Nextmedia ar cover 21june op.co

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Next Media Limited annual report 06 07
Chairman’s Statement (continued)
“In this Age of the Information
Superhighway, we are committed
not only to enriching the content
of our print publications but
also to devoting resources to the
development of on-line media,
both in terms of content and
advertising.”
As competitors have found with Taiwan Next
Magazine, long traditions and entrenched readership
make it diffi cult for Taiwan publications to imitate
this fresh approach. Taiwan Apple Daily has therefore
become one of the most widely read newspapers
in Taiwan with an average daily readership of 2.60
million in 2006 and an average daily circulation
of 517,000 according to AC Nielsen Taiwan and
ROCABC. This has been achieved after being in the
market for only three years even when we have
increased the cover price in September 2005 to
NT$15, which is NT$5 more than its competitors.
As a result of the strong circulation numbers, robust
advertising revenue and the increased cover price,
Taiwan Apple Daily was profi table for the full fi nancial
year 2006/07.
Stability and Dynamism
Clearly, the Taiwan market still has signifi cant upside
for Next Media in terms of circulation revenues,
advertising income and project earnings. We are
much encouraged by our progress thus far in view
of slower economic growth as a result of the island’s
political instability in the past year.
Naturally, there are cyclicality in all markets. In 2006,
the squeeze on credit card risk in Taiwan impacted
bank advertising, consumer spending and retailer
income. These factors, combined with an antigovernment
corruption movement that began in May
2006 and fears about global warming that affected
apparel advertising, resulted in a temporary decrease
in advertising spending. Yet we are confi dent that the
coming year is likely to see new positive factors come
into play, such as the economic stimulus that usually
precedes a presidential election and the fading effect
of the credit card squeeze.