High-speed rail media tender is accused of winning the company's deep losses

"Last year we signed a total of 480 million contracts with Bureau, with a loss of more than 100 million." Silent for a moment, Zhiqiang finally told the 21st century economic reporter this embarrassing data.

Zhiqiang is the chairman of Yongda Media, the former is the outdoor media advertising business, the 2012 Railway media market tender, Zhiqiang teeth spent nearly 500 million won high-speed train and station billboards and other high-speed rail media resources, a leap into high-speed rail commercial advertising the largest operator.

However, after only one year, Zhiqiang was dumbfounded. Zhiqiang admission the experience of high-speed rail media is only a small microcosm of the whole industry, like Zhiqiang, other advertising media companies that won the bid at the end of 2012 have complained to reporters that the year's operation barely balances the balance, the more investment, the more money, the most important reason is "the original expectations are too high, the bid price is inflated." ”

"The railway company is no doubt the golden goose. "said a senior executive at a listed company that has been involved in high-speed rail advertising operations.

A new bullet train.

Spotlight back to Yongda media.

Focus on it, not only because it has become the railway media market, the largest advertising operators, more importantly, as the railway market reform attempt to the new road outside the media admission, Yongda media access to the railway market is quite representative.

Yongda Media is a company founded in 1995, the past more than 10 years of deep highway outdoor advertising, in the field of outdoor advertising has considerable influence.

Before 2011, Yongda Media has not been involved in the railway media market, although Zhiqiang is convinced that with the development of high-speed rail in China, the high-speed rail media market will be the most significant advertising market, suffering from the closure and monopoly of the railway, the lack of resources of the road outside the media can not intervene. Zhiqiang also had no connections to the railway system and had been wandering outside.

The opportunity opens in 2011.

Sheng, the new minister of the Ministry of Railways, pushed the railroad market. October 30, 2011, the Ministry of Railways in 2012 a year of high-speed rail commercial advertising operation rights of the auction, a counter to the previous one to invite cooperation in the form of the object, adopted a semi-open bidding mode.

At that time, the open bidding of the high-speed train a total of more than 400 groups of vehicles, the final Chinese railway media train accounted for 70%, Yongda Media and the group of Austrian gods divided the remaining 30%. Unlike the new admission Yongda Media, Huatie and Austrian gods are the companies that have been deeply in the railway media market for many years.

This test water, so that Yongda media for the first time to contact the railway, railway market-oriented reform, also deepened the determination of Zhiqiang deep rail, so at the end of 2012, the high-speed rail commercial bidding meeting, Zhiqiang spent more than 200 million yuan layout three longitudinal three horizontal main line, got the Xi ' an, Wuhan and Guangzhou Iron and other four bureau many high iron resources , winning the bid of the HSR emu less than 40%. In addition, more than $200 million will be the national high-speed railway site 95% of the electronic Information screen revenue bag. "The contract with the railroad Company, the money that gives them reaches 480 million yuan." ”

December 28, 2013, West Treasure, Xiamen deep, such as 6 high-speed lines opened at the same time, a one-time open mileage reached 2258 kilometers, Zhiqiang and spent a large price of the mansion deep and other lines netted in their own network. At this point, Yongda media coverage of more than 30 lines, more than 450 groups of high-speed rail vehicles, more than 800 trips. NET to do the Beijing-Shanghai, Beijing-Guangzhou, Beijing-Kazakhstan, Kazakhstan, Shanghai-Han Rong, xia-shen, Shanghai-Kunming, to the PU, Xi, Longhai, Beijing-stone, such as high quality railway line, really become the largest high-speed rail commercial operators.

More than 100 million losses in the first year

Newcomers to become the industry leader's happiness does not last long.

2013 after the end of the reckoning, Zhiqiang dumbfounded. Loss of more than 100 million yuan. Facing the reporter repeatedly cross-examine, Zhiqiang at first strong outfit optimism, finally had to stare at the reporter half ring, silent for a while, admit really lost, and the loss is not light.

According to the high-speed railway commercial advertising management contract, Yongda Media, China Railway media and other companies generally have a bid to obtain the line and EMU three years of operation rights. Three years, regardless of the advertising operations, to the auction price to the bureau to pay the operating costs, channel fees.

In other words, even if the loss, Zhiqiang should be handed over to bureau 480 million yuan a year, a point can not be less.

How can Yongda media be so lucky? Zhiqiang explained to reporters that the most important reason is that over the past year, the three public regulations have been tightened, prohibition is also issued, liquor industry overall sales seriously decline, the major liquor companies have reduced performance expectations, but also directly affect the major liquor companies marketing enthusiasm, advertising investment has been slashed.

