Month: November 2012

Arnoldo Mondadori Editore S.p.A. has announced that, following the receipt of authorization by the Spanish antitrust body, the details were finalised today based on the contract signed with Media Finance Holding (Bertelsmann Group) on 5 November. The said contract, which has already been communicated to the market, concerns the sale of 50% of the share capital of the Spanish registered company Random House Mondadori S.A..

The value of the transaction has been defined at a total of €54.5 million, including cash, which will have a positive impact on the consolidated income statement estimated at around €2.8 million.

From 6 December Silvia Grilli will be the new editor of Grazia.

Grilli, who has a degree in modern languages from the Cà Foscari University in Venice, began her professional career at La Notte, L’Indipendente and il Giornale, before being appointed news editor of Anna in 1998 and managing editor of Cosmopolitan in 2000. She has also been a contributor to Il Foglio, Epoca and a number of foreign titles, including The Guardian, The New York Observer and The New York Sun. In 2001 she was a special correspondent for Panorama and co-editor of Grazia in 2005, becoming editor in chief the following year. At the beginning of 2007 she moved to the United States as “editor at large” for all of the Mondadori titles. In November of the same year she was appointed deputy editor of Panorama.

Mondadori wishes to thank Vera Montanari for the constant commitment and passion shown in her time with the company; thanks to her professionalism and experience Grazia has both strengthened its position as a women’s fashion and news magazine of excellence and note and become a point of reference for elegance and style, not only in Italy, but also internationally, where the brand is now present with a network of 21 editions.

From 29 November Grazia will also be published in Poland. The new international edition of the magazine, the result of a licensing agreement with the Bauer Publishing House (Wydawnictwo Bauer) of Bauer Group, will be a fortnightly.

Thanks to this partnership, the Polish magazine market will be enriched with an upscale brand that is already an international symbol of the elegance and style Made in Italy fashion. The new edition of Grazia, edited by Anna Zaleska, will consequently offer also to Polish readers the unmistakable mix of celebrities, fashion and lifestyle that has always characterised Mondadori’s historic fashion title.

“We are sure that when our readers get to know Grazia they will be enthusiastic and won’t want to be without it: the new magazine will capture their attention by offering them the best of celebrities and lifestyle,” declared the editor, Anna Zaleska.

The launch of Grazia in Poland will be supported by an advertising campaign across a range of media: TV, print, radio, B2B on the internet, bilboard, POS and outdoor.
The campaign has been developed by the Polish company Happy Hours.
The arrival of the new international edition will also be celebrated with a party offered by Bauer Media Group tomorrow, to be attended by a number of celebrities, advertising clients, media agencies and media specialists.

The Mondadori Group today announced the arrival in Italy of the new Kobo Arc. The 7″ Android tablet from the Kobo family is now available to order from inMondadori.it/kobo and, from tomorrow, from 60 Mondadori bookstores.

With the arrival of Kobo Arc from the first week of December, Mondadori extends the range of products for the mobile use of media content, not just ebooks but also magazines, web access, music, news, videos, apps and everything from the world of social media.

Orders can be made on inMondadori.it/kobo and at selected bookstores for all of the Kobo Arc models (16 GB at €199, 32 GB at €249 and 64 GB at €299) with which, exclusively in Italy, you can read for free for 3 months some of the most popular Mondadori titles: Donna Moderna, Grazia, Panorama and Sale&Pepe.

Mondadori has also extended to Kobo Arc the promotion that allows you to download three free ebooks of your choice from a selection of nine of the biggest current bestsellers: Sveva Casati Modignani’s Léonie, Michael Connelly’s Il respiro del drago; Pierre Dukan’s La dieta Dukan; Sebastian Fitzek’s Il cacciatore di occhi; L’inverno del mondo by Ken Follett; Il linguaggio segreto del volto by Anna Guglielmi; 1Q84 by Murakami Haruki; Walter Isaacson’s Steve Jobs and Cinquanta sfumature di grigio by EL James.

In addition to most used service apps, already loaded on the Kobo Arc – Skype™, Twitter®, YouTube and Zinio® – Italian users will have immediate access to the apps Tgcom24, VideoMediaset and SportMediaset.

