MVB: New markets develop
Business fields in the USA, Brazil and Mexico contribute to the profitability of the German technology and information provider | acquisition of the Pubeasy UK ordering system from Nielsen BookData
Investments are beginning to bear fruit: faster than planned, the fledgling international business of the German technology and information provider MVB at its locations in New York, São Paulo and Mexico City is boosting the company's financial performance. The division is already contributing to the positive operating result. In particular, revenue and profit from the two ordering platforms Pubnet and Pubeasy US, which MVB acquired from the NPD Group in 2017, are ahead of plan. As part of its internationalization strategy, MVB has acquired Pubeasy UK, a business in which MVB closely collaborated with Nielsen BookData since the technological redevelopment of the system in 2021, in full from Nielsen BookData with effect from 01.03.2022 – the deal further includes the services Nielsen EDI and TeleOrdering. The three platforms, which transmit order data between publishers and bookstores, complement MVB's existing portfolio of ordering systems in Germany and the United States. The wholly owned subsidiary MVB Books UK Limited was founded for the further operation of the acquired services at the new MVB location in London.
"Since 2016, we have been gradually building up our international business. In doing so, we are relying on a mix of organic growth and acquisitions. On the one hand, we are exporting the technology of the Verzeichnis Lieferbarer Bücher (VLB), the German books in print catalogue, under the Metabooks brand to markets with the appropriate framework conditions. On the other hand, we buy existing business that fits in with our existing activities, such as in the United States or now in the UK. With this parallel approach, we can grow sustainably and broaden the financing of our activities," says Wei Dai, Director Business Unit International at MVB.
Since 2019, MVB has increased revenues and earnings in the United States, Brazil and Mexico by a total of 17.6 percent. At the end of the last fiscal year, international business accounted for 15.6 percent of total revenue and contributed 16.8 percent to total earnings.
Siegmar Mosdorf, Chairman of the Supervisory Board of Börsenverein des Deutschen Buchhandels Beteiligungsgesellschaft mbH (BBG), which controls the holding company for the German Publishers and Booksellers Association's business activities, adds: "In addition to the new development of VLB-TIX technology, the infrastructure for marketing new books, and the ongoing further development of VLB, internationalization is an important task for MVB. After all, it ensures that the essential infrastructure offerings of our industry remain fit for the future. The consolidating German-language market, with its rising costs and falling revenues, cannot guarantee the necessary financing to a sufficient extent in the long term. That is why it is right to take countermeasures early on and tap new sources of revenue. As the Supervisory Board, we will ensure that the necessary investments are made at an acceptable level of risk. The development of the US business is an example of how MVB can acquire new customers and significantly increase sales and operating earnings within a short space of time by acquiring profitable businesses with a clearly defined product strategy. Consequently, we welcome the current expansion into the UK market, where 2021 sales have been the highest since 2011."
"Nielsen BookData's ordering systems are a mature and highly profitable business. They have a broad customer base, deep market penetration and high brand awareness. As the operation of the services and the respective business models are almost identical to our US business, we are well positioned for a smooth transition and successful continuation of the platforms," said Wei Dai.
- Press release: Pubeasy: Major Technology Upgrade Completed
- Press release: US Book Trade: Record Growth in Retailers Joining Pubeasy
Technology and information provider MVB makes books visible. Major platforms, based on international metatdata standards, enable publishers and bookstores to promote their products successfully and efficiently in their home markets and abroad. Editorial and advertising formats as well as face-to-face networking give orientation in different book markets. In close cooperation with customers and market players from all areas of the book industry, the teams located in Frankfurt am Main, Mexico City, New York and São Paulo continuously work on innovative Infrastructure solutions for the book trade of the future.