Bonton Media Group Seeks Strategic Partnership Amid Growth

In a significant development for the Czech media landscape, Bonton Media Group is actively pursuing a strategic partnership, with company executives confirming they are in the process of selecting financial advisors to guide this initiative.

According to Mick Hawk, Bonton's President and CEO, the company is primarily interested in finding an industry partner, though a complete sale remains a possibility with the right offer. "We regularly receive interest in various segments of our business, but our market dominance across multiple sectors is what makes Bonton particularly valuable," Hawk explained.

The media conglomerate has recently undergone substantial restructuring, reducing its portfolio from 20 to 12 companies by divesting smaller operations or merging complementary businesses. This streamlining effort has positioned Bonton for its current phase of growth.

The company is experiencing unprecedented success, partly attributed to the robust 6% expansion of the Czech economy. "We're seeing tremendous growth driven by the multiplex cinema boom, DVD market development, and publishing phenomena like the Harry Potter series," noted Hawk.

From its humble beginnings as a pioneer private music enterprise eleven years ago, Bonton has diversified into multiple media segments including publishing, video distribution, film production, radio broadcasting, and digital platforms.

The publishing division has achieved remarkable success with the Harry Potter franchise, with the first three books recording advance store orders of 50,000 copies or more. Meanwhile, the film and video operations, which generate 44% of the company's revenue, are benefiting from increased cinema attendance as multiplex theaters expand throughout Prague.

Bonton has also established dominance in media duplication, controlling over half the market through its facilities at the Zlin film studios.

Financially, the company reported $40 million in revenue and $2 million in profits for 2000, representing a 20% increase from the previous year. Similar growth is projected for 2001, with expected pre-tax earnings between $7-8 million. Based on these projections, Hawk values the company at more than $100 million.

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