Total revenues generated by Direct and Retail at year-end came to €279.7 million, an increase of 30.2% compared with 2009, also thanks to the consolidation of Mondolibri SpA from April 2010.
On a like-for-like basis, the increase would be of 6.5%, mainly thanks to new affiliations in the franchising network.
| (in €m) | 2010 | 2009 |
|---|---|---|
| Revenues | 276.4 | 214.8 |
| Other revenues | 3.3 | - |
|
|
279.7 | 214.8 |
| Operating costs | (266.0) | (204.4) |
| Gross operating profit | 13.7 | 10.4 |
| Amortisation and depreciation | (5.7) | (5.1) |
| Operating profit | 8.0 | 5.3 |
Direct
The market for direct communications in 2010 was characterised by a slight recovery and, in this context, Cemit Interactive Media SpA identified both new clients and new opportunities that resulted in an increase in revenues of around €23.8 million, up 14.3% on 2009, while also maintaining its high value added activities.
This allowed the company to pursue its policy of developing high-quality direct marketing projects that have met with increasing satisfaction by its clients, some of the most important companies in the FMCG, finance and insurance, automotive and non profit sectors in both Italy and Europe.
As in previous years, the Bookclub area is progressively shifting its activities from the postal channel to its retail outlets (currently 74) and the internet.
This is essentially linked to the almost total elimination of printed mailshots used to recruit new members, the result of new privacy legislation that has reduced the available information in profiles of potential customers and therefore making such activities economically unviable.
The e-commerce (bol.it) area saw substantial growth (+28%) compared with the previous year, the highest level among the relevant operators in the books sector. This was achieved thanks to improvements in customer service and the adoption of a more aggressive commercial policy.
Retail
During 2010 the expansion of the network in Italy continued, resulting in the generation of combined revenues of around € 202.7 million.
By normalising franchising revenues (i.e. converting them from the disposal value to the retail price), the total reaches around €250 million and puts Mondadori in a highly significant position in Italian bookselling and a predominant position in terms of the number of outlets (with a combined total of 517 outlets under the Edicolè, Librerie Mondadori, Gulliver and Mondadori Multicenter fascia).
As always the multichannel approach and the plurality of formulas constitute the key elements of the Group’s strategy for covering different markets and a range of customer needs; from small bookshops with an integrated newsstand to medium and large-scale bookstores and multicenters (which extend the offering from books to technology).
Launched in 2010, the “Mondadori Card” had, by the end of the year, reached almost 180,000 holders; and in 2011 other loyalty and CRM activities are planned.
2010 also saw the launch of “Emporio Mondadori”, an exclusive line of stationery products and accessories with the Mondadori brand.
A versatile project aimed at giving shape and style to thoughts and ideas, a world of daily objects that combine tradition and quality, with the Mondadori name and the appeal of contemporary design.
Mondadori Franchising SpA
Market interest in this important affiliation formula saw the network expand also in 2010, with the significant increase in the number of outlets, now 280 bookshops and 205 Edicolè, giving Mondadori the largest number of outlets in the Italian publishing market.
2010 was therefore a year of growth (+10%) for the network (66 new openings during the year).
Moreover, there were also important efforts to reinforce logistics and the central structure in Rimini in preparation for the big developments foreseen for the coming years.
Mondadori Retail SpA
At the end of 2010 the number of outlets came to 23 bookshops and 9 multicenters, following the opening of a new store in Via Marconi and the consequent closure of two other outlets in Rome (one of which will join the franchising network during 2011).
Over the year, the first half was tougher than the second, where there were some signs of recovery (in particular in the month of December).
Efforts continued to improve productivity, with a view to offsetting the impact of a decline in sales on the company’s income statement.