Kobo Arc is designed to facilitate rapid interaction with content – from “notes” to highlights thanks to Tapestry – and quickly find others: the “Discover” navigation bar suggests content, based on the users’ interests, web pages, articles, books, music and movies, free or paid.
The Kobo Arc tablet also provides access to more than 700,000 applications available from the Google Play store, 20 million songs and thousands of movies. The 1.5GHz processor – among the fastest available in a tablet – the WiFi connection and advanced multimedia features, including front speakers and a 7” HD 1280×800 high-resolution display with over 1 million pixels, make for an engaging user experience with of any type of content.Through Skype and front facing 720p HD video camera, Kobo Arc is also perfect for video chat.

Kobo has an open philosophy that encourages people to read at any time, anywhere on the device of their choice. The eReading platform automatically synchronises both users’ libraries across all Kobo devices (from the Kobo Arc to the Kobo Touch, Kobo Glo and Kobo Mini eReaders) and free applications to any desktop, tablet, eReader or smartphone. With over 10 million users around the world, Kobo offers a very extensive choice with the new family of eReaders, a growing catalogue of more than 3 million eBooks and content in 60 languages.

For more information about orders and avalaibility please visit: www.inmondadori.it

Kobo Arc: Specifications
Size: 120 mm x 11.5 mm x 189 mm.
Weight: 364 g.
Processor: Texas Instruments OMAP 4470, 1.5 GHz (Dual Core).
Screen: HD 7″ 1280 x 800 resolution, 215 ppi, 16.4 million colours
RAM: 1 GB.
Display: IPS LCD optimized for viewing at 178°; durable glass, resistant to being dropped and damage, scratch and impact resistant.
Connectivity: WiFi 802.11 b/g/n, Micro USB and WiFi Direct.
Memory: 16 GB, 32 GB or 64 GB, depending on product availability.
Camera: 720p HD 1.3 megapixel front camera, Skype™ certified
Battery life: Up to 10 hours of continuous recording/playback with WiFi off, over 2 weeks of standby time
Sensors: Accelerometer, ambient light detector.
Colours: Available in black or white.
Audio: Two integrated front speakers with SRS TruMedia™. Support for 5.1 audio with headphones. Built-in microphone. Universal 3.5 mm stereo input.

*Android is a registered trademark of Google Inc.

Tv Sorrisi e Canzoni, the magazine that has accompanied the history of music, television and lifestyle in Italy, celebrates its 60th anniversary. To celebrate this anniversary Sorrisi has produced a book “60 anni di Tv Sorrisi e Canzoni – Una storia italiana”, published by Mondadori, which describes the evolution of the Italy’s first entertainment.

“The story of Sorrisi coincides with the history of Italy from the postwar period to the present, as well as with the history of our dreams, those made of songs, films, TV shows and ‘recent and not so recent’ characters” says Aldo Vitali, editor of Tv Sorrisi e Canzoni. “It is of course also the story of a special magazine, the best-selling and most imitated, the most whimsical and sometimes, as you can see from the pictures and the covers in this book, the craziest. Above all, the most authoritative; so much so that it has been widely considered “the Bible of entertainment.” This book, based on Sorrisi’s astonishing archive, is a great adventure full of twists and emotions and a genuine treat for the eyes. We like to think that behind the many surprises on these pages, people will recognize the same curiosity, the same passion and the same soul with which we continue today to keep the spirit of Tv Sorrisi e Canzoni alive,” Vitali concluded.

The magazine has accompanied all the changes that have occurred in the world of entertainment – from the period in which songs were a unifying element for the whole country, to the emergence of television in the swinging ’60s, through the boom of commercial television in the ’80s, to the present day, with the advent of new channels, new technological platforms and new ways of using content – becoming an increasingly essential tool with which to navigate the vast array of programmes, films, music, books, technology, radio and all other forms of entertainment.

“60 anni di Tv Sorrisi e Canzoni – Una storia italiana “, with 400 photographs and a preface by Aldo Grasso, traces the history of entertainment in Italy. The book will be available from tomorrow in all bookshops at the price of €29, including a gift facsimile of the first issue of Tv Sorrisi e Canzoni.

