Point Group

·         After four quarters of 2008, net profit of the parent company amounted to PLN 6,984,000. This result was achieved owing to, among others, increased sales of PMPG SA’s subsidiaries, especially of BTL Point Group as well as Media Works and BMS acquired in Q2 2008. These results have confirmed that the Group has chosen proper direction of development and its activity constitutes the source of rapid profit growth.

·         Sale of advertisements remains the main source of income of PMPG SA Capital Group. Media Point Group sp. z o.o., PMPG SA’s subsidiary and the publisher of magazines such as “Machina” and “Film”, despite rather difficult situation on the press market in the fourth quarter, recorded income growth of 3%.

·         Compared to results after four quarters of 2007, BTL Point Group sp. z o.o., PMPG’s subsidiary operating on the market of advertising agencies recorded an increase by nearly 45%. BTL, as an agency offering full range of marketing communications services, continues to extend its portfolio of customers and generates increasing profit from operations on the fast growing market of events.

·         Revenues of GEMTEXT printing house have increased by 40% in comparison to four quarters of 2007, amounting to 4,782,000 PLN. GEMTEXT printing house has completed the first stage of modernization and right now it is one of the most well-equipped medium printing houses in the Warsaw area. From Q4 2008, PMPG SA is the sole owner of the company.

·         Revenues of AdMobile, mobile marketing agency 100% owned by Platforma Mediowa Point Group, have increased by 20 per cent. AdMobile’s offer covers comprehensive competition and lottery services, fulfilment services, “push/pull” (SMS, MMS, IVR, WAP) campaigns, database construction and management, premium SMS services, Bluetooth marketing services, 2D mCoupons, interactive mega boards, technological outsourcing solutions, and many more. 

·         Results of companies acquired at the end of Q2 2008, that is Media Works Group and BMS, also considerably affect PMPG’s results – revenues of these companies amounted to 7,655,000 PLN and 6,216,000 PLN respectively.

·         Revenues from sporting and sports marketing activities conducted by PMPG’s subsidiary, Sport24.pl sp. z o.o., have increased as well. After four quarters of 2008, revenues of Sport24.pl have grown by 135 per cent in comparison to results after three quarters of this year. 

After four quarters, PMPG SA results are lower than anticipated in forecasts presented in March 2008, however they are within the allowed deviation of +/- 10 per cent. According to the forecasts, company revenues were to amount to PLN 77 million, and gross profit to PLN 8.8 million.

“Results after four quarters have shown that the strategy of Platforma Mediowa Point Group was strongly based on economic account, financial analysis and company resources. They are only slightly lower than forecasts published at the beginning of 2008, yet it should be remembered that these forecasts anticipated conducting and closing the issue in Q1 2008. Meanwhile, the issue encountered a difficult period on the market and was prolonged until the half of Q3. This resulted in, among others, delays in implementation of new projects, which of course must have affected the results. However, it should be noted that despite difficult period for the press market which so far has been our key market, PMPG maintains the increasing trend” – commented Michał M. Lisiecki, President of Platforma Mediowa Point Group. The company maintains its optimistic forecasts regarding 2009 results, he adds.

PMPG SA’s President emphasizes that the company continues its phase of dynamic growth. He draws attention to the structure of the Group which enables the company to provide an increasing range of marketing communications services, and at the same time, by using the synergy effect between Group members, it may optimize costs and diversify its offer for customers. “This enabled us to maintain the growing trend" - says Lisiecki.

PMPG SA President points to acquisitions and strategic investments planned for 2009. “We are looking for projects that will allow us to become one of few really big players” – he says, reminding about involvement of the company in the privatization of Przedsiębiorstwo Wydawnicze “Rzeczpospolita”. Also, he finds it possible to get involved in other projects in the media and marketing communications market. 

As at March 21, 2009, PMPG SA will be added to the composition of sWIG-80 index.

Important events in PMPG Capital Group in Q4 2008:

PMPG SA’s involvement in privatization of PW Rzeczpospolita

In October, Management Board of Platforma Mediowa Point Group passed a resolution on establishment of a special purpose vehicle, Point Group – Rzeczpospolita sp. z o.o. whose task has been the preparation of the acquisition transaction regarding shares in PW Rzeczpospolita, holder of, among others, 49% of shares in Presspublica, the publisher of “Rzeczpospolita”, “Parkiet” and “Życie Warszawy” dailies. At the same time, PMPG resubmitted the letter to the Ministry of Treasury, Aleksander Grad, in which it confirmed its willingness to acquire shares in PW Rzeczpospolita, declared already in 2007. Point Group Rzeczpospolita was registered at the beginning of December 2008. On December 31, 2008, PMPG SA submitted to the Ministry of Treasury an opening bid related to the acquisition of shares in PW “Rzeczpospolita” and was added to the list of four entities allowed to conduct due diligence of PWR. The deadline for submitting the bid is March 18, 2009.

Previously, that is on December 15, 2008, the Extraordinary General Shareholders’ Meeting of Platforma Mediowa Point Group SA decided to issue 500 convertible bonds and new shares. The issue of shares and bonds is addressed to qualified investors, that is financial institutions, TFI (fund managers), OFE (open pension funds), private equity funds and banks. Its purpose is the acquisition of funds for the purchase of “Rzeczpospolita”.

PMPG holds rights to OZON and Tygodnik OZON trademarks

In October 2008, PMPG SA was informed about registration in the Polish Patent Office of “OZON” and “Tygodnik OZON” trademarks and was granted the relevant trademark rights. Thus, PMPG became the holder of rights to one of most recognizable brands among Polish opinion-forming magazines. Trademark registration enabled PMPG to finally use the OZON brand in its own media projects. The use of the OZON brand was provided for in the company prospectus.

PMPG SA became strategic shareholder of 3P Holding SA

In December 2008, PMPG SA signed an agreement and, subsequently, concluded an investment contract with 3P Holding S.A. (3PH), owner of 3P Inwestycje Internetowe (3PII). Under the agreement, PMPG initially gained the right to hold 37.5% of 3PH capital, and under a five-year redemption plan – to increase its share to up to 100% of company’s equity. Companies from 3P Holding S.A. Capital Group operate on the international internet market, mainly in the area of affiliate programs for the pharmaceutical industry and casinos. Company’s income is generated mostly abroad, on the European and American markets. Tools and technologies enabling acquisition of Internet traffic by using SEO and SEM mechanisms, comprise significant assets of 3PH Capital Group.

Interactive agency in PMPG Group