Ú Gazeta Wyborcza, Agora`s flagship pub

Ú Gazeta Wyborcza, Agora’s flagship publication, as the only daily in Poland,
increased copy sales
Ú The program of development our printing base finalised
Ú The first stage of our internet offering
at www.gazeta.pl completed
Ú Continued expansion into the local radio
market: with 4 new launches this year,
Agora’s radio group numbers 14 local
radio stations
Ú Business Development Division set up to
push Agora’s new growth strategy ahead
Ú Construction work began on Agora’s new
premises, the first stage to be complet-
ed by December 2001
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Agora’s Accomplishments in 2000
Trends in the Advertising Market in Poland
Advertising market structure
In previous years, the advertising market in Poland
grew very quickly. Advertising spend almost tripled
between 1996 and 1999, primarily in the major consumer segments: automotive, finance and telecoms.
This high growth was driven mainly by structural
changes associated, among others, with the demonopolisation of the telecom sector and with the pension fund reform.
Source: AGB-Polska (TV), Agora (press),
CR Media (radio), Media Watch (outdoor)
Advertising expenditure as a percentage of GDP
Changes in advertising spend in 2000
Source: Agora Monitoring
Source: Agora
Implications:
The forecasts for growth of the advertising
Ú Advertising growth is slowing down
market in 2001 vary between 8% (Zenith Media) and
Ú The market is maturing
12.5% (Agora). Agora’s estimate assumes a 4%
Ú GDP is the key driver
growth of GDP. Hence, the realisation of these fore-
of advertising market growth
casts depends on the performance of the economy.
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Gazeta Wyborcza – track record of succes
Piotr Niemczycki, Vice President
Gazeta
Gazeta Wyborcza’s copy sales (in thousands)
Wyborcza
of Agora SA and Publisher: “In
spite of difficult market conditions, Gazeta Wyborcza was the only daily in
Poland which saw growth in copy sales in 2000,
and our advertising revenue grew faster than
Source: Circulation Audit Office
advertising spend in daily newspapers. We are particularly satisfied with our progress in the local
Advertising spend in 2000 - Agora’s performance
markets.”
Tracking Agora’s success
in the newspaper market:
Ú largest share of the print advertising market
Ú the print market grew by 15.7%, Agora’s advertising revenue by 17.9%
Source: Agora Monitoring
Ú local strategy bears fruit: advertising lineage
in Gazeta ’s local supplements grew by 10.9%
Sales in thousands
Sławomir Jędrzejewski, Agora Ad
Sales Director: “In 2000 we maintained Agora’s strong position in
the national and Warsaw markets thanks to a carefully designed and effective pricing policy.”
Source: Circulation Audit Office
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The high copy sales are
the effect of a number
of promotional cam-
paigns, new supple-
ments and reader con-
tests, such as Fantasy
Soccer.
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New supplements
Gazeta
Komiksowo – a car-
Wyborcza
We cross borders
„We’re with you in Europe”: this slogan tells our
toon weekly for children
readers where they can purchase Gazeta Wyborcza
became an instant hit.
abroad.
Launched on 25 February 2000 and published
Since 1990 we have been shipping the newspaper to
together with Gazeta’s
Germany and Sweden. By 2000 Gazeta was available
TV guide, it is the high-
in most European countries: Austria, Belgium, Den-
est circulation children’s magazine in Poland.
mark, France, Germany, Greece, Italy, the Netherlands,
Gazeta Wyborcza is the only daily in Poland
Spain, Sweden, the UK. See the map next page.
licensed to publish Walt Disney’s cartoons.
The Friday circulation of Gazeta Wyborcza with the
first issue of Komiksowo reached 900,000 copies.
Furthermore, we send Gazeta in electronic form to
Newspaper Direct in Canada. A current paper issue of
Average daily sales of TV guide together with
Gazeta is available via this company in a variety of
Komiksowo amounted to 658,000 copies,12.2%
hotels in Moscow, Sydney, Toronto, Vancouver and
more than in 1999.
