With the approval of the Supervisory Board, the Management Board of TOMORROW FOCUS AG today accepted an offer from Focus Magazin Verlag GmbH, a wholly-owned subsidiary of Hubert Burda Media Holding Kommanditgesellschaft, for its 50.39 percent stake in Playboy Deutschland Publishing GmbH, which combines Playboy’s print and online business in the German language. The divestment will take effect on 1 October 2010.
The agreed purchase, based on an independent valuation, was EUR 6.2 million. This will provide TOMORROW FOCUS AG with recognised non-recurring income of about EUR 5.5 million in the fourth quarter 2010. The valuation figure reflects the recent ten-year extension of the company’s licence.
Prior to the sale, Playboy Deutschland Publishing GmbH was a fully-consolidated member of TOMORROW FOCUS AG. In the financial year 2009, it achieved revenue of EUR 13.0 million and EBITDA of EUR 0.1 million. The corresponding figures for the first half of 2010 were EUR 5.6 million for revenue and EUR 0.4 million for EBITDA.
The divestment forms part of the new corporate strategy adopted by TOMORROW FOCUS AG in spring of this year. The company now intends to focus on purely internet-based activities as a way of further optimising its portfolio.
TOMORROW FOCUS Media GmbH, a wholly-owned subsidiary of TOMORROW FOCUS AG, will continue its role of providing online marketing services for playboy.de.
As a result of the transaction, Focus Magazin Verlag GmbH will hold 100 percent of the shares in Playboy Deutschland Publishing GmbH. Jürgen Feldmann will continue as managing director.
The deal is still subject to approval by Germany’s competition authorities.