Mondadori, with a score of 84/100, was included among high disclosure scores of CDP Italy 2012.
This morning CO2 emissions disclosure event, organised by CDP and London Stock Exchange, was presented at Milan Stock Exchange. In 2012, 100 best capitalised listed companies were invited to disclose CO2 emissions: 46 companies, representing 60% of Italian market capitalisation, answered CDP questionnaire.
Mondadori, new entrance, with a score of 84/100, was included among high disclosure scores of CDP Italy 2012

The Board of Directors of Arnoldo Mondadori SpA met today, under the chairmanship of Marina Berlusconi, to examine and approve the interim report for the first nine months of the year to 30th September 2012, as presented by the Group’s Deputy Chairman and Chief Executive, Maurizio Costa.

THE MARKET SCENARIO
During the third quarter all the main indicators pointed to a continued worsening of the economy. Italy continues to feel the continuing effects of a deep recession and there are no signs of a turnaround in the short term.
With regard to the markets of reference for the Mondadori Group:
– book sales continued to fall (-7.8%) across all the distribution channels, with a particularly disappointing performance in the paperback segment;
– according to the figures up to the end of August, in magazines the downward trend continued both in circulation (-11.5%) and advertising (-16.2%), while in the add-ons market there was no end to the decline that began some years ago (-20.7%);
– in France newsstand magazine sales were down by -5.3%; with subscriptions stable (official figures to September are not yet available); due to a significant reduction in advertising investments in recent months advertising revenues for the period to September were down by 4.2% (-0.5% to May).

GROUP PERFORAMCE IN THE PERIOD TO 30 SEPTEMBER 2012
Consolidated revenues amounted to €1,028.4 million, a fall of 7.5% compared with €1,112 million for the same period of 2011. Excluding the consolidation of Editions Mondadori Axel Springer Snc by Mondadori France, the reduction in revenues would be of 10.3%.

Consolidated gross operating profit amounted to €63.1 million, a fall of 39.7% on the €104.6 million of the previous year. The reduction was partly due to lower non-recurring income and higher costs for restructuring sustained in 2012 compared with last year.

Consolidated operating profit amounted to €44.6 million, compared with €87.8 million last year, with amortizations and depreciations of tangible and intangible assets of €18.5 million (€16.8 million in 2011).

Consolidated profit before taxation came to €32 million, compared with €71.3 million in the same period of last year. During the period financial charges amounted to €12.6 million, an improvement of €3.9 million compared with 2011.

Consolidated net profit for the period totalled €16.1 million, (after minority interest of €1.3 million) compared with €44.1 million in the same period of the previous year.

Gross cash flow in the first none months of 2012 amounted to €34.6 million, compared with €60.9 million in 2011.

The Group’s net financial position went from -€335.4 million at the end of 2011 to -€346 million on 30 September 2012 (-€380.6 million on 30 September 2011).
Significant facts following the end of the third quarter included the signing on 5 November of the agreement for the sale to the Bertelsmann Group of the company’s 50% stake in Random House Mondadori, a book publisher based in Barcelona and operating in the Spanish and Latin American markets. The operation, with a value of €54.5 million, is subject to approval by the Spanish antitrust authorities and should be concluded before the end of the year.

Information regarding personnel
As of 30 September 2012, the personnel employed by companies of the Group (both on temporary and permanent contracts) amounted to 3,743. On a like-for-like basis, staff numbers were down by 66 (-1.7%) and the cost of labour by 3%, also taking account of start-up and restructuring costs.

With regard to the scope of consolidation, it should be noted that the figures for 2012 include the staff, and related costs, of Editions Mondadori Axel Springer Snc, which in 2011 was consolidated using the net equity method. Similarly, the total number of employees of Italian companies was reduced by 32 and the Parent Company increased due to the incorporation of Mondadori Editorial Wellness S.r.l. and a number of intercompany transfers.

It should also be noted that on 5 October 2012 a Ministerial Decree recognised and approved the “state of crisis” and the resulting restructuring plan for the companies Arnoldo Mondadori Editore S.p.A., Mondadori Pubblicità S.p.A. e Press-Di Distribuzione Stampa e Multimedia S.r.l..
The implementation of the aforementioned plan, which is expected to be completed by April 2014, involves 152 employees on printing-editorial contracts and will permit a further reduction in labour costs from November 2012.