Washington DC. In Washington and Vancouver you
can subscribe and have the current issue of Gazeta
Murowany
a
Rynek,
commercial
real
estate monthly supplement, was launched on
26 April 2000. It is particularly noted for its
reports (in Polish and
English) on the latest commercial real estate investments in Poland, and for its high quality photography. The supplement is read by investors, developers, architects, designers, and staff of real estate
agencies and central government offices.
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delivered to your doorstep at 6.30 am.
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You can find
the information
on Gazeta’s availability
abroad at
www.wyborcza/Iso/prenumerata
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printing
Agora’s investments in printing
– independent at last!
Ú Our team in Agora-Poligrafia’s printing plant in
Tychy had been fervishly installing new printing
presses from the beginning of the year. The plant was
launched in June and by July took over a part of production from the old Warsaw facility.
Ú The official opening of the new printing plant in
Białołęka took place in June 2000. By July the plant
was in full production.
Ú At the end of October 2000 we printed the first
copies of our supplements in the new printing plant in
Piła. By the beginning of December the plant was
producing at full capacity.
Piotr Parnowski, Head of the Printing Division at Agora: “30 December 2000 was the last day of Gazeta’s production in the cold-set technology in printing
plants not belonging to Agora. The most important
stage of building our own printing infrastructure has
thus been completed.”
The completion
of Agora’s printing
investment programme
is a milestone for
Gazeta’s further
development
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Agora’s Accomplishments in 2000
Agencja Gazeta – photo service
Agencja Gazeta, created in 1996 by Gazeta Wybor-
Agencja
Gazeta
Ú Agencja Gazeta also co-operates with over ten
advertising agencies for whom we conduct photo
cza’s photo department, offers:
sessions in our studio equipped with the latest dig-
Ú photographs by 100 Gazeta’s photo reporters in
ital photo technology.
Poland
Ú In 2000 Agencja Gazeta’s turnover from picture
sales grew by over 35%.
Ú an archive of 3 million photos, including 600,000 in
the electronic database
Agencja Gazeta’s sales
Ú 100,000 photos (in 2001 – 140,000) in our
in PLN
www.agencja.Gazeta.pl database, available for purchase via the Internet
Ú a daily service of national and foreign photographs
from Gazeta Wyborcza and Associated Press,
whom we represent in Poland.
Waldemar Kompała, Head of
Agencja Gazeta: “We offer the
greatest number of pictures online in Poland. We co-operate on regular basis with
over 100 publications which buy our pictures.”
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Source: Agora
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Internet
Agora on the Internet
– we now have our own portal
wwww.gazeta.pl
We have finalised
the first stage of work
on our www.gazeta.pl portal.
Its technological foundation
is now completed:
a new distribution channel
for Gazeta’s content
and an enhanced system
for creating content
for the portal
and its vertical channels
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Helena Łuczywo, Head of the
Internet
Internet project and Agora Board
Member: “In a very short period
of time Agora has completed a tremendous project
requiring close co-operation of many divisions in the
company. Thanks to everybody’s commitment, current work on the portal project requires relatively
small teams of technology and editorial staff. We will
develop the content of the portal primarily by partnerships with other companies and portals.”
As part of portal
We use the Internet to:
Ú distribute
development,
the
the www.gazeta.pl
company has under-
and www.wyborcza.pl
gone a process of
Ú provide access to Gazeta’s archive
reengineering
Ú our photo service offering
and
„internetisation”.
– agencja.gazeta.pl
A unique editorial content creation and management
system, developed by the Internet Project, has
and to:
Ú sell materials prepared
enabled us to reorganise Gazeta Wyborcza’s newsrooms. Texts prepared by journalists are simultane-
by Agora Monitoring
– our press advertising
market monitoring system
Ú collect orders from our advertising
clients
Ú publish Gazeta in a version for the blind
ously forwarded both to print, to Gazeta’s electronic
version (www.wyborcza.pl) and to the www.gazeta.pl
portal, where they are automatically placed in the relevant section. In effect, content creation is now more
cost-effective.
