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Global - Publishing 0199 - 2129 - 2012

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MarketLine Industry Profile

Global Publishing April 2013

Reference Code: 0199-2129

Publication Date: April 2013

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EXECUTIVE SUMMARY Market value The global publishing market grew by 1.6% in 2012 to reach a value of $278,353.7 million.

Market value forecast In 2017, the global publishing market is forecast to have a value of $304,946.2 million, an increase of 9.6% since 2012.

Category segmentation Books is the largest segment of the global publishing market, accounting for 41.6% of the market's total value.

Geography segmentation Europe accounts for 37.7% of the global publishing market value.

Market rivalry The success of the publishing market, wholly dependent on consumer spending, is strongly related to measurable factors, such as economic growth and employment levels, and these factors also affect competition in this market.



TABLE OF CONTENTS Executive Summary ....................................................................................................................................................... 2

Market value ............................................................................................................................................................... 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market rivalry .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 6

Market definition ......................................................................................................................................................... 6

Market analysis .......................................................................................................................................................... 6

Market Data ................................................................................................................................................................... 7

Market value ............................................................................................................................................................... 7

Market Segmentation ..................................................................................................................................................... 8

Category segmentation .............................................................................................................................................. 8

Geography segmentation ........................................................................................................................................... 9

Market Outlook ............................................................................................................................................................. 10

Market value forecast ............................................................................................................................................... 10

Five Forces Analysis .................................................................................................................................................... 11

Summary .................................................................................................................................................................. 11

Buyer power ............................................................................................................................................................. 12

Supplier power ......................................................................................................................................................... 13

New entrants ............................................................................................................................................................ 14

Threat of substitutes ................................................................................................................................................. 15

Degree of rivalry ....................................................................................................................................................... 16

Leading Companies ..................................................................................................................................................... 17

Bertelsmann AG ....................................................................................................................................................... 17

Lagardere SCA ........................................................................................................................................................ 21

News Corporation .................................................................................................................................................... 25

Time Warner Cable Inc ............................................................................................................................................ 29

Appendix ...................................................................................................................................................................... 33

Methodology ............................................................................................................................................................. 33

Industry associations ................................................................................................................................................ 34

Related MarketLine research ................................................................................................................................... 34



LIST OF TABLES Table 1: Global publishing market value: $ million, 2008–12(e) ..................................................................................... 7

Table 2: Global publishing market category segmentation: $ million, 2012(e) ............................................................... 8

Table 3: Global publishing market geography segmentation: $ million, 2012(e) ............................................................ 9

Table 4: Global publishing market value forecast: $ million, 2012–17 .......................................................................... 10

Table 5: Bertelsmann AG: key facts ............................................................................................................................. 17

Table 6: Bertelsmann AG: key financials ($) ................................................................................................................ 18

Table 7: Bertelsmann AG: key financials (€) ................................................................................................................ 18

Table 8: Bertelsmann AG: key financial ratios.............................................................................................................. 19

Table 9: Lagardere SCA: key facts .............................................................................................................................. 21

Table 10: Lagardere SCA: key financials ($) ................................................................................................................ 23

Table 11: Lagardere SCA: key financials (€) ................................................................................................................ 23

Table 12: Lagardere SCA: key financial ratios ............................................................................................................. 23

Table 13: News Corporation: key facts ........................................................................................................................ 25

Table 14: News Corporation: key financials ($) ............................................................................................................ 27

Table 15: News Corporation: key financial ratios ......................................................................................................... 27

Table 16: Time Warner Cable Inc: key facts ................................................................................................................ 29

Table 17: Time Warner Cable Inc: key financials ($) .................................................................................................... 30

Table 18: Time Warner Cable Inc: key financial ratios ................................................................................................. 31



LIST OF FIGURES Figure 1: Global publishing market value: $ million, 2008–12(e) .................................................................................... 7

Figure 2: Global publishing market category segmentation: % share, by value, 2012(e) ............................................... 8

Figure 3: Global publishing market geography segmentation: % share, by value, 2012(e) ............................................ 9

Figure 4: Global publishing market value forecast: $ million, 2012–17 ........................................................................ 10

Figure 5: Forces driving competition in the global publishing market, 2012 ................................................................. 11

Figure 6: Drivers of buyer power in the global publishing market, 2012 ....................................................................... 12

Figure 7: Drivers of supplier power in the global publishing market, 2012 ................................................................... 13

Figure 8: Factors influencing the likelihood of new entrants in the global publishing market, 2012 ............................. 14

Figure 9: Factors influencing the threat of substitutes in the global publishing market, 2012 ....................................... 15

Figure 10: Drivers of degree of rivalry in the global publishing market, 2012 ............................................................... 16

Figure 11: Bertelsmann AG: revenues & profitability .................................................................................................... 19

Figure 12: Bertelsmann AG: assets & liabilities............................................................................................................ 20

Figure 13: Lagardere SCA: revenues & profitability ..................................................................................................... 24

