Upholding the 4th estate—exploring the corporate governance of the media ownership form of business foundations

Figures & data

Table 1. Largest owners in the Swedish newspaper market 2015.

Group	Main owner	Revenues (MSEK)	Rev. growth 2014/2015	Ownership
Bonnier	Bonnier Family	5,021	0.6	Family
Stampen Media Group	Hjörne Family	3,619	−20.1	Family
Schibsted	Tinius Foundation (26)/Institutional investors/NWT Group	2,855	−3.4	Foundation/Publicly listed
MittMedia Group	Gefle Dagblad Foundation (70)	2,090	44.6	Foundation
NTM Group	Erik & Asta Sundin Foundation (77,7)	1,810	−2.9	Foundation
Gota Media Group	Barometern Foundation, Tore G Wärenstam Foundation	1,109	−0.3	Foundation
Hallpressen	Hamrin Family	599	−6.3	Family
NWT Group	Ander Family	508	−30.3	Family

Source: Medieekonomi 2016, Myndigheten för Press, Radio och TV

Table 2. Market share development 2004–2014, eight largest newspaper owners.

	Share of market (%)
	2004	2009	2014
The Bonnier Group	27.0	25.9	25.4
Stampen Media Group	7.0	16.1	16.2
Schibsted (Norway)	16.4	16.2	12.7
Gota Media	4.9	5.5	9.3
Mittmedia	4.3	8.1	8.4
NTM Group	3.2	7.3	8.4
NWT Group	6.1	6.4	5.0
Hallpressen	3.5	3.6	3.8
Others	27.6	10.9	10.8

Source: Lucchi, Ots, and Ohlsson (2017)

Table 3. Gota Media AB.