RESULTS OF THE BUSINESS AREAS

• BOOKS

Compared with the same period of 2011, in the first nine months of the year, the trade book market saw a continuing fall in the bookstore channel, both in the number of copies sold (-7.1%, source: Nielsen) and in terms of value (-8.1%, source: Nielsen), also due to poor sales of paperbacks. The downturn also affected the large-scale retail and online channels.
In this context, the Mondadori Group confirmed its leadership in the market of reference (27.7% in terms of value, source: Nielsen), and with 6 of the top 10 best selling titles in the period and 45 of the top 100.

During the period, revenues from book sales amounted to €261.6 million, a fall of 6.7% compared with the €280.5 million of the same period of the previous year.

As regards the performance of the Group’s trade publishing houses in the third quarter, Edizioni Mondadori has reached a market share of 14.1% in terms of value (+1.3% compared with the same period of 2011), thanks also to the full effects of the success of the EL James Fifty Shades trilogy, which in just over three months sold 2,400,000 copies in Italy, and for several weeks holding the first, second and third places in the best-sellers list.
In the genre fiction area, in September Mondadori was the first company in the world to publish the highly anticipated second novel of The Century Trilogy, L’inverno del mondo by Ken Follett with an initial print run of 450,000 copies. Within a few days, the book reached the top of the best-sellers list, doubling the results of the first volume of the trilogy, La caduta dei giganti, published two years ago.
There was also great satisfaction for the victory in the two most prestigious Italian literary prizes: the Premio Strega, 2012, awarded to Alessandro Piperno with Inseparabili (80,000 copies sold) and the Premio Campiello 2012, which was won by Carmine Abate with La collina del vento (40,000 copies in September alone).
A strong publishing programme is confirmed for the final quarter with the arrival of new titles from, among others, Paolo Giordano, Valerio Massimo Manfedi, Luciana Littizzetto, Michael Connelly, Stephen King, Murakami Haruki and Ian McEwan.

On the Educational side, Mondadori is the third largest operator with a market share of 12.8%. During the period the company has developed technological solutions that allow for greater flexibility of use, regardless of the operating system or device, and a greater integration of digital products.

In the ebook market, Mondadori is the leader with a market share of around 40%. The third quarter of 2012 showed a significant increase in sales, especially in the August, which recorded average daily downloads of more than 5,000.
The E.L. James trilogy alone recorded more than 90,000 downloads in the quarter. Romantic Fiction also performed well, which includes the digital version of the “Category” titles (published in print form only for newsstands) and the series Emozione degli Oscar Mondadori. There was an excellent start for the new book by Ken Follett L’inverno del mondo. Finally, also of note was the launch of the new digital series “Mondadori XS”.

• MAGAZINES ITALY

The worsening of the economic and financial crisis and increased uncertainty over the short and medium term have had a marked influence on the dynamics of the markets in which Mondadori operates. Particularly in the last quarter, there was an additional reduction in revenues from both the sale of magazines and advertising, only partially offset by the results in the three summer months of add-on sales.

In the first nine months of 2012 the area generated revenues of €298.6 million, a fall of 15% compared to the €351.1 million euro in the first nine months of 2011.

There were varying trends among the various activities included in this aggregate.
– circulation revenues, penalised by the downturn in subscriptions and newsstand sales, and despite a reduction in average prices, were down by 10.8%;
– revenues from add-on sales (-18.3%), were down less than in the first half;
– advertising revenues were down by 20.7%, in a very difficult market with some significant changes, such as the temporary suspension of publication of Flair and the closure of Economy;
– revenues from International Activities (licensing +6.7%, advertising sales for the network +27.1%) and net revenues from Mondadori sites (around +40%, net for the publisher) performed well and are growing rapidly.

In terms of circulation, in the period Mondadori recorded a fall of 10.8%, in line with the market, excluding the additional copies of the new weeklies and monthlies (Source: internal estimate). Despite these new launches, the market recorded a downturn of more than 6%.
In particular, an analysis of circulation figures for the year showed that the usual seasonal upturn in summer sales of magazines was as marked as usual.