Figure 14: Lagardere SCA: assets & liabilities ............................................................................................................. 24

Figure 15: News Corporation: revenues & profitability ................................................................................................. 27

Figure 16: News Corporation: assets & liabilities ......................................................................................................... 28

Figure 17: Time Warner Cable Inc: revenues & profitability ......................................................................................... 31

Figure 18: Time Warner Cable Inc: assets & liabilities ................................................................................................. 32



MARKET OVERVIEW Market definition The publishing market consists of books, newspaper and magazines segments. The book publishing industry comprises publishers of academic, professional, general and other (fictions, non-fiction etc.) books. The newspaper market is valued as the sum total of all revenues gained from the selling of newspapers including those gained through circulation, subscription (inc. online subscription), but not including those revenues gained through advertising. The market value of this segment refers to the domestic B2C sales of books only at the retail sales price (RSP). The newspaper and magazine segment value is calculated as the revenues generated by publishers from B2C sales of copies of their products, and does not include advertising revenues. Any currency conversions used in the creation of this report have been calculated using constant 2011 annual average exchange rates.

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, MEA, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

Market analysis After a period of slow and rather unexciting growth, the global publishing market is expected to stabilize in the forecast period, with annual rate gradually increasing towards 2017.

The global publishing market is expected to generate total revenues of $278.4bn in 2012, representing a compound annual growth rate (CAGR) of 0.6% between 2008 and 2012. In comparison, the European market will decline with a compound annual rate of change (CARC) of -0.6%, and the Asia-Pacific market will increase with a CAGR of 2.6%, over the same period, to reach respective values of $104.9bn and $104.4bn in 2012.

The books segment is expected to be the market's most lucrative in 2012, with total revenues of $115.8bn, equivalent to 41.6% of the market's overall value. The newspapers segment will contribute revenues of $82.7bn in 2012, equating to 29.7% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 1.8% for the five-year period 2012 - 2017, which is expected to drive the market to a value of $304.9bn by the end of 2017. Comparatively, the European and Asia-Pacific markets will grow with CAGRs of 0.4% and 3.7% respectively, over the same period, to reach respective values of $106.9bn and $125.4bn in 2017.

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MARKET DATA Market value The global publishing market grew by 1.6% in 2012 to reach a value of $278,353.7 million.

The compound annual growth rate of the market in the period 2008–12 was 0.6%.

Table 1: Global publishing market value: $ million, 2008–12(e)

Year $ million € million % Growth 2008 271,405.8 195,087.6

2009 268,813.8 193,224.4 -1.0

2010 273,526.4 196,611.8 1.8

2011 274,075.0 197,006.2 0.2

2012(e) 278,353.7 200,081.7 1.6

CAGR: 2008–12 0.6%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Global publishing market value: $ million, 2008–12(e)




MARKET SEGMENTATION Category segmentation Books is the largest segment of the global publishing market, accounting for 41.6% of the market's total value.

The Newspapers segment accounts for a further 29.7% of the market.

Table 2: Global publishing market category segmentation: $ million, 2012(e)

Category 2012 % Books 115,846.2 41.6%

Newspapers 82,730.5 29.7%

Magazines 79,777.0 28.7%

Total 278,353.7 100%


Figure 2: Global publishing market category segmentation: % share, by value, 2012(e)


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Geography segmentation Europe accounts for 37.7% of the global publishing market value.

Asia-Pacific accounts for a further 37.5% of the global market.

Table 3: Global publishing market geography segmentation: $ million, 2012(e)

Geography 2012 % Europe 104,940.2 37.7

Asia-Pacific 104,370.2 37.5

Americas 63,113.5 22.7

Middle East & Africa 5,929.7 2.1

Total 278,353.6 100%


Figure 3: Global publishing market geography segmentation: % share, by value, 2012(e)




MARKET OUTLOOK Market value forecast In 2017, the global publishing market is forecast to have a value of $304,946.2 million, an increase of 9.6% since 2012.

The compound annual growth rate of the market in the period 2012–17 is predicted to be 1.8%.

Table 4: Global publishing market value forecast: $ million, 2012–17

Year $ million € million % Growth 2012 278,353.7 200,081.7 1.6%

2013 281,994.0 202,698. 1.3%

2014 286,698.5 206,080.0 1.7%

2015 292,192.8 210,029.3 1.9%

2016 298,183.7 214,335.6 2.1%

2017 304,946.2 219,196.5 2.3%

CAGR: 2012–17 1.8%


Figure 4: Global publishing market value forecast: $ million, 2012–17


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FIVE FORCES ANALYSIS The publishing market will be analyzed taking publishing companies as players. The key buyers will be taken as individual consumers, and paper merchants, renters of office space and equipment, suppliers of printing equipment as the key suppliers.

Summary Figure 5: Forces driving competition in the global publishing market, 2012


The success of the publishing market, wholly dependent on consumer spending, is strongly related to measurable factors, such as economic growth and employment levels, and these factors also affect competition in this market.