Key financials and employees
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200	0.10592
Operating revenue (Turnover)	1,21,169	1,19,023	1,29,216	1,43,612	1,17,859	99,082	80,835	79,738	90,635
P/L before tax	1,628	−8,739	1,265	513	11,327	14,222	8,272	581	14,169
P/L for period [= Net Income]	−14	−10,012	146	488	7,947	10,470	6,196	359	9,970
Cash flow	7,648	8,229	5,719	6,549	12,386	14,412	9,718	3,698	13,993
Total assets	1,36,718	1,44,738	1,62,760	1,71,436	1,66,939	1,43,032	1,20,336	1,14,061	1,31,451
Shareholders funds	86,481	85,419	1,04,123	1,07,979	1,04,194	98,627	82,612	74,781	86,303
Current ratio (x)	2.75	2.43	2.78	2.65	2.20	3.88	3.79	3.82	3.79
Profit margin (%)	1.34	−7.34	0.98	0.36	9.61	14.35	10.23	0.73	15.63
ROE using P/L before tax (%)	1.88	−10.23	1.22	0.48	10.87	14.42	10.01	0.78	16.42
ROCE using P/L before tax (%)	2.13	−8.23	1.11	0.58	9.32	12.37	8.74	1.44	13.78
Solvency ratio (Asset based) (%)	63.26	59.02	63.97	62.99	62.41	68.96	68.65	65.56	65.65
Number of employees	777	814	860	979	777	642	589	623	633
Global standard format
Balance sheet
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200	0.10592
Assets
Fixed assets	43,663	49,530	63,906	68,927	73,640	38,647	35,438	37,452	44,024
- Intangible fixed assets	8,683	7,792	27,325	30,148	30,009	820	574	29	0
- Tangible fixed assets	23,330	26,997	27,540	31,552	35,715	31,758	31,276	31,912	39,160
- Other fixed assets	11,651	14,741	9,041	7,227	7,916	6,069	3,58	75,512	4,864
Current assets	93,055	95,208	98,854	1,02,509	93,299	1,04,386	84,898	76,608	87,427
- Stock	266	274	298	388	331	489	335	330	329
- Debtors	6,898	7,576	7,444	9,354	10,120	6,689	4,984	3,837	5,746
- Other current assets	85,891	87,357	91,112	92,767	82,849	97,207	79,580	72,442	81,352
* Cash & cash equivalent	3,339	3,385	4,128	9,199	6,960	11,819	8,408	9,741	9,360
TOTAL ASSETS	1,36,718	1,44,738	1,62,760	1,71,436	1,66,939	1,43,032	1,20,336	1,14,061	1,31,451
Liabilities and equity
Shareholders funds	86,481	85,419	1,04,123	1,07,979	1,04,194	98,627	82,612	74,781	86,303
- Capital	3,265	3,194	3,386	3,496	3,366	3,344	2,926	2,760	3,177
- Other shareholders funds	83,216	82,225	1,00,736	1,04,484	1,00,827	95,283	79,686	72,021	83,125
Non-current liabilities	16,357	20,051	23,127	24,711	20,279	17,510	15,341	19,220	22,064
- Long-term debt	3,886	4,881	6,257	7,537	8,258	9,129	8,804	13,638	16,518
- Other non-current liabilities	12,471	15,170	16,870	17,174	12,021	8,382	6,537	5,582	5,546
* Provisions	12,013	14,498	15,920	15,926	10,841	8,372	6,537	5,582	5,546
Current liabilities	33,880	39,267	35,510	38,746	42,466	26,895	22,382	20,061	23,084
- Loans	1,311	1,244	1,044	1,039	1,088	923	779	709	787
- Creditors	2,573	3,521	3,638	7,182	7,897	3,860	2,685	3,004	3,019
- Other current liabilities	29,997	34,502	30,828	30,525	33,482	22,112	18,918	16,347	19,278
TOTAL SHAREH. FUNDS & LIAB.	1,36,718	1,44,738	1,62,760	1,71,436	1,66,939	1,43,032	1,20,336	1,14,061	1,31,451
Memo lines
Working capital	4,591	4,329	4,104	2,560	2,554	3,318	2,634	1,163	3,056
Net current assets	59,175	55,940	63,344	63,763	50,833	77,491	62,516	56,548	64,343
Enterprise value	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Number of employees	777	814	860	979	777	642	589	623	633
Profit and loss account
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200	0.10592
Operating revenue (Turnover)	1,21,169	1,19,023	1,29,216	1,43,612	1,17,859	99,082	80,835	79,738	90,635
- Sales	1,16,911	1,16,714	1,27,969	1,41,991	1,15,772	97,060	79,006	78,106	89,929
Costs of goods sold	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Gross profit	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Other operating expenses	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Operating P/L [=EBIT]	−1,322	−12,744	−3,880	−2,445	8,792	10,762	3,280	5,187	10,320
- Financial revenue	4,254	4,380	5,286	3,208	2,802	3,606	5,285	1,915	4,616