In a context characterised by a sharp slowdown in advertising in all media, the Internet advertising market showed a growth of 11% compared with the same period of 2011. At the same time the sites of the main Mondadori magazines ​​ performed much better than the market in terms of traffic and advertising, allowing an increase in revenues of 39.3%.

• ADVERTISING

The performance of the advertising market to August 2012 showed an overall downturn of 10.5% compared with the same period of 2011, and was also down on the first half of 2012 (-9.5%).
This negative trend affected all media: television (10.9%), radio (-7.4%), outdoor (-12.5%), cinema (-22.4%), direct mail (-15.7%), newspapers (-13.9%) and magazines (-16.2%).
The only exception was the Internet, which did not grow as fast as in previous years.

In the first nine months of 2012 Mondadori Pubblicità recorded revenues of €129.1 million, a fall of 21.8% from the €165 million of 2011.
The magazines published by Mondadori saw a downturn of 22.3%, due to a negative performance in almost all sectors, as well as the temporary suspension of the publication of Flair.
The aggregate figure, which includes revenues from third-party publishers of newspapers and joint ventures, showed an overall decline of 26.7%. This trend in revenues was due in equal measure to the contribution of both monthly and weekly titles.
With regard to the advertising sales for the two radio stations in the portfolio, the company recorded a fall of 11.3%.

During the first nine months Mondadori Pubblicità attempted to respond to the market by developing the organisation and management of events involving the company’s most important brands, and increasing revenues in this area by 85% compared with the first nine months of 2011.
As for the internet, Mediamond continued to record strong growth in revenues in the period (+63.7% compared with 2011), thanks to the positive performance of Donnamoderna.com (+16%), Grazia.it (+60%) and Panorama.it (+36%) for the RTI there was a good performance for TGcom24 (+15%) and SportMediaset (+53%) and rapidly expanding sales for VideoMediaset.

• MAGAZINES FRANCE

Mondadori France ended the first nine months of 2012 with revenues of €284.5 million, up 9.6% from the €259.6 million of the same period of 2011, on a comparable basis (i.e. excluding the effects of the change in the method of consolidation of the joint venture Editions Mondadori Axel Springer Snc), revenues were down by 2.3%.
The continued focus on editorial quality and costs made it possible to report an increase in the gross operating margin of 5.9% compared with 30 September 2011, taking it to €27 million euro.

Advertising revenues: In a market that – contrary to an essentially stable situation in the first six months of the year – saw a sudden downturn in the third quarter with an overall reduction of 4.2% over the nine months, revenues for Mondadori France titles (on a like-for-like basis) were down by 1.9% compared with the same period last year, mainly due to the trend in the upscale women’s segment, which includes the weekly Grazia (+6.6%) and the monthly Biba (+8.4%), and L’Auto Journal (+7.1%), Sport Auto (+7.2%) and Mode & Travaux (+7.1%).

Circulation revenues generated by Mondadori France, which include both newsstand sales and subscriptions (70% of total revenues), were slightly down at the consolidated level (-2.3% on a like-for-like basis). The trend in newsstand sales (-5%) was in line with the market (-5.3%) compared with the first nine months of last year, whereas for subscriptions (33.8% of revenues), Mondadori France, with a portfolio of more than three million customers, continued to grow (+0.7% compared with the same period of 2011).
Several titles saw an increase in copies sold: 351,000 copies Biba (+6.7%), L’Ami des Jardins, 159,000 copies (+7.9%), Modes & Travaux 437,000 copies (+1.4%); Grazia, launched in 2009, confirmed its success with an increase of 3.4% to 193,000 copies.

In the first nine months of the year investments in the digital sector continued, both to increase the audience for existing sites and their presence on the new devices, and to diversify the offer and explore new opportunities through new acquisitions.

International Activities
The company’s international activities, transferred to the new company Mondadori International Business, created as part of the corporate restructuring project previously announced to the market following the approval of the interim report for the period to 30 June 2012, continued their development: the Grazia International Network now has 19 editions, in addition to Italy, and will be expanded before the end of this year by Grazia Poland and in 2013 by Grazia Korea and Grazia Spain. In addition, in August the company also saw the launch of Flair Germany.

