A FOREWORD 1 8 CORPORATE PROFILE 2 12 CORPORATE VALUES 3 16 MEDIA MARKET ANALYSIS 4 SUMMARY OF BUSINESS 4.1 24 THE OUTDOOR ADVERTISING MARKET 4.2 30 THE TV JOJ GROUP 4.3 40 RADIO ADVERTISING MARKET 4.4 44 PRINT MEDIA SECTOR ANNUAL REPORT 2019 4.5 48 INTERNET APPLICATION DEVELOPMENT 5 52 PERSONNEL POLICY 6 56 SIGNIFICANT EVENTS IN 2019 CONTENT 7 60 RISK FACTORS AND RISK MANAGEMENT 8 66 ADMINISTRATION AND MANAGEMENT 9 76 ORGANIZATIONAL STRUCTURE 10 80 CORPORATE SOCIAL RESPONSIBILITY 11 84 DECLARATION OF THE COMPANY’S BOARD OF DIRECTORS ATTACHMENT 1 – CONSOLIDATED FINANCIAL STATEMENTS Dear business partners and colleagues, we live in turbulent times. The past year saw a lot of findings and revelations that unsettled the society but on the other hand also mobilized the people and the media in a positive way. I consider this recognition to be crucial for further development. It brings us hope also in the current situation where we face a tremendous challenge posed by coronavirus COVID-19 pandemic. Thus, let me express my strong belief that we will soon overcome the pandemic also thanks to all measures and we will be gradually returning to the original state and the positive economic growth. JOJ Media House experienced a very successful year. We strengthened our significant position in the Central European media market and the Group’s results have been getting better and better for several years in a row. Investments in advertising have increased year on year but we cannot expect the growth in the following year as a result of the ongoing pandemic. In our view, the important decision for the Group was to further expand our online media presence through the HyperMedia Group and our entry into the digital media agency PTA Group, broadening and diversifying our media portfolio. The year 2019 saw huge changes in the television industry. The media transfer of the decade took place when Petr Kellner bought CME Company’s television channels including Markíza. CME is thus leaving our market after more than twenty years. In 2019, the JOJ Group expanded its portfolio in the Czech Republic by becoming an owner of Československá filmová společnost and its five channels. Regarding the year 2019, I am very content with our television JOJ Group. We beat our competitors at viewership and the market share in primetime at the annual average. A strong autumn season was exceptionally successful as we reigned supreme in the market in an unrivalled way for the whole sec- ond half of the year, fulfilling our objectives unequivocally. I consider the last year successful in the sector of outdoor advertising as well. In Slovakia, it was particularly affected by presidential and parliamentary election campaigns. The changes in the metro advertising operators’ positions were extremely significant events. By winning the tenders, the BigBoard Group strengthened its position of clearly the largest OOH operator in the Czech Republic. Austrian Epamedia continues making substantial investments in innovation and digital advertising development with emphasis on environment and sustainability. I was also delighted with results achieved by our other companies like the Croatian newspapers or Radio Services which made their contribution to the Group’s historically best results. And finally, I would therefore like to thank our business partners and investors for their trust and particularly to all employees without whom we would not be able to develop our business and achieve the excellent results. Most importantly, I wish you all perfect health and success in the year 2020. Richard Flimel Chairman of the Board of Directors JOJ Media House, a.s. 1 ANNUAL REPORT 2019 ANNUAL REPORT 2019 CORPORATE PROFILE CORPORATE PROFILE Since it was incorporated 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 INTERNET AND APPLICATION → AUSTRIA Barrandia s.r.o. (100% share) – Rental of advertising space. DEVELOPMENT SECTOR → Expiria, a.s. (100% share) – Rental of advertising space. → In Slovakia, the Company operates in the following market RAILREKLAM, spol. s r.o. (100% share) – Rental of adver- JOJ Media House, a.s., is the sole partner of the company → areas: eFabrica, a. s. (72% share) – Its business activities are tising space on the property of the company České dráhy, a.s. Akcie.sk, s.r.o., which owns a 100% share of the company → focused on the development of Internet applications, web outdoor akzent s.r.o. (100% share) – The company is the EPAMEDIA – EUROPÄISCHE PLAKAT- UND AUSSENME- TELEVISION BROADCAST design, operation of Internet domains and provision of tech- leader in the Czech market in the field of billboard outdoor DIEN GMBH (hereinafter referred to as the “EPAMEDIA”), AND PRODUCTION SECTOR nical