For those of you who have any doubt about what drives our business and its relationship with its markets, you would have done well to come to the Central Banking Publications (CBP) 20th anniversary drinks reception at the Reform Club last night.

It was remarkable to see some of the world's leading central bankers gathered together to pay their respects to each of Robert Pringle (CBP's founder), the current team and, as importantly, the Central Banking Journal itself.

I was struck by the genuine respect and authority that CBP commands and the affection the community has for it.  This is clearly a reflection of the values that Robert has instilled in the title since its launch.  The guest of honour was Jacques de Larosière.

Jacques de Larosière was a former managing director of the International Monetary Fund (IMF) from 1978 to 1987, and governor of the Banque de France from 1987 to 1993. More recently, he chaired a group that wrote an influential report for the European Commission on how the European regulatory framework should be revised following the financial crisis.  It was wonderful to hear Jacques speak so fondly of how he looks forward to every edition, but also how he has used CBP as reference material to help steer policy.  That could well have been enough and certainly was enough at that time to make me proud to be part of the team.

What came next was just fantastic and I thought I had to share it with you all.  Mervyn King, who as the Governor of the Bank of England is a pretty important man and also a man who clearly would have had plenty on his mind given it was Budget day, made the effort to come to the party but also wanted to share a few words with us.  Governor King stood at the microphone, without notes, and talked with great affection and enthusiasm as to how he genuinely looks forward to receiving the Central Banking Journal, and that it is packed with news but more importantly thought provoking discursive opinion which he and his team find invaluable in their day jobs. Mervyn King then praised the integrity, enthusiasm and expertise of the team. He said central bankers are often overwhelmed with paper, but whenever the Central Banking Journal arrived on the desk he would always take time to read it. He thanked Robert and the team for the contribution Central Banking had made over the past 20 years.

So, King confirms "Content is king".

The trouble with identifying what makes good content and drawing a roadmap is that "good content" is subjective. It's almost less about the content you create and more about who's reading it and their needs. That's why it is so important we get close to our audiences, get to know them and ensure that what we deliver is of value. Well done CBP and Robert on your first 20 years, I look forward to the next with great confidence.

Tim

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Posted by Tim Weller at 10:36 AM | Permalink | Comments (0)

Having spent a year working on the successful financial restructuring of the business, with the last three months being particularly intense, I'm pleased to be able to focus again on our core business and spend more time with each of the divisions. The restructuring has been an extraordinary process that has taken an enormous amount of time but the result is positive for the company.

Following the completion of the restructuring, Incisive Media has a stronger balance sheet enabling us to look ahead with confidence and giving us a sound platform to create an exciting future for everyone connected with the business. As part of the restructuring, and in return for the conversion of debt to equity, the current senior lenders have become the majority owners of the business. Their continuing support demonstrates the confidence they have in the value of Incisive Media and their belief that Incisive Media is a terrific company with great people and products and a tremendous future ahead of it.  They understand that the business, while impacted by the most severe economic downturn in a generation, remains fundamentally strong and entrepreneurial with leading brands and a proven strategy of delivering its content across multiple channels.  

I was also delighted to be able to announce that Helen Alexander has joined the board as independent non-executive chairman. Helen has a tremendous background in publishing and has an enviable track record. I am really looking forward to working with her as we continue to evolve the business. Helen and I are looking to appoint one more independent non executive director and we have already begun to put a shortlist together. I hope to make a further announcement in due course.
 
B2B is at a crossroads
Last September, following the collapse of Lehman Brothers, multiples for listed B2B businesses fell to a 20 year low of just 6.0 times EBITDA. As we have seen in the recent set of listed company results it is clear that their revenues and profits have fallen significantly too. The impact of falling profits and the depressed ratings has meant that most B2B companies are valued at 1/3rd of what they were in 2007.
 
The B2B sector is at a crossroads.  While we have experienced disruption and structural change over the last few years, there have been numerous positive drivers in our sector, particularly the development of event and online businesses from print-based brands. This diversification and "surround" strategy has reinforced barriers to entry and generated incremental revenues and profit at higher margins. The use of these different platforms has allowed us to develop close and dynamic relationships with both buyers and sellers and to become even more central to the success of our customers, helping us  maintain our first-mover advantage in the communities we serve.

Branded content and established brands matter more than ever; they stand out from the market noise, representing authority, trust and integrity. And, quality journalism represents a greater barrier to entry today, regardless of platforms and technological innovations.

The economic downturn we have been through is the worst any of us has experienced or will likely experience in our lifetime.  Though the B2B sector is heterogeneous and the underlying performance of B2B companies is more closely tied to the sub-sectors they serve than the wider economy, I don't know of a single B2B business that hasn't seen its underlying revenues fall.

The downturn has, however, brought out the best in us, both as individuals and as a business as we have had to focus on our core strengths. We have not been beaten down by the economy but have used it as an opportunity to reposition our company for future growth. 2009 was a year in which we had to stabilise the business and revitalise it in order to position it for growth in the future.

Key questions we should be asking
So what should we focus on in the days ahead to maintain our competitive edge and drive increased value? Here are some of the key questions we should be asking ourselves to ensure we revitalise our brands and set the business up for growth.

1. How do we transfer the success stories from one division to another?
Is the company organised in a way that enables sharing of best practice across the group and are we able to identify and capture group synergies that can help diversify our revenue streams away from advertising and other cyclical revenues?  Can we improve the international penetration of publications that are capable of travelling abroad?  Have we established internal processes and forums that enable us to share strategic insights and success stories?

2. How do we energise the transition to online models on the web and mobile?
Have we identified those verticals and customer segments where traditional revenue streams are under pressure and an online transition is imperative, now and in the next 2-5 years? What management and resources are required to accelerate this transition? Have we identified the key elements of a successful online business model?  Have we allocated resources to highest potential opportunities?  How do we take advantage of smart phone technology and have we developed a mobile strategy?

3. How do we move our subscription model from One-to-One to One-to-Many?
How do we transition our newsletters online?  How do we test a subscription model for the desktop so that we can sell site licences and test each marketplace we serve? Are we delivering unique and "need to have" content that is valuable?

4. Have we prioritised entry into new areas?
Can we grow or expand any of our current brands into data businesses?  Is there information that our readers need that we do not currently provide but that we ought to try to provide? In which verticals and customer groups are we likely to find the most new data business opportunities? Since traditional media businesses are often weaker at identifying and executing new data business opportunities, are there areas that require group-level intervention?

5. Have we optimised our existing portfolio of brands?
Are underlying market fundamentals deteriorating in any of our verticals and customer segments?  Are we busy generating revenues with little or no margin? Have we developed a pricing strategy that delivers increased yield in user revenues and marketing spend? What products should we consider re-launching or changing format or delivery medium? In what areas do we have additional pricing leverage?  How do we capture this opportunity?

The next couple of years are going to continue to be challenging and exciting for all those who work at Incisive Media. Let's continue to revitalise our brands and business models and build further on the leading market positions we hold.  I want to encourage you to be experimental, to continue to innovate, to kick-start change and importantly to share your experiences (the good, the bad and the ugly) with your peers across the group. I know we will excel - there is no business more creative or innovative than ours and look forward to the future with confidence as I hope you do to.

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Posted by Tim Weller at 12:09 PM | Permalink | Comments (1)