On the advertising front, in the first nine months of 2012 sales in the Italian market, in the fashion and furniture sectors, of €4.8 million euro, an increase of 27.1% compared with the same period of 2011. Of particular note was the excellent performance of Grazia France, Grazia UK, Grazia Russia and Grazia Germany (+54% compared with 2011).

As regards investments, Mondadori is present in:
– Greece, Bulgaria and Serbia through its stake in Attica Publications that, despite the serious crisis, has achieved results in line with the previous year, thanks to a strong growth in market share, cost cutting and the success of add-on sales;
– China, with the joint-venture Mondadori SEEC Advertising Co. Ltd., the exclusive advertising sales company for Grazia China, which ended the first nine months of 2012 with revenues of €7.8million (+57% compared with the same period of 2011);
– Russia, which with an edition of Grazia that in the first nine months of 2012 performed better than the market (revenues +17% compared with 2011).

• DIGITAL

Following a change in the organisational structure of the Group, the figures relating to digital activities in the first nine months of the year are booked, in line with internal reporting procedures, as follows:
– for publishing activities, e-books, properties, subscriptions and online advertising, in the business areas of reference, i.e., Books, Magazines Italy and Magazines France;
– for e-commerce activities, conducted through the web site Bol.it (from November inMondadori.it) and online Bookclubs, in Direct;
– for diversification activities and investment to support the business, gambling, applications and CRM, in Other Business.

• DIRECT

In order to counter the recessionary economic environment a process of rationalization of the network of book shops was begun in the first half, which saw the closure of the Milan Berchet store and some smaller stores, and a development plan for new sources of revenue through the expansion of the range of products.

Total revenues amounted to €169.5 million (-11% compared to the €190.4 million at 30 September 2011 (it should be noted that the main economic indicators for 2011 have been restated to include the figures for activities conducted through Bol.it attributed to the business with effect from the beginning of the year).
Revenues can be broken down as follows:
– retail sales and other revenues, down due, as well as to general market conditions, the closure of some stores, during the second half of 2011 and first half of 2012 and a new commercial approach;
– direct marketing sales, down overall as a result of cutbacks in investments by companies, a significant reduction of consumer spending and shifts in buying habits of the benefit to retailers;
– sales form e-commerce activities, managed by the site Bol.it, down as a result of the contingent market phase and changes in the competitive scenario.

In early October, following the partnership signed with Kobo Inc., Mondadori launched in Italy the series of eReaders made by the Canadian group, to be sold online and through the network of stores (350 stores which will rise to 500). Among the objectives of this operation:
– the achievement of a market share for ebooks significantly greater to that for printed books;
– to be the only operator in the world, market leader in trade publishing, with a physical and digital retail system integrated and brought together under a single brand inMondadori and high quality eReading devices on an open platform.

• RADIO

At 30 September 2012, radio advertising revenues in Italy recorded a downturn of 8.1% compared with last year, following a decline in the first half of 5.5% and an even bigger drop in the third quarter (-14.6%, Source: FCP Assoradio).
During the period advertising sales for R101 generated net revenues of €10.3 million, down 12% on the €11.7 million of the same period of 2011.

EXPECTATIONS FOR THE FULL YEAR
In the third quarter figures for production, consumer spending and investments confirmed the trend of a gradual worsening of the economic situation. Moreover, it is not at present possible to predict when or how there might be a reversal of this trend.

In the current market situation in which Mondadori operates we only not repeat what was stated in the interim financial statements, regarding:
– the Group’s priorities: i.e. the continuous improvement of product quality, the development of digital activities and the international network of magazines, and continued commitment to the review of processes and structures for the reduction of operating costs;
– the forecast of the level of operating profitability, which will be less than the previous year also in the last quarter.

ADHERENCE TO THE PROCESS OF SIMPLIFIED RULES ADOPTED BY CONSOB REGULATION N. 18079 OF 20 JANUARY 2012§
Notice is hereby given that, pursuant to art. 3 of Consob resolution no. 18079 of 20 January 2012, the Board of Directors of Arnoldo Mondadori Editore SpA resolved, in relation to the provisions of Articles. 70, paragraph 8, and 71, paragraph 1-bis of Consob Regulation no. 11971/99, to make use, with effect from today, of the possibility to waive its obligations to publish information as foreseen by the aforementioned Consob Regulation regarding significant operations such as mergers, spin-offs, capital increases by contribution in kind, acquisitions and disposals.