- Financial expenses	1,304	375	142	250	267	145	292	6,522	767
Financial P/L	2,950	4,005	5,144	2,958	2,536	3,460	4,992	–4,606	3,849
P/L before tax	1,628	−8,739	1,265	513	11,327	14,222	8,272	581	14,169
Taxation	1,642	1,273	1,119	25	3,380	3,752	2,077	222	4,198
P/L after tax	−14	−10,012	146	488	7,947	10,470	6,196	359	9,970
- Extr. and other revenue	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	0	0	0
- Extr. and other expenses	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	0	0	0
Extr. and other P/L	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	0	0	0
P/L for period [=Net income]	−14	−10,012	146	488	7,947	10,470	6,196	359	9,970
Memo lines
Export revenue	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Material costs	15,982	18,141	21,787	27,575	20,628	17,031	n.a.	n.a.	n.a.
Costs of employees	53,225	50,860	58,955	60,586	44,541	37,240	33,101	31,007	33,755
Depreciation & Amortization	7,662	18,241	5,574	6,060	4,439	3,942	3,52	23,339	4,023
Research & Development expenses	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Other operating items	45,621	44,526	46,780	51,836	n.a.		n.a.	n.a.	n.a.
Interest paid	564	56	142	250	267	145	292	769	767
Cash flow	7,648	8,229	5,719	6,549	12,386	14,412	9,718	3,698	13,993
Added value	63,079	60,418	65,935	67,409	60,575	55,550	45,188	35,696	52,713
EBITDA	6,340	5,497	1,694	3,616	13,231	14,704	6,803	8,527	14,343
Global ratios
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200	0.10592
Profitability ratios
ROE using P/L before tax (%)	1.88	−10.23	1.22	0.48	10.87	14.42	10.01	0.78	16.42
ROCE using P/L before tax (%)	2.13	−8.23	1.11	0.58	9.32	12.37	8.74	1.44	13.78
ROA using P/L before tax (%)	1.19	−6.04	0.78	0.30	6.79	9.94	6.87	0.51	10.78
ROE using Net income (%)	−0.02	−11.72	0.14	0.45	7.63	10.62	7.50	0.48	11.55
ROCE using Net income (%)	0.54	−9.44	0.23	0.56	6.60	9.14	6.62	1.20	9.91
ROA using Net income (%)	−0.01	−6.92	0.09	0.29	4.76	7.32	5.15	0.32	7.59
Profit margin (%)	1.34	−7.34	0.98	0.36	9.61	14.35	10.23	0.73	15.63
Gross Margin (%)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
EBITDA Margin (%)	5.23	4.62	1.31	2.52	11.23	14.84	8.42	10.69	15.83
EBIT Margin (%)	−1.09	−10.71	−3.00	−1.70	7.46	10.86	4.06	6.51	11.39
Cash flow/Operating revenue (%)	6.31	6.91	4.43	4.56	10.51	14.55	12.02	4.64	15.44
Enterprise value/EBITDA (x)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Operational ratios
Net assets turnover (x)	1.18	1.13	1.01	1.08	0.95	0.85	0.83	0.85	0.84
Interest cover (x)	−2.34	n.s.	−27.34	−9.80	32.98	73.98	11.22	6.75	13.45
Stock turnover (x)	455.97	434.17	432.95	369.78	356.06	202.47	241.54	241.91	275.51
Collection period (days)	20	23	21	23	31	24	22	17	23
Credit period (days)	8	11	10	18	24	14	12	14	12
Export revenue/Operating revenue (%)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
R&D expenses/Operating revenue (%)	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Structure ratios
Current ratio (x)	2.75	2.43	2.78	2.65	2.20	3.88	3.79	3.82	3.79
Liquidity ratio (x)	2.74	2.42	2.78	2.64	2.19	3.86	3.78	3.80	3.77
Shareholders liquidity ratio (x)	5.29	4.26	4.50	4.37	5.14	5.63	5.39	3.89	3.91
Solvency ratio (Asset based) (%)	63.26	59.02	63.97	62.99	62.41	68.96	68.65	65.56	65.65
Solvency ratio (Liability based) (%)	n.s.	n.s.	n.s.	n.s.	n.s.	n.s.	n.a.	n.a.	n.a.
Gearing (%)	20.43	24.93	23.21	23.85	20.51	18.69	19.51	26.65	26.48
Per employee ratios
Profit per employee (th.)	2	−11	1	1	15	22	14	1	22
Operating revenue per employee (th.)	156	146	150	147	152	154	137	128	143
Costs of employees/Operating revenue (%)	43.93	42.73	45.63	42.19	37.79	37.59	40.95	38.89	37.24
Average cost of employee (th.)	69	62	69	62	57	58	56	50	53
Shareholders funds per employee (th.)	111	105	121	110	134	154	140	120	136
Working capital per employee (th.)	6	5	5	3	3	5	4	2	5
Total assets per employee (th.)	176	178	189	175	215	223	204	183	208

