ANNUAL REPORT 2018 Rock_NC206x268.indd 1 22/05/16 13:50 ANNUAL REPORT 2018 A FOREWORD 1 6 CORPORATE PROFILE 2 10 CORPORATE VALUES 3 14 MEDIA MARKET ANALYSIS 4 CONTENT 22 SUMMARY OF BUSINESS 4.1 22 THE OUTDOOR ADVERTISING MARKET 4.2 28 THE TV JOJ GROUP 4.3 38 RADIO ADVERTISING MARKET 4.4 42 PRINT MEDIA SECTOR 4.5 46 INTERNET APPLICATION DEVELOPMENT 5 50 PERSONNEL POLICY 6 54 SIGNIFICANT EVENTS IN 2018 7 58 RISK FACTORS AND RISK MANAGEMENT 8 64 ADMINISTRATION AND MANAGEMENT 9 74 ORGANIZATIONAL STRUCTURE 10 78 CORPORATE SOCIAL RESPONSIBILITY 11 82 DECLARATION OF THE COMPANY’S BOARD OF DIRECTORS ATTACHMENT 1 – CONSOLIDATED FINANCIAL STATEMENTS ATTACHMENT 2 – INDIVIDUAL FINANCIAL STATEMENTS Dear business partners and colleagues, In the past year, the growth of the economy of Slovakia and across Europe positively influenced the situation in the media sector, which also transformed into the excellent results of our Group. Unfortunately, the year 2018 will remain the year of the murder of journalist Ján Kuciak, which reso- nated and still resonates across Slovak, but also foreign media. After these tragic events, the work of media and journalists has become much more intensely monitored by society. We have to believe that we are able to use this enormous power to help people in Slovakia live better. JOJ Media House had a very successful year and continues strengthening its significant position in the Central European media market. Advertising costs grew year on year, and we expect similar growth in the coming year. I consider the new regional periodicals “Petržalské noviny” and the very successful issue of five-year bonds in the past year as the most important events of our Group. The year 2018 was successful even in the outdoor advertising sector, as evidenced by the results of the Slovak, Czech and Austrian companies belonging to the Group. All outdoor companies have been bringing innovations that strengthen their market position. The Slovak Akzent BigBoard has prepared a new supplement for its clients for scheduling campaigns in the form of detailed maps of carriers. The Austrian Epamedia continues to invest in the development of digital advertising and is a model in environmental access. The Czech BigBoard Praha develops the link of outdoor and online advertising through the BigPlan tool via SMS/MMS remarketing OOH. TV JOJ has recorded the most successful year in its history in terms of sales. It also started selling online video ads in collaboration with the major local publishers – Ringier Axel Springer, News and Media Holding, and others – via the Valetin commercial online platform bringing together the premium Slovak online content. For Radio Services, it was important to continue the project RÁDIO FUNGUJE, which is a unique example of how competing actors can collaborate. We managed to organize together a 2nd year of the conference on radio advertising – RADIO RULLEZ 2018 Volume 2: Creativity, which was held in the Hotel Bratislava on 15 November 2018. In cooperation with the monthly “Stratégie”, we continue the competition “Rádio šupa”, by which we want to support the logging of radio spots into regular evalu- ation carried out by the monthly “Stratégie”. Our collaborative endeavor has also recorded success in the growth of investments in radio as a media type. In the next year, we want to continue fulfilling our vision of building a strong Central European media group. We will provide high-quality media services, improve product quality, and bring a range of interesting projects within each of our segments. In the JOJ Media House Group, the past year was characterized by the further development of our business and the excellent results, for which I would like to thank all employees. I would also like to thank our business partners and investors for their confidence and wish you all a successful year 2019. Richard Flimel Chairman of the Board of Directors ANNUAL REPORT 2018 CORPORATE PROFILE 1 ANNUAL REPORT 2018 CORPORATE PROFILE CORPORATE PROFILE Since its foundation on 6 November 2010, JOJ Media House, a.s., (hereinafter referred to as the “parent company” or the “Company” and jointly with its subsidiaries as the “Group”), has ranked among the leading media companies not only in Slovakia and the Czech Republic but also in Austria and Croatia. It continuously strengthens its position. SLOVAK REPUBLIC THE PRINT MEDIA SECTOR web design, operation of Internet domains and provision of the leader in the Czech market in the field of billboard outdoor technical support. advertising. → → In Slovakia, the Company operates in the following market Bilbo City s.r.o. (100% share) – Rental of advertising space. NOVI LIST d.d. (84%) – The Novi List newspaper publishing. THE RADIO BROADCAST SECTOR → → areas: Velonet ČR, s.r.o. (100% share) – Rental of advertising GLAS ISTRE NOVINE d. o. o. (89%) – The Glas Istre news- space, bike sharing. paper publishing. TELEVISION BROADCAST → → → Radio Services