Trends in publishing activities
Information Agency Credinform presents a review of trends in publishing activities.
The publishing houses with the highest volume of annual revenue (TOP-10 and TOP-1000) have been selected for the ranking, according to the data from the Statistical Register for the latest available accounting periods (2015 and 2016). The analysis was based on the data from the Information and Analytical system Globas.
It is an indicator of fair value of corporate assets that is calculated annually as assets on balance less company’s liabilities. Net assets value is negative (insufficiency of property) if liabilities are larger than the property value.
|No. in TOP-1000||Name, INN, region||Net assets value, million RUB*||Solvency index Globas|
|1.|| Prosveshcheniye Publishers NJSC
|4 388,3||9 020,7||1 133,2||249 Strong|
|2.|| AST Publishing House LLC
The company is a defendant in arbitration proceedings and has unsatisfied writs of execution.
|416,4||746,0||4 952,6||550 Insufficient|
|3.|| Publishing House E LLC
|3 172,0||3 889,3||4 225,0||161 Superior|
|4.|| ARGUMENTY I FACTY NJSC
|1 864,0||2 080,1||2 419,4||182 Strong|
|5.|| YAUZA Publishing House LLC
|482,9||870,8||2 027,8||166 Superior|
|996.|| Publishing House Interview LLC
|997.|| Editorial Office of the Kultura Newspaper PJSC
|998.|| Business News Media NJSC
|999.|| INEWS LLC
|1000.|| Company Afisha LLC
*) — growth or decline values compared to prior period are highlighted green and red respectively in columns 4 and 5.
In 2016 sales revenue of 10 industry leaders amounted to 45% of total revenue of TOP-1000 companies. This is an indicator of a relatively high level of monopolization within the sector (Picture 2).
In general, revenue tends to decline (Picture 3).
Profit and loss
In 2016 profit of 10 industry leaders amounted to 66% of total profit of TOP-1000 companies (Picture 4).
Average profit values of companies of the sector within a decade tend to decline (Picture 5).
Average profit values of TOP-1000 companies for three years tend to decline, as well as average loss value (Picture 6).
Key financial ratios
During the last decade industry average values of liquidity coverage ratio were within the recommended value — from 1,0 to 2,0 (Picture 7). In general, the ratio value tends to increase.
Liquidity coverage ratio (a ratio of current assets to current liabilities) reveals the sufficiency of a company’s funds for meeting its short-term liabilities.
A calculation of practical values of financial ratios, which might be considered as normal for a certain industry, has been developed and implemented in the Information and Analytical system Globas by the experts of the Information Agency Credinform, having taken into account the current situation in the economy as a whole and in the industries. The practical value of liquidity coverage ratio of publishing houses amounted from 0,75 to 3,33 in 2016.
The return on investment ratio (Picture 8) was not stable during the decade, tending to decrease. It is a ratio of net profit to shareholders’ equity and noncurrent liabilities, and it demonstrates benefit from shareholders’ equity engaged in business activity and long-term raised funds of the company.
Assets turnover ratio is a ratio of sales revenue to average total assets for the period, and it measures resource efficiency regardless of the sources. The ratio indicates the number of profit-bearing complete production and distribution cycles per annum.
During the decade, this activity ratio tended to decrease in general (Picture 9).
Companies that specialize in wide-profile publishing activities have the largest share in total revenue of TOP-1000 companies (Picture 10).
77% companies of TOP-1000 are included in the register of small and medium-sized businesses of the Federal Tax Service of the Russian Federation, among them 35% are micro enterprises, 40% are small businesses, and 2% are considered medium-sized businesses.
Key regions of activity
TOP-1000 companies are unevenly located throughout Russian territory, and are registered in 71 region (Picture 11).
Financial position score
Assessment of financial state of TOP-1000 companies indicates that most of the companies have an average financial standing (Picture 12).
Solvency index Globas
Most of TOP-1000 companies have got a superior, high, strong and medium Solvency index Globas,that indicates their capability to meet liabilities timely and in full (Picture 13).
Therefore, a comprehensive assessment of the largest publishing houses, that considers key indexes, financial figures and ratios, is indicative of negative trends in the sector.