merry partners christmas newsletter hungaropress and a successful issue 04/2007 contents press page 3-4 market & economy tourism page 5 page 01
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1 issue 04/2007 contents page 2-3 partners we wish to all our press page 3-4 market tourism page 5 & economy is issued by distribution ltd h-1097 hungary budapest táblás u 32 phone fax hunpress@.hu merry christmas new and a successful year! published by hinnerk de boer managing director deadline december 11, 2007 page 01
2 news from Hungaropress Sponsors School Reading Program Supported by our international publishing partners, we participated in the HID (Press for Schools, the Hungarian abbreviation means 'bridge') program of Hungarian Publishers' Association. In the frame of this program publishers and press distributors send unsold copies to the participating schools for use in classes. Hungaropress has been sending from September to November an allotment of 800 copies per issue of certain English and German titles to 25 high schools, located both in Budapest and in the countryside. The aim of HID program is quite appealing to us: establishing the habit of regular newspaper and magazine reading at a relatively early age. New Inmedio Store Opened by Lapker The Branded Retail Division of Lapker Group opened on th November 15 an Inmedio outlet in the brand new Arena Plaza shopping mall, located in the Eastern outskirts of the Hungarian capital. With a surface of m2, thereof m2 for outlets, this new upmarket shopping centre is the largest mall in Central Europe. The POS is located in a very busy area in front of the Tesco hypermarket and has a surface of 56 m2. It offers an exquisite selection of international press. Delivery to Libri Bookstores At the beginning of December we started to deliver foreign press to Libri, one of the most important book store chains in Hungary. We agreed on a starting selection of 80 titles that are currently being tested in the two best located stores in shopping malls in Budapest. We hope that the results of the test will enable us to get access to the 45 Libri bookstores in Hungary. We would like to thank the following friends and partners for their visit at Hungaropress HQ: Ms Sumi Sastre from The Economist Ms Lia Loftus from The Economist Mr. Olivier Banchet from NMPP Helen Konstantopoulos from IHT New partwork distributed by Hungaropress We started the distribution of a new partwork called Hupikék Törpikék Sorozat (Smurfs Series) published by Eaglemoss Publishing Group in Poland. The publication has been translated to Hungarian and all the issues that have been published can be ordered at Hungaropress. The partwork can also be ordered via our website The publisher used to be very active in the Hungarian market at the end of the nineties producing successful partworks such as Famous painters or Drawing and painting. page 02
3 Christmas Promotion at At the end of November we organised a Christmas promotion at our recently renewed web site. Our goal has been, besides boosting the sales of foreign press, to highlight our recently introduced foreign book distribution activity. So, all new subscribers ordering online any foreign newspaper or magazine in our web shop 10% cheaper than the normal rate, also receive a coupon offering 10% extra discount on foreign books already 20-25% cheaper than the regular retail price. The Christmas promotion has been supported by print & online advertisements in several media, mainly local foreign language magazines and business dailies. We also sent out our first web-based html-format to subscribers, resulting in a significant increase in the number of visitors of the web site. Sport&Style: New Premium Magazine from Ringier As of November 30, 2007 a new magazine was introduced to the domestic press market by the Hungarian branch of Ringier in co-operation with Condé Nast - L'Equipe. The new title is about sport stars and fashion, illustrated by spectacular quality photography. The new magazine is priced at 990 Ft (EUR 3,95). Budapest Business Journal: New Strategy Budapest Business Journal (BBJ), the first Englishlanguage weekly in Hungary has a new owner: Absolut Media has already launched a re-organisation program in order to stabilise the financial background of BBJ and its related products. The new strategy includes renewing the strategic co-operation with Malév and Budapest Ferihegy airport, moving all media & marketing-related companies of Absolut Media to one headquarters and investing in the Budapest Business Journal web site, the latter being the main pillar of the strategy. National Media Analysis news from the press market Szonda Ipsos and GfK, two of the most important market research companies have recently published the latest survey on the press reading habits in Hungary. The survey has shown that the panel of 170 domestic titles generated 1 billion contacts in the past six months. The most popular category is women's interest, followed by TV guides. page 03
4 H.O.M.E. Magazine in Hungarian Aheadmedia Kft. has recently published the first issue of the Hungarian edition of the well-known international interior design and lifestlye title H.O.M.E. The launch in Hungary is the part of a region-wide project: local mutations of H.O.M.E. were also introduced in Slovenia, Slovakia and the Czech Republic. Together with the existing editions, local editions of H.O.M.E. are now available in six European countries. The price of the Hungarian edition is 490 Ft (EUR 1,95). Changes at MédiaLOG Fiege Zrt As we reported before in our, MédiaLOG Fiege, a joint venture company of 3 publishers and the German logistics firm Fiege AG entered the subscription market at the beginning of 2007 as a competitor of the subscription branch of Hungarian Post. The company had several difficulties at the beginning - industry gossip claimed that there were severe problems at the takeover of subscriber database from Hungarian Post - which led to significant losses in the first half of the year. Although the company managed to stabilise its financial situation thereafter, Fiege AG decided not to participate in the joint-venture anymore and communicated its intention to leave. The stocks of Fiege AG were bought by the three remaining shareholders, leading to a shareholder structure of 70% for Népszabadság Zrt & Ringier Kiadó Kft. together and 30% for Sanoma Budapest Zrt. Fiege AG will continue to provide the company with the software solution and consulting services. The new management declared that the company will remain open for other publishers to join anytime. (Source: Vogel Burda Leaving the Market Vogel Burda Communications Kft., the publisher of five IT magazines (Chip, Computer Panoráma, PC Guru, Mûszaki Magazin and IT-Business) in Hungary, is leaving the market, Kreatív Online reported. Although the publishers have not given out any official press release yet, three titles of the portfolio will definitely be taken over by Motor-Presse Budapest Kft. Computer Panoráma will probably be discontinued as it appeals to the same target group as Chip. It has been already announced that the IT-Business magazine shares will be bought by IT-Business Kft., founded by the employees producing the magazine. page 04
5 news from tourism&economy Hungary Ranks Second on Global List of Cheap Holiday Resorts Hungary was ranked second on the global list of holiday resorts with the best price-value ratios, overtaken only by Thailand. According to the Country Brand Index (CBI) 2007, compiled by the FutureBrand and Weber Shandwik marketing companies annually, Hungary has advanced eight places since last year, leaving its old regional rival, the Czech Republic, behind. Hungarian experts appreciated this qualification from the point of view of the country's marketing and suitability for attracting foreign tourists to Hungary. Tourism service providers, however, were less happy, saying that the index reflected a decline in their profitability. External, Internal Balance Expected to Improve Hungary's internal and external balances are expected to improve on expectations this year while growth will remain rather small together with a high inflation. GKI forecasts the government deficit to shrink to 6 percent of gross domestic product by the end of the year. The foreign trade deficit in the first three quarters will go back to 0,4 billion euros from 2 billion in the same period last year. Full-year average inflation is likely to stand at 7,9 percent. Tourism nights in public accomodation between January-September in thousand Germany (-9,2%) Austria (-2,8%) UK (-22,1%) USA (-4,5%) Italy (-6,8%) The Netherlands (-0,5%) Poland (+13,4%) France (+6,1%) Denmark (-7,6%) Economic Indicators I-X. GDP growth 4,6 4,1 3,9 0,9 Unemployment rate 6,1 7 7,5 7,3 Inflation 6,8 3,6 3,9 7,9 Consumer spending 3,2 2,6 3,7-1,6 Investment 9,1 4,7-2 -0,8 Industrial production 7,4 7 10,1 8,5 page 05
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