support. advertising. which is the second in the outdoor advertising market in → Bilbo City s.r.o. (100% share) – Rental of advertising space. Austria. EPAMEDIA is the owner of shares in the following → THE RADIO BROADCAST SECTOR → Slovenská produkčná, a.s. (94.96% share) – Through this Velonet ČR, s.r.o. (100% share) – Rental of advertising companies: company, the Company owns shares in the following com- space, bike sharing. → → → panies: Radio Services a.s. (100% share) – The company provides Qeep, a.s. (100% share) – The company focuses on R&C Plakatforschung und –Kontrolle Ges.m.b.H. → MAC TV s.r.o. (100% share) – The company is a holder of comprehensive services to radio broadcasters. large-format outdoor media and LED screens in the city (51% share). a license to broadcast the television stations TV JOJ, PLUS, center of Prague. OTHER SECTORS → CROATIA WAU, RiK and Ťuki TV. It also operates Internet portals of the News Advertising s.r.o. (100% share) – Rental of advertis- Group. ing, especially double bigboard spaces. → → → DONEAL, s.r.o. (100% share) – The company holds a license JOJ Media House, a.s., owns a 30% share in the company Flowee s.r.o. (65% share) – The company operates the big- In 2016, JOJ Media House, a.s. has expanded its presence in to broadcast the TV station JOJ Cinema. Starhouse Media, a.s., which operates in the field of artist gest page about modern lifestyle on the Internet in the Czech the media market into the print segment in Croatia, where it → Magical roof s.r.o. (80% share) – The company is a holder of management. Republic. owns shares in the following companies: → → a license to broadcast the TV channel JOJ FAMILY. Lafayette s. r. o. (100% share) – The company currently Kitchen Lab s.r.o. (70% share) – The company operates the → THE PRINT MEDIA SECTOR Československá filmová společnost, s.r.o. (100% share) does not perform any business activity. web and mobile application kucharky.cz. → → – operates television channels CS film, CS mini, Kinosvět, NIVEL PLUS s.r.o. (100% share) – The company is engaged Nadační fond BigBoard (100% share) – The aim of the → Horor film, War TV and online video portal Film popular. in newspaper publishing. endowment fund is charitable activities and assistance to NOVI LIST d.d. (84%) – The Novi List newspaper → CS filmová, s.r.o. (100% share) – The company holds persons in need. publishing. CZECH REPUBLIC → → a license to broadcast TV channel WAR svět válek. D & C AGENCY s.r.o. (100% share) – The company owns GLAS ISTRE NOVINE d. o. o. (89%) – The Glas Istre → PMT, s.r.o. (27% share) – The company ensures the imple- a 48% share in the company ERFLEX, a.s. newspaper publishing. THE OUTDOOR ADVERTISING MARKET → → mentation of electronic television audience measurement via ERFLEX, a.s. (48% share) – The company primarily deals RTD d.o.o. (100 %) – The Zadarski List newspaper people meters. with building and operating networks of outdoor advertising publishing. → → TELEPON PLUS, spol. s r.o. (49% share). As regards the outdoor advertising industry in the Czech and navigation spaces, INFANTINFO d.o.o. (0.9%) – Radio operation. → Republic, JOJ Media House, a.s., is a 60% shareholder of the MetroZoom s.r.o. (100% share) – The company sells adver- THE OUTDOOR ADVERTISING MARKET company BigBoard Praha, a.s. Through its companies, it is tising space in Prague metro stations. → the leader in the Czech outdoor advertising market. BigBoard HyperMedia, a.s. (60% share) – The Company and its → Akzent BigBoard, a.s. (100% share) – Through this compa- Praha, a.s., is the owner of business shares in the following following subsidiary companies’ main activities are internet ny, JOJ Media House owns shares in the following companies: companies: marketing, web representations and operation of discount → BigMedia, spol. s r.o. (100% share) – Exclusive selling ads and other portals, → → on the carriers of its parent company and the aforementioned BigMedia, spol. s r.o. (100% share) – Rental of advertising Hyperslevy.cz, s.r.o. (50.5% share), → companies, space of its network. Quantio, s.r.o (66% share), → → → RECAR Slovensko a.s. (100% share) – Advertising in means Czech Outdoor s.r.o. (100% share) – Rental of advertising Hyperinzerce, s.r.o. (100% share), → of transport. space. Programmatic marketing, s.r.o. (100% share), → → → RECAR Bratislava a. s. (70% share) – Advertising in means Český billboard, s.r.o. (100% share) – Rental of advertising Eremia, a.s. (100% share), → of transport in Bratislava, the capital city of Slovakia. space. Hyperinzercia, s.r.o. (SK) (100% share), → → → BHB, s.r.o. (51% share) – Selling ads of a particular MG Advertising, s.r.o. (50% share) – Rental of advertising Slovenskainzercia s.r.o.