The publishing market offers products, which are highly influential in the educational system, socio-political and cultural environment.

Buyers within this market are numerous, small and have little financial muscle. This weakens their power.

Paper merchants, providers of printing equipment, renters of office space, and computer manufacturers are all deemed as suppliers within this market. Such suppliers vary in size and number, depending on the specific supply.

The publishing market is not only driven by the physical books, newspapers, or magazines, but various other forms of mass-media, such as online versions and e-books, which continue to gain increased popularity.

There are other forms of entertainment considered as substitutes to the publishing market, including television, CD-ROM learning software and computer games, to name a few.

Generally, large publishers that are diversified through various subsidiaries, spanning a broad range of media activity, such as Bertelsmann AG, Time Warner Inc. and Lagardere, dominate the market. Independent publishers can cater for niche markets, as well as provide their products at reduced costs. Consequently, they are finding themselves more in demand.

The publishing market is facing higher levels of competition due to the increased popularity of online resources and e-books.

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Buyer power Figure 6: Drivers of buyer power in the global publishing market, 2012


Publishing companies, who produce, serve and/or market media in the disciplines of books, magazines and newspapers, are the players in this market; while individual consumers are considered as buyers. As buyers are numerous, small and have little financial muscle, their power is weakened.

Publishing products are hugely influential in the education system, as well as the socio-political and cultural environment. Much published media can be classed as a luxury, rather than essential items. In such case buyer power is strengthened. However, in the case of professional or academic texts, which may be considered essential to consumers, buyer power is diminished.

Products in this market tend to be differentiated in terms of author, genre, fiction/non-fiction etc. Whilst loyalty to a publisher will be negligible in this market, customers are likely to show loyalty towards certain authors, magazines, newspapers etc. An exception may be, for example, publishing house that publishes literary classics. There are no switching costs for buyers in this market; however, the loyalty shown by consumers to particular authors/genres etc. may prevent them from switching.

Price sensitivity in this market tends to be directed towards the retailer, as opposed to the publisher.

Overall, buyer power is weak in this market.

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Supplier power Figure 7: Drivers of supplier power in the global publishing market, 2012


Suppliers to the publishing market include paper merchants, providers of printing equipment, renters of office space, computer manufacturers etc. These various suppliers vary in size and number, depending on the specific supply. Some of them can exert a strong supplier power.

Furthermore, paper is a key resource to this market and the price of specific sorts of paper varies, depending on quality, which increases the supplier power of paper merchants to an extent.

Overall, supplier power is moderate.

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New entrants Figure 8: Factors influencing the likelihood of new entrants in the global publishing market, 2012


There are various ways of entering the publishing market. However, paper is a key resource here and new entrants would need to establish relations with paper merchants for regular supplies beforehand. Additionally, setting up printing presses to mass-produce newsprint, books and magazines will require substantial capital outlay, which may not be viable for newcomers.

The major players have established international brands, which are widely recognized. However, it may be possible for new entrants, such as smaller independent companies, to target a niche market within say, the magazine segment, focusing on a specific consumer demographic or interest, to differentiate themselves from other players.

The publishing market is not only driven by the physical books, newspapers, or magazines, but also other forms of mass-media, such as online versions, which continue to gain popularity. The internet has had a significant impact on existing and emerging market players’ strategy. The market continues to attract new entrants, as technological development facilitates new ways of producing content to reach a wider group of consumers. Anyone with access to a PC or a laptop and the internet can publish material on a whole range of topics, meaning that consumers are accessing materials through various media outlets. While such activity may not have an instant impact on publishing revenues or prices, it does mean that people are increasingly publishing both niche and mainstream material. This means that instantaneous nature of the internet could have a negative impact on the sales of niche magazines.

Government regulation in the form of copyright laws must be adhered to by all that operate.

Overall, the threat of new entrants is moderate.

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Threat of substitutes Figure 9: Factors influencing the threat of substitutes in the global publishing market, 2012


The publishing market can be substituted by other forms of media, educational materials and entertainment, such as television, CD-ROM learning software and computer gaming, to name just a few.

The internet allows for a substitution to the physical format of books, newspapers and magazines, with the option of online versions and e-books, with the advantage of updated versions and revisions being much easier and cost-effective to implement. Thus customer preferences have changed.

However, publishers are attempting to utilize the internet as part of their business by diversification, which includes providing their products to their consumers in other media formats.

Overall, the threat of substitutes is considered to be moderate.



Degree of rivalry Figure 10: Drivers of degree of rivalry in the global publishing market, 2012


Large publishers, such as Bertelsmann AG, Time Warner Inc. and Lagardere dominate the publishing market. Although they are diversified and operate through various subsidiaries spanning a broad range of media, there is intense competition between them.

Players differentiate themselves through the type of works that they publish, for example Reed Elsevier NV specialize in scientific and medical, legal, education and business sectors. However, essentially the process of production is very similar between players.

