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.
Information agency Credinform represents the ranking of the largest Russian publishing houses. Enterprises with the largest volume of annual revenue (TOP-10) were selected for the ranking, according to the data from the Statistical Register for the latest available periods (for 2015 and 2016). Then they were ranked by net profit ratio (Table 1). The analysis was made on the basis of the data of the Information and Analytical system Globas.
Net profit ratio (%) is calculated as a relation of net profit (loss) to sales revenue and characterizes the level of sales profit. There is no normative value for the indicator. It is recommended to compare enterprises of one industry, or change of the ratio in the course of time of a certain company. A negative value of the ratio indicates a net loss. A high value shows an efficient operation of an enterprise.
The experts of the Information agency Credinform, taking into account the actual situation both in the economy as a whole and in the sectors, has developed and implemented in the Information and Analytical system Globas the calculation of practical values of financial ratios that can be recognized as normal for a particular industry. For publishing houses the practical value of net profit made from 7,78% in 2016.
For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention to all combination of indicators and financial ratios.
|Name, INN, region||Revenue, mln RUB||Net profit, mln RUB||Net profit ratio, %||Solvency index Globas|
| IZDATELSTVO AST LLC
Participates as a defendant in arbitration proceedings, there are unclosed writs of execution.
|4 615,6||4 405,7||330,0||1 630,9||7,15||37,02||550 Insufficient|
| YAUZA-KATALOG LLC
|3 698,8||8 844,5||400,4||2 964,2||10,82||33,51||205 Strong|
| IZDATELSTVO PROSVESHCHENIE NJSC
|11 107,9||12 646,6||5 680,5||2 505,0||51,14||19,81||249 Strong|
| KOMMERSANT NJSC
|2 515,1||3 087,6||30,3||376,0||1,20||12,18||185 High|
| IZDATELSTVO E LLC
|7 231,4||9 001,8||717,3||663,3||9,92||7,37||161 Superior|
| IZDATELSTVO YAUZA LLC
|12 622,0||14 700,3||860,8||1 067,5||6,82||7,26||166 Superior|
| YAUZA-PRESS LLC
|13 469,1||17 472,5||815,2||1 167,6||6,05||6,68||169 Superior|
| PUBLISHING HOUSE KOMSOMOLSKAYA PRAVDA NJSC
|3 656,4||3 221,3||25,5||75,9||0,70||2,36||216 Strong|
| AKTION-PRESS LLC
|2 856,0||3 320,7||0,4||26,7||0,01||0,80||254 Medium|
| HEARST SHKULEV MEDIA LLC
|3 598,3||3 839,9||-10,8||-87,8||-0,30||-2,29||258 Medium|
|Total by TOP-10 companies||65 370,6||80 540,8||8 849,5||10 389,4|
|Average value by TOP-10 companies||6 537,1||8 054,1||885,0||1 038,9||9,35||12,47|
|Industry average value||19,8||22,5||-1,2||1,8||-6,11||7,78|
The average value of the net profit ratio of TOP-10 enterprises is much higher than the industry average. One company from the TOP-10 list increased revenue and net profit indicators in 2015 — 2016 compared to previous periods (marked with green filling in columns 2 — 5 of Table 1). Other companies decreased revenue or profit indicators or have a loss (marked with red filling in columns 2 — 5 of Table 1).
The industry average indicators of the net profit ratio were below the practical value of 2016 over the past 10 years, with a downward trend (Picture 2).