§

The executive responsible for the preparation of the company’s accounts, Carlo Maria Vismara, declares that, as per art. 2, 154 bis of the Single Finance Text, the accounting information contained in this release corresponds to that contained in the company’s formal accounts.

§

The interim report for the period to 30 September 2012 will be available at the company’s corporate headquarters, Borsa Italiana S.p.A. and on the web site www.gruppomondadori.it (Investor relations section) from today.
Also today, the company will publish on the web site www.gruppomondadori.it (Investor relations section) and www.borsaitaliana.it, the presentation made to analysts of the results for the period to 30 September 2012.

2012 CSR Online Awards – Italy 100: in the Italian edition of the CSR Online Awards published today by Lundquist, a strategic communications consultancy, Mondadori, which published its first CSR report this year, gained the 17th position, making it the best new entry.

Arnoldo Mondadori Editore S.p.A. has announced – with immediate effect and reporting to the deputy chairman and chief executive Maurizio Costa – the following changes in the organizational structure and responsibilities:

– the newly created Magazine Area will be headed by Ernesto Mauri; which will oversee the Magazines (Italy) Department, to be managed by Carlo Mandelli, and Mondadori France, which will remain the responsibility of Ernesto Mauri the current chairman and general manager. The creation of a Magazine area for the control of the domestic and French markets is based on the need for a greater focus on quality and product development, as well as structural and process efficiencies.
The changes facing magazines in this period demand extensive know-how in this area and an ability to identify new ways of integrating print and digital.
The decision to give to Ernesto Mauri this great responsibility is in line with his long experience with Mondadori and in the consumer magazine sector in Italy and France, and demonstrated by the recent excellent results achieved in the management of Mondadori France;

– Mondadori International Business, the company newly established as part of the corporate rationalization project previously announced to the market following the approval of the interim report for the period to 30 June 2012, will be headed by Stefano De Alessandri who will become the chairman and managing director. At the same time Zeno Pellizzari will be appointed general manager of the company. Mondadori’s foreign expansion in the magazine sector, through both joint ventures and licensing agreements in 25 countries, must now proceed with a plan for further growth also through new international alliances.

– Monradio, the company that manages the radio broadcasting activities of R101, will be also headed by Stefano De Alessandri, who has been appointed managing director.
Mondadori will intensify its commitment in the radio market which, despite the downturn in advertising investments, remains among the sectors with most potential.

Arnoldo Mondadori Editore S.p.A. today announced that it has signed a preliminary agreement for the sale to Media Finance Holding (Bertelsmann Group) of its entire stake, equal to 50% of the share capital, of the Spanish company Random House Mondadori S.A..

Established in 2001 as a joint venture with the Bertelsmann Group, Random House Mondadori operates in the trade books market in Spain and in the main Latin American countries, in particular Mexico, Argentina, Colombia, Uruguay and Chile.
In the year ended 31 December 2011, Random House Mondadori generated consolidated revenues of €110.3 million (€55.9 million to 30 June 2012).

The transaction value, comprising the purchase price and cash, has been determined at €54.5 million, with a positive impact on the consolidated income statement, in terms of a capital gain, estimated at €2.8 million.

The agreement will allow the Mondadori Group to further consolidate and focus investment and resources on its priority objectives as indicated during the process for the approval of the company’s interim financial statements.
With regard to books, this operation is part of the already outlined strategy focused on the acceleration of growth in both the trade and education sectors with an integrated model for print paper and digital, which includes the recent introduction in the Italian market of the Kobo eReaders and the forthcoming launch of a self-publishing platform.
Mondadori is also developing a unified distribution model under a single brand, inMondadori, which combines offline and online bookstores, e-commerce and physical retail, in a multiplatform system for the management of all the different sales channels.

Completion of the operation and the execution of the preliminary contract are subject to approval by the Spanish antitrust authorities, which is expected by the end of the year.