The relative low cost of expansion and capacity increases, mean that it is likely that the established companies will continue to dominate.

Despite this, regional companies are continuing to expand, diversifying operations and targeting new markets, which could increase rivalry furthermore. Additionally smaller, more independent companies have grown due to their flexible approach, which means they can work within niche markets at reduced costs.

Overall, there is a strong degree of rivalry.

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LEADING COMPANIES Bertelsmann AG

Table 5: Bertelsmann AG: key facts

Head office: Carl-Bertelsmann-Strabe 270, 33311 Gutersloh, DEU

Telephone: 49 52 41800

Fax: 49 52 41809662

Website: www.bertelsmann.com

Financial year-end: December

Ticker: BTG4

Stock exchange: Frankfurt

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Bertelsmann is an international media company involved in the creation and distribution of various media products and services. The company primarily is engaged in books publishing, TV broadcasting, magazine publishing, and media services. The company has operations in more than 50 countries.

The company conducts its operations through five segments: RTL Group, Arvato, Gruner + Jahr, Random House, and corporate.

RTL Group is one of the leading European entertainment networks. Its portfolio includes interests in 46 TV channels and 29 radio stations in nine countries. RTL Group's content production arm, Fremantle Media, produces more than 10,000 hours of programming across 54 countries. TV channels operated by RTL Group include RTL Television, Super RTL, Vox or N-TV in Germany; M6 in France; Antena 3 in Spain, RTL 4 in the Netherlands; RTL TVI in Belgium; and RTL Klub in Hungary, among others. Bertelsmann owns approximately 92% interest in RTL Group.

Arvato is engaged in designing and implementing customized solutions for business processes across integrated service chains. Its services include all services related to the manufacture and distribution of printed products and digital storage media, as well as data management, customer care, customer relationship management services, supply chain management, digital distribution, financial services, qualified and individualized information technology (IT) services, and direct-to-customer sales of media.

Gruner + Jahr is engaged in newspaper and magazine publishing business. The company owns more than 285 print titles and accompanying homepages in over 20 countries; printing plants in Germany and the US; and professional websites. It publishes five newspapers in Germany, including the Financial Times Deutschland and the Sachsische Zeitung. Gruner + Jahr's magazines include Stern, Brigitte, Geo, Capital, Schoner Wohnen, Eltern, Nor, among others. Bertelsmann owns 74.9% of Gruner + Jahr.

Random House is a print and digital trade book publisher, comprised of 200 editorially independent imprints in 15 countries. Its publishing houses include Doubleday and Alfred A. Knopf (US); Ebury and Transworld (UK); Plaza & Janes (Spain); Sudamericana (Argentina) and Goldmann (Germany).

The corporate segment includes the corporate center and corporate investments. The corporate centers are based in Gutersloh and the regional centers in New York, Beijing, and New Delhi. Bertelsmann's corporate investments include the music rights company BMG; the education-related activities; and the club and direct marketing businesses in Germany and Spain, including the direct marketing company Inmediaone formerly assigned to Arvato. Bertelsmann Digital Media Investments and Bertelsmann Asia Investments, the funds for digital media, are also allocated to corporate investments.

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Key Metrics The company recorded revenues of $21,220 million in the fiscal year ending December 2011, a decrease of 3.4% compared to fiscal 2010. Its net income was $2,429 million in fiscal 2011, compared to a net income of $913 million in the preceding year.

More recent financial information was not available for this company at the time of publication.

Table 6: Bertelsmann AG: key financials ($)

$ million 2007 2008 2009 2010 2011 Revenues 22,525.0 22,423.5 21,374.5 21,961.6 21,220.1

Net income (loss) 563.4 375.6 48.7 912.6 2,429.0

Total assets 30,294.9 28,007.8 26,958.8 26,125.5 25,247.6

Total liabilities 23,372.3 19,339.2 18,639.4 17,102.1 8,468.3

Employees 94,490 106,083 102,983 104,419 100,626

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 7: Bertelsmann AG: key financials (€)

€ million 2007 2008 2009 2010 2011 Revenues 16,191.0 16,118.0 15,364.0 15,786.0 15,253.0

Net income (loss) 405.0 270.0 35.0 656.0 1,746.0

Total assets 21,776.0 20,132.0 19,378.0 18,779.0 18,148.0

Total liabilities 16,800.0 13,901.0 13,398.0 12,2 3.0 6,087.0


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Table 8: Bertelsmann AG: key financial ratios

Ratio 2007 2008 2009 2010 2011 Profit margin 2.5% 1.7% 0.2% 4.2% 11.4%

Revenue growth (16.1%) (0.5%) (4.7%) 2.7% (3.4%)

Asset growth (3.2%) (7.5%) (3.7%) (3.1%) (3.4%)

Liabilities growth 4.6% (17.3%) (3.6%) (8.2%) (50.5%)