a.s. (100% share) – The company provides Qeep, a.s. (100% share) – The company focuses on RTD d.o.o. (100 %) – The Zadarski List newspaper publishing. AND PRODUCTION SECTOR → comprehensive services to radio broadcasters. large-format outdoor media and LED screens in the city INFANTINFO d.o.o. (0.9%) – Radio operation. center of Prague. → OTHER SECTORS → Slovenská produkčná, a.s. (94.96% share) – Through this News Advertising s.r.o. (100% share) – Rental of advertis- company, the Company owns shares in the following com- ing, especially double bigboard spaces. → → panies: JOJ Media House, a.s., owns a 30% share in the company Flowee s.r.o. (65% share) – The company operates the big- → MAC TV s.r.o. (100% share) – The company is a holder of Starhouse Media, a.s., which operates in the field of artist gest page about modern lifestyle on the Internet in the Czech a license to broadcast the television stations TV JOJ, PLUS, management. Republic. → → WAU, RiK, and Ťuki TV. It also operates Internet portals of Lafayette s. r. o. (100% share) – The company currently Kitchen Lab s.r.o. (70% share) – The company operates the the Group. does not perform any business activity. web and mobile application kucharky.cz. → → → DONEAL, s.r.o. (100% share) – The company is a holder of NIVEL PLUS s.r.o. (100% share) – The company is engaged Nadační fond BigBoard (100% share) – The aim of the a license to broadcast the TV station JOJ Cinema. in newspaper publishing. endowment fund is charitable activities and assistance to → Magical roof s.r.o. (80% share) – The company is a holder of persons in need. CZECH REPUBLIC → a license to broadcast the TV channel JOJ FAMILY. D & C AGENCY s.r.o. (100% share) – The company owns → PMT, s.r.o. (27% share) – The company ensures the imple- a 48% share in the company ERFLEX, a.s. THE OUTDOOR ADVERTISING MARKET → mentation of electronic television audience measurement via ERFLEX, a.s. (48% share) – The company primarily deals people meters. with building and operating networks of outdoor advertising As regards the outdoor advertising industry in the Czech and navigation spaces. THE OUTDOOR ADVERTISING MARKET Republic, JOJ Media House, a.s., is a 60% shareholder of the AUSTRIA company BigBoard Praha, a.s. Through its companies, it is → Akzent BigBoard, a.s. (100% share) – Through this compa- the leader in the Czech outdoor advertising market. BigBoard ny, JOJ Media House owns shares in the following companies: Praha, a.s., is the owner of business shares in the following JOJ Media House, a.s., is the sole partner of the company Akcie. → BigMedia, spol. s r.o. (100% share) – Exclusive selling ads companies: sk, s.r.o., which owns a 100% share of the company EPAMEDIA on the carriers of its parent company and the aforementioned – EUROPÄISCHE PLAKAT- UND AUSSENMEDIEN GMBH → companies BigMedia, spol. s r.o. (100% share) – Rental of advertising (hereinafter referred to as the “EPAMEDIA”), which is the sec- → RECAR Slovensko a.s. (100% share) – Advertising in means space of its network. ond in the outdoor advertising market in Austria. EPAMEDIA → of transport. Czech Outdoor s.r.o. (100% share) – Rental of advertising is the owner of shares in the following companies: → RECAR Bratislava a. s. (70% share) – Advertising in means space. → → of transport in Bratislava, the capital city of Slovakia. Český billboard, s.r.o. (100% share) – Rental of advertising R&C Plakatforschung und – Kontrolle Ges.m.b.H. → BHB, s.r.o. (51% share) – Selling ads of a particular space. (51% share). → character. MG Advertising, s.r.o. (50% share) – Rental of advertising CROATIA space. THE INTERNET AND APPLICATION → Barrandia s.r.o. (100% share) – Rental of advertising space. DEVELOPMENT SECTOR → Expiria, a.s. (100% share) – Rental of advertising space. In 2016, JOJ Media House, a.s., has expanded its presence in → RAILREKLAM, spol. s r.o. (100% share) – Rental of adver- the media market into the print segment in Croatia, where it → eFabrica, a. s. (100% share) – Its business activities are tising space on the property of the company České dráhy, a.s. owns shares in the following companies: → concentrated on the development of Internet applications, outdoor akzent s.r.o. (100% share) – The company is 8 9 ANNUAL REPORT 2018 CORPORATE VALUES 2 ANNUAL REPORT 2018 CORPORATE VALUES CORPORATE VALUES THE VISION OUR MISSION STRATEGY JOJ Media House’s vision is to become the major Central The mission of JOJ Media House is to provide high quality The JOJ Media House strategy is to expand its products via European media company and secure the long-term satisfac- media services to society in general as well as to business both organic and inorganic growth in Central and Eastern tion of its customers with its media services and products for partners, which we want to ensure through the continuous Europe and the streamlining of the activities of individual- the effective communication of advertising to target groups.