63rd WORLD NEWSPAPER CONGRESS

Session: FinanceTitle: PRISASpeaker: José Luis Sainz

Vienna, Reed Messe Wien

Mark your calendar

64th WORLD NEWSPAPER CONGRESS19th WORLD EDITORS FORUM

www.wan-ifra.org/kiev2012

FINANCE October, 14th 2011

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1-. CURRENT SITUATION

– CONVENTIONAL SHAREHOLDER MODEL– UNDERCAPITALIZED AND INDEBTED

COMPANIES– FAILURE IN DIVERSIFICATION AND DEFICIENT

BRAND EXPOSURE

– LOSS OF PROFITABILITY

– LOSS OF INDEPENDENCE

– UNCERTAINTY OF FUTURE BUSINESS MODEL

– THE DOUBLE CRISIS ACCELERATES THE CHANGE PROCESS

– DRAMATIC FALL OF INCOME: CIRCULATION, ADVERTISING AND ADD-ON PRODUCTS

– INSUFFICIENT FLEXIBILITY IN COST STRUCTURE:

• SUPPLIES, PRINTING AND DISTRIBUTION• STAFF AND COMMERCIAL TEAMS

– SLOW INTERNET DEVELOPMENT. LACK OF VISION

– NEW COMPETITORS

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– PRESS MEDIA AS A SOCIAL REFERENCE

– NEW BUSINESS MODEL

• CAPITAL RESTRUCTURING• ELIMINATE UNFEASIBLE AND NON-CORE BUSINESSES• RESIZE THE BUSINESS

– FOCUS ON CONTENTS AND BRAND

• CENTRALIZE SUPPORT ACTIVITIES, SPANNING THOSE OF OUR COMPETITORS• EXTERNALIZE PRINTING, DISTRIBUTION AND SERVICES ACTIVITIES

– STAFF DOWNSIZING AND RENEWAL OF PROFESSIONAL PROFILES

• INTEGRATE EDITORIAL STAFF AND PROCESS CHANGES• COMMERCIAL AND MARKETING GROUPS

– BOOST AUDIENCES AND BUILD UP LOYALTY

• GETTING TO KNOW OUR READERS/USERS AND CONVERTING THEM INTO CLIENTS• UPDATE MONETISATION SUPPORT

– TAKE ADVANTAGE OF STATE OF THE ART TECHNOLOGY

• CONCENTRATE CAPEX ON INTERNET/WEB• MULTI-DEVICE MODEL. TABLETS

– INTELLECTUAL PROPERTY PROTECTION

2-. WHAT CAN WE DO?

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– CHANGES SHAREHOLDERS STRUCTURE. STEADY MIDTERM FINANCIAL MODEL

– ESTABLISH FOUR BUSINESS DIVISIONS: PRESS, RADIO, TELEVISION AND EDUCATION

– “PRISA DIGITAL” AND ADVERTISING SALES ARE CROSS-SECTIONAL

– ALL BUSINESS DIVISIONS ARE PROFITABLE

– SET-UP OF “PRISA NOTICIAS”

3-. WHAT ARE WE DOING IN PRISA?

EL PAÍS

PRISA NOTICIAS

DIGITAL

MAGAZINESCINCO DÍASAS

COMMON SERVICES

PRINT

DISTRIBUTION

SPORTS ECONOMIC

PAPER/ INTERNET

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– INTERNATIONAL DEVELOPMENT, BASED ON BRAND VALUE

• EL PAÍS, A GLOBAL REFERENCE (65.000 copies sold abroad, 33% foreign internet traffic)

• THE STRENGTH OF SPANISH AND PORTUGUESE• EVENTS AS A BUSINESS• OPERATIVE IN 22 COUNTRIES

– TALENT AND CONTENTS AS THE NUCLEUS OF THE BUSINESS

• INTEGRATION OF NEWSROOM• CHANGE OF COLLECTIVE AGREEMENTS

– DEVELOPMENT OF THE TECHNOLOGICAL PLATFORM, COMMON TO ALL DIVISIONS, FROM PUBLICATION TO CUSTOMER

– UPDATING OF EDITORIAL OFFER IN ALL MEDIA SUPPORT

– CHANGES IN COMMERCIAL AND MARKETING BUSINESS MODEL: THE ADVERTISER

– TEAM MOTIVATION EMPHASIZING THE CARROT RATHER THAN THE STICK…

4-. WHAT ARE WE DOING IN PRISA?