Debt/asset ratio 77.1% 69.0% 69.1% 65.5% 33.5%

Return on assets 1.8% 1.3% 0.2% 3.4% 9.5%

Revenue per employee $238,385 $211,377 $207,554 $210,322 $210,881

Profit per employee $5,963 $3,541 $473 $8,740 $24,139


Figure 11: Bertelsmann AG: revenues & profitability




Figure 12: Bertelsmann AG: assets & liabilities




Lagardere SCA Table 9: Lagardere SCA: key facts

Head office: 4 Rue de Presbourg, 75016 Paris, FRA

Telephone: 33 1 40 69 16 00

Website: www.lagardere.com


Ticker: MMB

Stock exchange: Euronext Paris


Lagardere is a media group with a diversified presence in various industry segments. The group is active in businesses related to news, education, culture, sports and entertainment. It has operations in nearly 30 countries. Lagardere operates over 412 consolidated companies.

The group operates through four business segments: Lagardere Services, Lagardere Publishing, Lagardere Active, and Lagardere Unlimited.

Lagardere Services is active in travel retail and press distribution businesses.

The travel retail business is engaged in retail sales to travelers through companies such as LS Travel Retail France, LS Travel Retail Asia-Pacific and LS Travel Retail North America. It has sales outlets in airports and train stations in over 21 countries and sells a wide range of products, including newspapers, magazines, books, confectionery, souvenirs, and food products, among others. In train stations and airports, Lagardere Services also operates stores selling small electronic devices, telephony accessories and mobile devices under the Fnac, Virgin, iStore, and Tech2go names. It also sells tourists products and souvenirs through the Air de Paris stores in France and the Discover stores in North America, Germany, Poland, Australia and Singapore. Lagardere operates 4,000 stores in 21 countries and 1,465 sales outlets trading under the Relay brand name in 14 countries.

The group also operates duty-free shops and specialist concept stores under its own brands (Aelia Duty Free, Buy Paris Duty Free, So Chocolate, and Fashion Gallery) and under international brand licenses (Hermes, Fauchon, Longchamp, Hugo Boss, and Lonely Planet). It operates approximately 240 stores. LS Travel Retail is also engaged in the provision of food service in travel areas. It operates nearly 300 food service outlets in six countries: France, Poland, Czech Republic, Belgium, Bulgaria and Canada, under its own branded stores (Trib's and Business Shark) and under international and local brand licenses (Paul, Costa Coffee, Panos, Mr. Baker, and Empirik Cafe).

Lagardere Services' distribution business operates through LS Distribution. LS Distribution is engaged in national press distribution and press imports/export; integrated retail operations; and other distribution activities. Lagardere Services supplies newspapers and magazines to sales outlets in 10 countries. LS Distribution operates a network of more than 1,900 press sales outlets in town centers and shopping malls, trading under names such as Inmedio in Eastern Europe, Press Shop in Belgium; Naville in Switzerland; and BDP in Spain. This network is complemented by the Payot bookstore chain in Switzerland, with 11 stores. LS Distribution's other distribution activities include distribution, brand-representation services, and dematerialized services.



The group's Lagardere Publishing business segment is engaged in book publishing and electronic publishing (e-publishing) businesses, which cover the areas of education, general literature, illustrated books, partworks, dictionaries and youth works and distribution. The segment's activities are conducted under the name of Hachette Livre, which publishes books in the three main language groups: English, Spanish and French. In France, Hachette Livre's general literature comprises publishing houses such as Grasset, Fayard, Stock, Calmann-Levy, Lattes and Harlequin. Its other publishing brands include Hachette Illustre, Alexandre Hatier, Bled, Bescherelle, Passeport, Littre, Gaffiot, Didier, Foucher, Larousse, Dunod and Armand Colin, among others. Lagardere Publishing brands outside France include Octopus, Orion, Hodder, Headline, Little, Brown, Hachette Children's Books, Hodder Education, Bookpoint, Little Hampton Book Services, Anaya, Salvat, Aique, Patria, Bruno, Grand Central Publishing, FaithWords, Orbit, Twelve, and Mulholland. Worldwide, Hachette Livre is represented either directly or indirectly in more than 70 countries across all of its business lines.

Lagardere Active business segment includes the group's magazine publishing, radio, television channels, audiovisual production and distribution, advertising sales brokerage, and digital businesses.

The segment publishes magazines under 38 titles and other licensed titles published internationally. Women's magazines form the core magazine portfolio, which also includes titles covering current affairs, interior decor, youth and leisure. Lagardere Active's flagship publications include Elle, Paris Match and Tele 7 jours. The group's radio business is engaged in radio broadcasting. It operates through three radio networks in France, which include Europe 1, Virgin Radio, and RFM. Outside France, Lagardere Active Radio International (LARI) operates radio broadcasting business in seven countries in Eastern Europe, Germany and South Africa. Its other radio stations include Radio Salu in Saarland; Radio Jacaranda in South Africa; Radio Zet in Poland; Europa Fm, Radio 21 and Vibe Fm in Romania; and Europa 2 in Slovakia. Altogether, Lagardere Active operates 23 radio stations outside France.