Table 4. MittMedia Förvaltnings AB.

Key financials and employees	No of recorded shareholders				1
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008	31/12/2007
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200	0.10592
Operating revenue (Turnover)	2,27,427	1,53,886	1,63,660	1,79,147	1,83,375	1,81,748	1,55,924	1,53,622	1,45,676
P/L before tax	5,541	5,200	−23,768	8,153	−3,660	5,768	28	6,814	39,176
P/L for period [= Net Income]	3,736	3,655	−22,640	5,524	−5,952	3,683	− 1,090	5,339	36,335
Cash flow	20,609	8,918	−12,553	16,176	10,911	13,132	7,751	14,164	43,528
Total assets	1,77,626	1,28,782	1,51,368	1,78,285	1,80,963	1,89,664	1,63,920	1,69,723	1,47,953
Shareholders funds	71,536	58,969	64,320	90,396	92,861	98,725	83,793	80,553	87,034
Current ratio (x)	0.46	0.41	0.44	0.46	0.40	0.43	0.46	0.60	0.63
Profit margin (%)	2.44	3.38	−14.52	4.55	−2.00	3.17	0.02	4.44	26.89
ROE using P/L before tax (%)	7.75	8.82	−36.95	9.02	−3.94	5.84	0.03	8.46	45.01
ROCE using P/L before tax (%)	6.76	8.22	−26.85	7.58	−2.08	5.10	0.71	7.35	39.33
Solvency ratio (Asset based) (%)	40.27	45.79	42.49	50.70	51.32	52.05	51.12	47.46	58.83
Number of employees	1,771	974	1,055	1,330	1,869	1,888	1,773	1,731	1,483

Source: Amadeus database, compiled December 26, 2017

Table 5. Norrköpings Tidningars Media AB.

Key financials and employees
Consolidated	31/12/2015	31/12/2014	31/12/2013	31/12/2012	31/12/2011	31/12/2010	31/12/2009	31/12/2008
	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR	th EUR
	12 months	12 months	12 months	12 months	12 months	12 months	12 months	12 months
	Local GAAP	Local GAAP	Local GAAP	Local GAAP	Local GAAp	Local GAAP	Local GAAP	Local GAAP
Exchange rate: SEK/EUR	0.10882	0.10646	0.11288	0.11652	0.11221	0.11148	0.09754	0.09200
Operating revenue (Turnover)	1,96,951	1,98,552	2,05,507	2,13,963	2,03,308	1,95,870	1,17,720	77,064
P/L before tax	−8,551	−6,603	6,228	6,550	9,515	9,348	2,897	−1,800
P/L for period [= Net Income]	−8,523	−7,150	4,317	6,743	5,707	5,937	1,205	−2,895
Cash flow	9,374	11,784	19,074	21,441	18,931	18,469	10,758	2,891
Total assets	2,07,274	2,25,445	2,81,409	2,82,612	2,64,884	2,53,667	1,78,331	1,70,925
Shareholders funds	1,14,491	1,23,553	1,72,054	1,80,728	1,74,446	1,75,060	1,27,674	1,22,397
Current ratio (x)	2.19	1.92	1.67	2.14	1.65	1.92	1.78	1.60
Profit margin (%)	−4.34	−3.33	3.03	3.06	4.68	4.77	2.46	−2.34
ROE using P/L before tax (%)	−7.47	−5.35	3.62	3.62	5.45	5.34	2.27	−1.47
ROCE using P/L before tax (%)	−5.49	−3.78	3.48	3.25	4.87	4.88	2.16	−0.49
Solvency ratio (Asset based) (%)	55.24	54.80	61.14	63.95	65.86	69.01	71.59	71.61
Number of employees	1,390	1,464	1,458	1,463	1,514	1,494	1,077	890

Source: Amadeus database, compiled December 26, 2017

Lucchi, N., Ots, M., & Ohlsson, J. (2017). Innovation policies in Sweden. In H. van Kranenburg (Ed.), Innovation policies in the European news media industry (pp. 191–203). Heidelberg, Germany: Springer.

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