This post was written by Morten Lund

Berlingske Media lost DKK 78 million

I have been trough hell this summer with Nyhedsavisen – because media is writing about media with a passion that very much surpases the size of the company. And today something significant happened – and NO PAPER TOOK IT UP – no one chose to write about it.


Berlingske Media lost DKK 78 million in first half of 2008 and has launched into a down-ward death spiral!!

Im NOT HAPPY ABOUT OTHERS PROBLEMS – but someone needs to publish it – Borsen, Berlingske and JP did not..

After months of nothing but EVIL spin about Nyhedsavisen, it seems very strange (but of course predictable) that NO-ONE is writing about how serious the situation is for Berlingske Media as they are loosing money BIG TIME and fighting for its life with its parent group up to its neck with debt.

Here are the numbers for Berlingske that were announced today:

For new readers beware that ”exceptional items” is accounting language for BULLSHIT. Reducing staff and restructuring the organization are REAL cost of running a business in a down-turn and next year there will just be new “exceptional items”.

If you want to see how AMAZINGLY small a font “exceptional items” can be written in, see their presentation and accountson www.mecom.co.uk/investors (do they think small fonts make the problem go away?)

On top of this they will BULLSHIT even more with long talks about online growth when in fact only 5% of total revenue comes from online (90m versus 1.7 billion of newspaper revenue) – FUCK ALL and does not in ANYWAY compensate for the 13% loss in advertising revenue they had just in first half of 2008.

Furthermore, the loss of DKK 78 million is before interest so the parent Mecom has to crack the whip in other countries in order to service their DKK 6 BILLION DEBT! Bankers are knocking on the board room door as we speak as the terms state that the loan cannot exceed 3.5 times the group earnings (EBITDA). And this is not your standard bank overdraft – if you breach the terms you are TOAST!

Nyhedsavisen is squeezing Berlingske on EVERY FRONT and anyone who has spent 5 MINUTES in the newspaper business knows that you CANNOT staff cut your way out of a seriously accelerating advertising loss.

All in all – Berlingske is going DOWN!!

Of course this should also be of interest to JP/Politiken as there business completely mirrors Berlingske’s challenges with only ONE exception: they haven’t really started firing people yet!! Luckily, employees on JP/Politiken have a BOOMING job section in Nyhedsavisen to look forward to!!

And while I’m at it, why is no-one writing about the Metro BULLSHIT about 16% double coverage of Metro and 24 Timer when it is in fact 44%!! How can anyone be in ANY DOUBT that their business concept is so obviously thrown together using the exact same calculators the management used to DESTROY TV2 with!!

LONG LIVE NYHEDSAVISEN !!

  • http://www.easn.de Andreas Gerads

    You are a crazy writer Morten – I like your style.Your postings are always pure happiness for my rss-reader ;)

  • http://www.djh.dk/ejour Helle Nissen Kruuse
  • mik

    Hahahahaha… Psycho!

  • Kristian E

    This is going to be interesting :)
    I receive three newspapers – Børsen, Berlingske and nyhedsavisen, but still read most of my news online – blogs, rss, specified news sites, aggregators like news.google.com, popurls etc. and in 5 years, I will probably read news online together with the surviving free newspaper….
    Let’s see what the papers write tomorrow… :)

  • Jesper

    Morten.. time i changing the world…

    I saw a video with Morten, a guy from Fyens whatever newspaper and a few other persons in a discussion about newspapers around 2-3 years ago.

    Morten Lund was invited as the IT-investor strange guy..thing.. and when he was asked “What would you do Morten if you had such a …” and then Morten prompt replied .. “I would newer invest in a newspaper” or similar type of reply…

    Whatever… life is changing and maybe Morten is operating Berlingske Media tomorrow. :) Let´s see how this strange dude with red shoes will rock this oldschool business.

    Btw: I saw you on a cafe around 2 months ago sitting in army pants and relaxed.. I would like to know if anyone know if the guys from Berlingske also have such dress when the come to meetings ?.

  • http://www.retouch.dk Johan

    Interesting times ahead :=)

    Power to the people! Free us from corporate bull..