Lagardere Active's television channels include TiJi, Canal J, Gulli, MCM, MCM Pop, MCM Top, Mezzo and Mezzo Live HD. The Mezzo and Mezzo Live HD are broadcasted in 41 countries and have a reach of over 17 million households. In the audiovisual production and distribution business, the group supplies the digital terrestrial television (DTT), cable and satellite channels with program archives (drama, documentaries, animation) and programs for immediate broadcast (features, light entertainment, prime-time access), through its subsidiary Lagardere Entertainment. Lagardere Active offers advertising sales brokerage services through its subsidiary Lagardere Publicite, which market more than 150 brands through press, radio, television, internet, mobiles and tablets. The segment's digital business operates women's websites, entertainment websites, news radio website, and other websites.

Lagardere Unlimited business segment is engaged in the sports industry and entertainment businesses. The segment operates through complementary major business lines: management of broadcasting rights; marketing of rights and associated products; organization and management of events; talent representation; consulting in the management and operation of stadiums and multipurpose venues; and management of sports training academies.

Key Metrics The company recorded revenues of $10,253 million in the fiscal year ending December 2012, a decrease of 8.4% compared to fiscal 2011. Its net income was $124 million in fiscal 2012, compared to a net loss of $984 million in the preceding year.



Table 10: Lagardere SCA: key financials ($)


Net income (loss) 872.3 228.2 269.9 (983.6) 123.8

Total assets 17,155.0 15,477.2 15,165.6 12,420.7 13,021.7



Table 11: Lagardere SCA: key financials (€)

€ million 2008 2009 2010 2011 2012 Revenues 8,214.0 7,892.0 7,966.0 8,048.0 7,370.0

Net income (loss) 627.0 164.0 194.0 (707.0) 89.0

Total assets 12,331.0 11,125.0 10,901.0 8,928.0 9,360.0



Table 12: Lagardere SCA: key financial ratios

Ratio 2008 2009 2010 2011 2012 Profit margin 7.6% 2.1% 2.4% (8.8%) 1.2%

Revenue growth (4.3%) (3.9%) 0.9% 1.0% (8.4%)

Asset growth (3.5%) (9.8%) (2.0%) (18.1%) 4.8%

Liabilities growth (1.0%) (10.7%) (2.3%) (14.2%) 7.9%

Debt/asset ratio 63.9% 63.3% 63.1% 66.1% 68.0%

Return on assets 5.0% 1.4% 1.8% (7.1%) 1.0%


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Figure 13: Lagardere SCA: revenues & profitability


Figure 14: Lagardere SCA: assets & liabilities




News Corporation Table 13: News Corporation: key facts

Head office: 1211 Avenue of the Americas, New York City, New York 10036 USA

Telephone: 1 212 852 7000

Fax: 1 212 207 7145

Website: www.newscorp.com

Financial year-end: June

Ticker: NWS

Stock exchange: NASDAQ


News Corporation is a global media company with operations across six industry segments: publishing; cable network programming; filmed entertainment; television; direct broadcast satellite television; and other. The company operates principally in the US, Continental Europe, the UK, Australia, Asia and Latin America.

News Corporation's publishing segment is engaged in newspapers and information services, book publishing and integrated marketing services businesses. The segment encompasses English-language newspapers and their digital brands, including three national news brands in the UK; approximately 150 national, capital city and suburban news brands in Australia; the New York Post and Community Newspaper Group in the US; the Wall Street Journal and its many related publications in the US, Europe and Asia; Dow Jones and its information services business; HarperCollins, an English-language book publishers; and News America Marketing, which publishes free-standing inserts and in-store marketing products and services in North America.

The company's cable network programming segment produces and licenses programming for distribution on cable television systems and direct broadcast satellite platforms in the US and Asia. The segment's channels include Big Ten Network, FOX Business Network, Fox Movie Channel, FOX News Channel, FOX College Sports, FOX Sports Enterprises, Fox Deportes, FOX Sports Net, FOX Soccer, Fuel TV, FX, Nat Geo Wild, National Geographic Channel United States, National Geographic Channel Worldwide, Speed, STAR, and Stats.

News Corporation's filmed entertainment segment is engaged in movie production and distribution business. The company engages in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide. News Corporation's Fox Filmed Entertainment (FFE) produces, acquires and distributes motion pictures. FFE's through Twentieth Century Fox and Fox 2000 units produce and acquire motion pictures for mainstream audiences; through Fox Searchlight Pictures it produces and acquires specialized motion pictures; and through Twentieth Century Fox Animation it produces feature length animated motion pictures. In addition, Fox International Productions co-produces, co-finances and acquires local-language motion pictures for distribution outside the US.

