Salon Press, ID

IDES "Salon Press" is one of the largest publishing houses in the Russian market of the interior press.

Assets

For 2013 issues seven magazines, including:

• the Idei Vashego Doma magazine is the most popular edition focused on mass audience
• the Salon-interior magazine - the leader among interior editions in a premium segment,
• Domus,
• "Room answer to a housing problem",
• "New house"

also develops profile Internet resources.

Performance Indicators

2013

For the first half of the year 2013 revenues of ID "Salon Press" decreased by 4% up to 242 million rubles. Advertizing revenues of all federal interior editions in the first half of the year decreased, according to the analytical center "Video international" (ACVI), by 1% up to 453 million rubles excluding VAT.

2012: Net profit - 89 million rub

From six divisions of RBC at the end of 2012 only three including ID "Salon press" were profitable. At revenue in 548 million rubles its net profit equaled 89 million rubles.

On total audience of magazines, according to TNS Russia, in May-October, 2012. "Salon press" takes the 15th place from 2.8 million readers.

History

1994: Foundation of the company

The Salon-Press publishing house was founded in 1994.

2006: RBC buys "Salon Press"

RBC in 2006 purchased 60% of ID for 634 million rubles, or about $26 million, and in 2008 bought in addition another 20% for 191 million rubles, or $7.8 million.

2007: The cost of the main brands - $13 million

In 2007 the Ideas of Your House brand was estimated in at $8 million, Salon Interior —в by $5 million.

2011: RBC "Salon Press" conducts negotiations on sale

"We have a Salon-press publishing house which brings money and in which we possess 80%, but for us it is a non-core asset. We build the multimedia company with a big share of Online projects and new technologies. Businesses in which there are components of the Internet, a telecom and technologies are estimated by investors and the market with higher multiplicator, than traditional media. It gives big growth rates even in a present unstable situation in the market. At the end of November of RBC reported for the third quarter and 9 months 2011. Revenue from the Internet segment grew in nine months 2011 more than by 50% in comparison with the same period of 2010. Even at the existing turbulent situation we see that the Internet grows. And at Salon for the same period growth was only 5%.

At consolidation of results average growth on the company is 32%. It turns out that Salon pulls down. Several buyers apply for this publishing house. It is clear, that if were on sale two years ago, it would be possible to be on sale more expensively. In it you will not guess. It is possible not to sell today, to postpone for a year and to receive a situation even worse, than now.

"Salon" - the leader in the segment, many of the existing publishing houses do similar products in a segment of design of apartments, but not at all it turns out to implement successful projects. "Salon Press" historically occupied this niche and surely is in the lead, taking away, by our estimates, about 50% of the advertizing market in this segment. Many competitors want to purchase such asset to amplify.

All complexity of the transaction - in parts, first of all in the price at which we are ready to leave this asset" (on December 20, 2011, the chief executive of the Onexim group Sergey Lavrukhin^[1]).

2013: RBC sells "Salon Press" Burda Publishing House

On September 11, 2013 – the RBC company and Burda publishing house (Moscow) announced that they reached the agreement on sale of business of ID "Salon Press" which is one of the largest publishing houses in the Russian market of interior editions. At the time of the transaction "Salon Press" issues seven magazines, including the Idei Vashego Doma magazine is the most popular edition focused on mass audience, and the Salon-interior magazine - the leader among interior editions in a premium segment.

Signing of all legally binding documents within this transaction took place on September 10, 2013. The parties expect to close the transaction and to complete financial calculations until the end of 2013, after obtaining necessary permissions from regulating authorities.

Burda can pay $15-20 million for "Salon press", tell two sources familiar with the course of negotiations. RBC sells non-core ID since the end of 2008 when the holding could not pay off on the credits and passed under control of the Onexim group of Mikhail Prokhorov. At different times "Salon press" Sanoma Independent Media, Hearst Shlulev Media, Axel Springer were interested, but they did not accept the price of $30 million declared the seller. "Salon press" was considered as one of the last real applicants for purchase the entrepreneur Boris Belotserkovsky whose spouse Veronika manages ID "the Top — 50" (the Time Out magazines, Dog). The amount less than $25 million appeared in negotiations with it, and afterwards RBC was necessary to reduce the price again.

"We are complete of enthusiasm concerning opportunities which this transaction opens for us, and we are going to continue active development of a perspective segment of design and a decor of interiors in Russia. This step corresponds to our strategy for creation of the large direction of editions in a luxury segment, in parallel developing successful projects in a mass segment", - the CEO of Burda Russia Juergen Ulrich commented on the transaction.

"According to the development strategy the main objective of RBC is strengthening of a position of the absolute leader in a segment of business information. Sale of business of ID "Salon Press" specializing in printing editions of interior subject became a logical step to implementations of our strategy and will allow to optimize structure of an asset portfolio of RBC and also will give the chance to concentrate efforts on priority activities of the company. The money obtained from sale will be allocated for start of new projects in segments, profile for RBC", - the president of RBC Derk Sauyer said.