  • http://www.photosheikh.com tariq sheikh

    LONG LIVE NYHEDSAVISEN !!

    you a crazy mofo Morten! See you in Dubai in Jan at Greentech

  • Pingback: MB » Blog Archive » Mind your own business

  • http://www.glassesdirect.co.uk Jamie Murray Wells

    I know nothing about this Denmark industry but I love this

  • Mads

    “Long live NYHEDSAVISEN”

    http://www.berlingske.dk/article/20080831/danmark/80831024/

    ???

    What happened?

  • http://marks.dk Mark Jensen

    Long life? Nary – they shut it down today, so this post just became pretty comical…

  • Lars

    Seems like you been to busy with looking over the shoulders and into the problems of your competitors, than saving your own newspaper company.

    Try again Morten, try again…

  • Andre

    Ufatteligt, så usammenhængende og amatøragtigt dette er skrevet.

    Det bliver jo så ikke bedre af, at dine udtalelser om, at “enhver der har været fem minutter i avisbranchen kan se at Berlingske ikke kan klare sig” bliver sat i relief af at din “gratisavis, der aldeles ikke var en gratisavis, men en avis, der var gratis”, i dag er lukket og slukket.
    Dine fem minutter i avisbranchen var åbenbart ikke nok.

    Helt seriøst, så er jeg forundret over, hvor dårligt skrevet og ufunderet denne blog er, men det hænger jo fint sammen med, at du forsøgte at “købe” (aktie for aktie, lol) metroXpress via SMS’er.

  • morten

    maybe you’re right about berlingske but you wen’t down before them :) RIP

  • Jacob Ledin

    Et godt råd, Morten: Folk er begyndt at tale om denne her side. Stop, før du bliver helt til grin.

  • Mike Jensen

    Isn’t it a bit weird that you – who just made a newspaper crash and burn – writes a blog entry like that? It seems rather hypocritical to me…

  • Læseren

    How interesting, Morten. Berlinske got +250 years of experience and can take a loss and live on. You can’t, obviously. Very very bad style!

  • Jan Petersen

    Why do you find it so important whether or not the story was “printed on paper” – in old media? And so what if they lost a bunch of millions – large firms loose and win every day… That is not the issue. The issue is who wins in the long run..

  • http://www.djh.dk/ejour/ Helle Nissen Kruuse

    Se under L (Lund) i eJours netop opdaterede medie-citater

    http://www.djh.dk/ejour/arkiv/Citater.html

    vh Helle

  • http://www.cough.com Joe Bloggs

    hello

  • http://www.lundxy.com Morten Lund

    LONG LIVE NYHEDSAVISEN !! i fucked it up….i love to lose!!!

  • Poul Erik

    Morten
    You are still a great inspiration.
    You are a good man, and I know you are also a great business man.
    Remember, people who don’t take risk, accomplice nothing.

    Best of Luck.

  • David

    The heartbreaking honesty of this post is very compelling. I wish you and your family a lot of good luck through a difficult time. But I harbor no doubt that you’ll be back on top in a short time.

    Onward.

  • Tom Lange

    A very honesty appearance on DR last night. Obviously some wrong decisions has been taken, but track record indicate clear hope for the future. I wish you and your family best of luck through the coming months.

  • Lasse

    Kom dog videre, Morten. Vi ved alle, hvor svært mediebranchen har det, hvor langt bagude de er (alting rykker sig – ingen ved, hvad og hvem der sætter dagsordenen om 2 eller 5 år), men med ovenstående indlæg fremstår du som en PMS’ende, tøsefornærmet teenagetøs på crack. Det klæder ingen – og da slet ikke en voksen mand.

    Avisbranchen har altid været benhård og små-naiv, som du var, blev du kørt rundt i manegen. Face it, kom videre… That’s life and business. We live and learn.

    Gør det du er god til. At netværke og sparke døre ind – måske med lidt bedre risikostyring i fremtiden – og bedre fornemmelse for hvad/hvem du står overfor.

  • mortenlund

    God pointe.