In television production, Twentieth Century Fox Television together with the company's other TV studios, produces and distributes television programming. The company's TV studios are leaders in animated series and supply many of the most popular series to each of the major US networks. News Corporation's other studios include 20th Century Fox Espanol, 20th Century Fox Home Entertainment, 20th Century Fox International, Fox Searchlight Pictures, Fox Studios Australia, Fox Studios LA, Fox Television Studios, and Blue Sky Studios.



The company's television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the US. The segment through Fox Television Stations owns and operates 27 full power stations, including stations located in nine of the top 10 largest designated market areas in the US. Of the 27 full power stations, 17 stations are affiliates of FOX Broadcasting Company. In addition, Fox Television Stations owns and operates 10 stations affiliated with Master Distribution Service.

FOX Broadcasting Company (FOX) has 203 FOX affiliates, including the 17 stations owned and operated by the company. In addition, a significant component of FOX's programming consists of sports programming, with FOX providing to its affiliates live coverage (including post-season) of the National Football Conference of the National Football League (and MLB, as well as live coverage of the Sprint Cup Series of the NASCAR. It also airs a two-hour block of direct response programming on Saturday mornings provided by Worldlink Ventures, a media sales firm. The segment's MyNetworkTV distributes two hours per night of original and off-network programming from Twentieth Television and other third party syndicators to its affiliates. It had 181 affiliates, including 10 stations owned and operated by the company.

News Corporation's direct broadcast satellite television segment is engaged in the direct broadcast satellite business through its subsidiary, SKY Italia. SKY Italia distributes more than 175 channels of basic, premium and pay-per-view programming services through satellite and broadband directly to subscribers in Italy. This programming includes exclusive rights to popular sporting events, newly-released movies and SKY Italia's original programming, such as SKY TG 24, Italy's first 24-hour news channel. At the end of FY2011, SKY Italia had approximately 4.97 million subscribers. The company also owns significant equity interests in BSkyB and Sky Deutschland, which are engaged in the direct broadcast satellite business.

News Corporation's other segment is engaged in digital media and other businesses. The company, through IGN Entertainment, provides Internet media and services focused on the videogame and entertainment markets. It also owns and operates the movie-related website, Rotten Tomatoes and the male lifestyle website, AskMen.com. Its games sites include IGN.com, 1UP, GameSpy, FilePlanet, TeamXbox and others. News Corporation, through Making Fun, develops and publishes social games. The company's Wireless Generation subsidiary provides mobile and web software, data systems and professional services that enable teachers to use data to assess student progress and deliver individualized instruction.

The company's other operations include its interests in FOX TV in Turkey and Channel 10 in Israel, which are free-to-air, general entertainment television stations. News Corporation's Australian online division News Digital Media is engaged in online advertising and transactions in Australia. Its sites include carsguide.com.au, news.com.au, MOSHTIX.com.au, GetPrice.com.au and truelocal.com.au. News Digital Media also has a 50% stake in CareerOne.com.au.

The company's other equity interests include 39% interest in BSkyB, 49% interest in NDS Group, 25% interest in FOXTEL, 44% interest in Sky Network Television, 32% equity interest in Hulu, and 49.9% equity interest in Sky Deutschland.

Key Metrics The company recorded revenues of $33,706 million in the fiscal year ending June 2012, an increase of .9% compared to fiscal 2011. Its net income was $1,179 million in fiscal 2012, compared to a net income of $2,993 million in the preceding year.



Table 14: News Corporation: key financials ($)


Net income (loss) 5,387.0 (3,378.0) 2,539.0 2,993.0 1,179.0

Total assets 62,308.0 53,121.0 54,384.0 61,980.0 56,663.0


Employees 64,000 55,000 51,000 51,000 48,000


Table 15: News Corporation: key financial ratios

Ratio 2008 2009 2010 2011 2012 Profit margin 16.3% (11.1%) 7.7% 9.0% 3.5%

Revenue growth 15.1% (7.8%) 7.7% 1.9% 0.9%

Asset growth (0.1%) (14.7%) 2.4% 14.0% (8.6%)

Liabilities growth 13.3% (10.8%) (2.2%) 11.0% (2.6%)

Debt/asset ratio 52.5% 54.9% 52.4% 51.1% 54.4%

Return on assets 8.6% (5.9%) 4.7% 5.1% 2.0%


Profit per employee $84,172 ($61,418) $49,784 $58,686 $24,563


Figure 15: News Corporation: revenues & profitability


Rosemary Breen

Rosemary Breen



Figure 16: News Corporation: assets & liabilities




Time Warner Cable Inc Table 16: Time Warner Cable Inc: key facts

Head office: 60 Columbus Circle, New York City, New York 10023, USA

Telephone: 1 212 364 8200

Website: www.timewarnercable.com


Ticker: TWC

Stock exchange: New York


Time Warner Cable Inc. (TWC or "the company") is one of the leading cable operators in the US, providing video, high speed data and voice services. TWC also sells advertising to national, regional and local advertising customers. The company operates in five geographic areas in the US, including New York State (including New York City), the Carolinas, Ohio, Southern California (including Los Angeles) and Texas. At the end of FY2011, TWC served approximately 14.5 million residential and commercial customers totaling approximately 27.1 million primary service units (PSUs).