Liquor-making enterprise is the largest high-speed rail advertising customers, accounting for the total number of high-speed rail advertising 70%, when liquor advertising cut sharply, YONGDA high-speed rail advertising is inevitably the biggest impact. Although the company later actively expand the tourism, hotel, cosmetics advertising market revenue, but the latter's acceptance of high-speed railway is still in the initial stage, such as liquor is not so mature, it is difficult to make up for the lack of liquor sources of income, which caused large losses.

Zhiqiang have to admit that the loss of another important reason is too optimistic about the market forecasts, the risk of insufficient estimates, resulting in the auction plane ads and platform LED screen operating right to bid too high, will cause high costs, the loss of the situation intensified.

In the view of the peers, Zhiqiang's huge loss is also due to the front has been too long. Yongda Media is too impatient, not only the high-speed rail train, the station and so on most of the resources to win, but also to maintain the high speed market front. The investment is too large.

So he was a huge loss. Zhiqiang admits that the past year has been hard.

A fellow Mingxiang with pity

In fact, in addition to Zhiqiang, other companies entering the high iron media market are very sad. "The past year has also been unusually difficult, and 2014 years of pressure will double," said Ming, vice president of China Iron media, another high-speed rail advertising operator. ”

At the end of 2012, the Chinese rail media won the bid for less than 70% of the commercial media resources. The Beijing-Shanghai High speed railway with exclusive monopoly Beijing-Kazakhstan high-speed rail, the Canton Railway Group Gingkenggautie, the Guangzhou-Shenzhen high-speed rail and the Shanghai Bureau, Chengdu Bureau of all lines of high-speed rail train media resources, to achieve the Beijing-Shanghai high-speed railway (except Jinan Bureau 3 train), Hopewell high-speed railway, Chengdu-Chongqing line, Han Yi Line exclusive monopoly. However, the price paid by the Chinese railway media is nearly 400 million yuan, which is about one-fold less than 200 million.

The operation of high prices to operate a year down, Ming revealed that in the first half of 2013, the Chinese iron media was very miserable, so the second half hurriedly adjust the strategy, adjust customer goals and services, finally in the second half of 2013 difficult to reverse the decline. Revenues have just been maintained on the balance line and there is no profit at all.

China Railway media no loss or profit? Ming may not be telling the truth. A senior media executive who declined to give his name in railway advertising has told reporters that the entire railway media company should lose about 400 million yuan in 2013, and that the greater the cost, the greater the losses.

Reporters immediately to other operators of high-speed rail media to understand the situation, a number of companies insist that although no money, but also did not lose much. When it comes to specific data, companies don't talk about it.

There are still traces of real data. Some of the paper advertising on the high-speed train is held by the "companion" of the Austrian media, and the company's revenues are all contained in the "33 media" report of Hong Kong listed companies. The reporter read 33 media in the first three quarters of 2013 earnings, earnings revealed that "travel companion" advertising revenue contribution to the company's flat advertising revenue of 90%, and the first three quarters of the company's flat advertising revenue for 81.5 million yuan. The advertising revenue of "companion" is about 73.35 million yuan.

A senior media executive told reporters that according to the original bidding conditions, the price of the magazine for the EMU passenger trains was at a reserve price of 35,000 Yuan/group/year for each magazine. At present, the number of EMU is 700 groups, then participate in the bidding of the magazine advertising media, each year on the EMU expenditure of at least 24.5 million, with the high-speed train set the density of EMU, the number of EMU increased, the media spending more.

This is only to bureau's operating channel fees, plus printing fees, the operation of a magazine editing, purchasing and other costs, including taxes and marketing, and so on, a magazine issued 300,000 copies of the car operating costs at least 75 million yuan.

In this way, "travel companions" may not be profitable, the role of the Austrian media here is also very embarrassed, dilemma. An unnamed high-speed rail media executive told reporters that, including the company, now all high-speed rail advertising operators are deeply regret overestimating the high-speed rail market, man-made false, leading to the bitter fruit now.

In fact, the potential of the high-speed rail market has not yet been tapped, the market has not recognized enough, and it is still nurturing, but last year too many companies have been irrational in the market and driving up the price of high-speed rail advertising, leading to the current situation.

The executive believes that if all operators lose money, the industry will be difficult to sustain, and eventually the railways will not be able to really get revenue, but only to obtain the "proceeds" of the book. He said the railway companies should lower their expectations in moderation and help the media operators who are admitted to tide over the difficulties for subsequent development. "The railway bureau should not goose the eggs. ”