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Internet
Anna Biały, Vice-President of CHI
The electronic mall is one of
elected by Agora: “Agora will be
key ventures associated with
responsible for the sale of CHI
Agora’s Internet portal and ComputerLand’s signifi-
services to clients and will leverage its own sales
force for this purpose.”
In 2001 Agora will focus on transforming its portal
As part of the development of our Internet project,
into an Internet business venture, mainly by way of
in November 2000 Agora SA and ComputerLand SA
building verticals, i.e. thematic services enabling on-
established a joint venture, Centre for Internet Com-
line transactions and generating revenues. The Inter-
merce (CHI). The company will run an e-commerce
net Project has a strong sales team and is now cre-
shopping mall at www.vendi.pl, and aims to host
ating a new business development team.
e-shops and web sites.
Bogdan Wiśniewski, President of
CHI, on behalf of ComputerLand
commented: “ComputerLand will
be responsible for the design and implementation of
software and will provide professional services during its development.”
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cant investment in e-commerce.
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Radio stations
Agora – a hit in local markets
In 2000 Agora expanded its radio venture by four
radio
stations
number one local operator, right behind the two
national broadcasters.
In almost all the markets Agora’s stations are top
new stations:
rated. Radio Karolina in Silesia, Radio Kolor in Wro-
Ú in January: Radio na Fali in Świnoujście started to
claw, Radio Pogoda in Warsaw, Radio C. in Czesto-
broadcast a Golden Oldies program
chowa and Radio POP in Poznań are the most popu-
Ú in February: we launched Radio Klasyka 103.7 FM
lar local stations in these cities.
in Warsaw which plays classical and film music
Ú in April: 93.6 POP FM, a station based in Upper Silesia started playing pop music of the 80’s and the
90’s and Hot AC
Radio advertising market share
Ú November: Radio RES 95.7 FM, which plays ‘golden oldies’ broadcasted its first programme in
Rzeszów.
At the end of 2000 Agora’s radio group numbered
14 local radio stations.
According to CR Media, a radio advertising market
Source: CR Media
research company, our local radio stations had
a 10.5% share of the total radio ad market and
National audience share in the target group
ranked third after RMF FM (28.7%) and Radio Zet
(16.7%)
Agora’s local radio stations significantly increased
its share of the national audience in the target segment (in cities over 100,000 inhabitants, age 25-45)
according to SMG/KRC Radio Track. In 2000 the
share grew to 9.9% from 7.6% in 1999. We are the
Source: SMG/KRC Radio Track 2000
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radio
stations
Audience share in Katowice area
Janusz Janiec, Director of the
Local Radio Stations Division
4th quarter 1998
commented: “We aim to grow
Agora’s Radio Group. We can achieve this by
strengthening the market position of our existing stations, and above all, by acquiring new stations, either
by obtaining licenses or by purchasing shares in
companies that broadcast radio programmes. A key
factor that will determine further growth is the attitude of the National Broadcasting Council towards
4th quarter 1999
Agora. We expect that the Council will support our
strategy bearing in mind our success in developing
the local Polish radio market.”
4 quarter 2000
Source: SMG/KRC Radio Track 2000
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new premises
Wojciech Kamiński, Head of Staff
and Support Division noted: “Currently over 1600 Agora employees in Warsaw work in eight different buildings in
Warsaw. Bringing everyone together in one place will
not only lower the costs of logistics and technology,
but will also rationalise work organisation.”
The four-story building will stretch between Czerska
The general contractor
and Czerniakowska streets. The facade of promises to
selected by tender
be an eye catcher. It will be decorated with panels of
from among 60
red cedar, while decks will be constructed from
companies is an Austrian
African wood, iroco. The building is a design of JEMS
company Porr Polska.
Architeckci.
The contract is worth
PLN 152 million.
The premises
will be built in two
Gazeta’s first premises at Iwicka Street in 1989
phases. The first
will be completed
in December 2001.
The second stage
will begin with the
demolition of the current
newsroom premises
in Czerska Street and
should be completed
by August 2002.
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