The company operates through only one reportable segment. However, TWC incurs revenues from four sources: residential services, business services, advertising and other.

The company offers its residential and business service customers video, high speed data and voice services over its broadband cable systems.

TWC offers a broad range of residential video services. The company offers various tiers and packages of residential video programming and music services ranging from a basic service tier with approximately 15 channels to a full set of digital packages with over 400 channels. Its offerings include specialty tiers of genre-based programming, such as the Family Choice Tier, Time Warner Cable Movie Pass and Time Warner Cable Sports Pass, as well as packages such as El Paquetazo, with English and Spanish-language channels targeting Hispanics, and Time Warner Cable TV Essentials. TWC offers residential video subscribers approximately 140 high definition (HD) channels, including major broadcast networks, leading national cable networks, premium channels and regional sports networks, as well as a large selection of video on demand (VOD) programming in HD. As of December 31, 2011, TWC served approximately 11.9 million residential video subscribers.

TWC provides businesses a wide range of video programming tiers and music services. As of December 31, 2011, the company served 172,000 business video subscribers.

TWC offers high speed data services providing various service speeds and other attributes to residential customers. The company's residential high speed data service provides communication tools and personalized services, including email, personal computer (PC) security, parental controls and online radio services. Its Roadrunner.com portal provides access to content and media from local, national and international providers and topic-specific channels, including entertainment, dating, games, news, sports, travel, music, movie listings, shopping, ticketing and coupon sites. In addition, the company's cable systems offer the Earthlink high speed data service. As of December 31, 2011, TWC served approximately 10 million residential high speed data subscribers.

The company offers high speed data, networking and transport, voice and video services to businesses which are marketed under the Time Warner Cable Business Class brand. In addition, TWC offers cell tower backhaul services to wireless telephone providers, and transport to internet service providers and competitive carriers on a wholesale basis. As of December 31, 2011, TWC served 390,000 business high speed data subscribers.



TWC's residential voice service, Digital Home Phone, offers residential services customers unlimited local and long distance calling throughout the US, Canada and Puerto Rico, together with several calling features, including call waiting, call forwarding, caller identification (ID) and distinctive ring. As of December 31, 2011, the company served approximately 4.5 million residential voice subscribers.

The company's business voice services include Business Class Phone and Business Class PRI. Business Class Phone is a multi-line voice service, which provides various calling plans, along with other features such as call restrictions and three-way call transfer. Business Class PRI supports medium and enterprise-sized businesses with 23 simultaneous voice calls on each two-way trunk line. As of December 31, 2011, TWC served 163,000 business voice subscribers. In addition, the company, through its subsidiary, NaviSite, provides a range of managed hosting, cloud, application and messaging services and other related IT and professional services to businesses. NaviSite provides services globally, with data centers and offices in the US, the UK and India.

Further, TWC offers advertising services to national, regional and local customers. It also sells online and video advertising on its owned and operated local news, sports and lifestyle channels and its Roadrunner.com portal to local and regional advertisers.

Other revenues primarily include: fees received from the Advance/Newhouse Partnership and Insight for distributing TWC's Road Runner high-speed data service and management of certain functions; and commissions earned on the sale of merchandise by home shopping networks.

Key Metrics The company recorded revenues of $28,729 million in the fiscal year ending December 2012, a decrease of .8% compared to fiscal 2011. Its net income was $3,019 million in fiscal 2012, compared to a net income of $2,886 million in the preceding year.

Table 17: Time Warner Cable Inc: key financials ($)


Net income (loss) (12,146.0) 2,438.0 2,578.0 2,886.0 3,019.0

Total assets 113,896.0 65,730.0 66,524.0 67,801.0 68,304.0


Employees 87,850 31,000 32,000 31,000 34,000


Rosemary Breen

Rosemary Breen



Table 18: Time Warner Cable Inc: key financial ratios

Ratio 2008 2009 2010 2011 2012 Profit margin (45.8%) 9.5% 9.6% 10.0% 10.5%

Revenue growth 1.2% (2.8%) 4.3% 7.8% (0.8%)

Asset growth (14.9%) (42.3%) 1.2% 1.9% 0.7%

Liabilities growth (4.9%) (54.8%) 3.8% 12.7% 1.5%

Debt/asset ratio 62.9% 49.2% 50.5% 55.8% 56.3%

Return on assets (9.8%) 2.7% 3.9% 4.3% 4.4%


Profit per employee ($138,258) $78,645 $80,563 $93,097 $88,794


Figure 17: Time Warner Cable Inc: revenues & profitability




Figure 18: Time Warner Cable Inc: assets & liabilities




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