Nordic media major Egmont has announced a significant change in its group management structure. Analysts call the initiative vigorous as new CEO, Steffen Kragh only took up his position three weeks ago.
Kragh says the changes are necessary to increase the company's profitability and re-focus the international business. Denmark's 123 year-old media giant, which spans such diverse markets as magazines, comics, books and preschool products to film (including Nordisk Film), TV, animation, video, cinemas, games and online services, has always boasted a strong turnover, but recent years have seen a downturn in its fortunes.
Egmont's organisation will be streamlined into six business areas: Magazines, Kids & Teens, Books, Entertainment, Nordisk Film, and International. As a consequence, Egmont appoints a new Group Management for Egmont International Holding, which will include several of the current heads of Egmont's operating companies; Steffen Kragh (President and CEO), Erik D Jensen, Soren Fogtdal, Kjeld Lucas, Tommy Melle, Kenneth Plummer and Soren E Jakobsen.
"The management will also have an operational responsibility now," comments Kragh, and the purpose of the streamlined structure is to strengthen Egmont's focus on: expansion in the Nordic home market as well as internationally; and to expand the company's media position by utilising new technology.
When Kragh was appointed new CEO in July, it was expected that he would trim the organisation, which has 4,400 employees in 24 countries. The appointment, which came as a surprise to some observers, has been met mixed feelings in the industry. In recent years Egmont has seen losses in all its online activities as well as both TV and film, while remaining robust within the printed media sector. The company had a 4.6% growth in turnover in 2000.