Figures for consumer spending in the first two months of 2011, in the markets of reference for Mondadori, indicate little sign of improvement over the year. Indeed there are no signs of a change in current trends or visibility, even in the short term.
Regarding the main business areas:
- for magazines, the timid signs of a recovery in advertising investments currently make it possible to be reasonably optimistic in terms of a recovery in revenues, thanks to the strength of the portfolio of titles both in Italy and France and the constant commitment to the quality of the offer;
- the trade books area can count on a strong editorial programme, while Mondadori will retain a strong commitment to the development of e-books;
- over the year the maximum focus will be on digital activities, both in interaction with all of the Group’s other activities, and in the development of new businesses, also linked to editorial content, the brands and Mondadori’s communities.
The reorganisation plans already underway will continue during the year, along with the efforts to contain operational costs that have to date allowed the Group to recover profitability, despite very tough trading conditions.
In the light of this, it is estimated that Mondadori will be able to improve both its revenues and operating profit in 2011 through its determined commitment to the development of digital activities: some caution is, however, necessary, given the level of ongoing economic instability, sharpened recently by international tensions that could have a negative impact on the still weak recovery underway.