandinavia.

    • Extremely profitable operations in 2010.
    • Success in the export markets (Norway, Sweden and Denmark).
    • Efficient and good utilization of its machinery resources. 

    ZLG

    ZLG (Zurnalu leidybos grupe) is the largest publisher of weekly magazines in Lithuania. ZLG publishes 12 different magazines, the most important title being Zmones (People). ZLG’s book venture continues to grow.

    • Consolidated its position as the leading weekly magazine publisher in Lithuania with a growing market share.
    • Successful merger of various magazine titles.
    • The advertising market for magazines has recovered and is experiencing growth.

    Ajakirjade Kirjastus

    Ajakirjade Kirjastus, which is jointly owned by Eesti Meedia and Ekspress Group, is the dominant actor in the Estonian weekly magazines market. Kroonika is the leading title.

    • Largest weekly magazine publisher in Estonia.
    • Decline in circulation and circulation revenues.
    • The publishing operation for books has matured and is showing fewer growth opportunities.

    Soov

    Soov is a leading online classifieds company for all types of products and services in Estonia.

    • Strong market position in online classifieds, with a growing number of users.
    • Migrated to the Blocket platform.
    • Good collaboration with the other online classifieds companies in Schibsted.

    Plius

    Plius is one of Lithuania’s biggest online classifieds companies, holding strong positions in the car (Autoplius.lt) and real estate (Domoplius.lt) segments.

    • The first year of profit.
    • Successful reorganization of the company in 2010.
    • Focus on the car online classifieds company Autoplius.
  • Facts about Postimees (Content is updated)

    Postimees, Estonia’s largest newspaper, is published in Estonian and Russian.

    Postimees also publishes Den za Dnjom, the second-largest Russian-language newspaper. Postimees and Den za Dnjom currently dominate the Russian-language newspaper market.

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