Interview
“The first consolidation drawn up in 1989 was nothing short of catastrophic”
A quiet force
Behind the scenes
Christophe Convent (67), the group’s Secretary-General, is stepping down after nearly forty years with the company. Frits Campagne, former CEO of DPG Media Netherlands, conversed with him.
Christophe, what does a Secretary-General do?
“That varies from company to company. I’ve always kept my distance from operational matters and focused mainly on non-recurring issues. These include acquisitions, of course, but also the group’s structure from both a financial and tax perspective, as well as oversight of legal matters, from contracts to disputes.”
How did you and Christian get started together?
“I began my career at an American investment bank, in Brussels and London, where I was often involved in refinancing companies in difficulty. In 1987, my father-in-law – Christian’s father – asked me for advice, as the businesses weren’t doing well. One thing led to another and I started in September 1987. At the time, Christian was still in the US completing his MBA at Duke University, and he joined us the following year.”
What saved the company in the early 1990s?
“At that time, it was not really a company but a patchwork of businesses, with no structure whatsoever. There was no management reporting, let alone consolidated financial statements. The first consolidation drawn up in 1989 was nothing short of catastrophic: deep losses and far more debt than equity.
“We had to restructure very rigorously and focused entirely on the two main titles: Het Laatste Nieuws and Dag Allemaal. By 1991, we were back in the black, which allowed us to fundamentally redesign the group’s shareholder structure the following year. That is when De Persgroep was created as a holding company above the publishing businesses.
“Gradually, we were able to consider acquisitions. After some disappointments – Het Volk and Gazet van Antwerpen, to name two – we succeeded in 1998 in increasing our stake in VTM to 50%, in a joint venture with Roularta. That was the first major step in the further expansion of the group.”
How did acquisitions come about? Did you draw up a list, or did they present themselves?
“In most cases, these opportunities presented themselves naturally, and they were almost always companies in difficulty. We worked very systematically and always relied on external professionals to map out the risks as thoroughly as possible. Piet Vroman was responsible for the due diligence, I usually handled the negotiations, and once the acquisition was completed, Christian and his team were ready to integrate it into the group as quickly as possible. A strong focus on execution – I’m sure you recognise that.”
What role did passion for media play, and how did that combine with the business side?
“Passion for media has always been, and remains, the driving force behind our company. Credit where credit is due: Christian embodies that passion in everything he does. What is exceptional is that he combines this with outstanding entrepreneurial qualities. He’s always looking for the best talent to surround himself with, across all parts of the company.”
“Any next major step would have to take place in another language area”
Why did De Persgroep expand into the Netherlands, and how did it grow so strongly there?
“We started in Amsterdam in the autumn of 2002, because the opportunity with Het Parool presented itself there. This city newspaper wasn’t very large, but it did allow us to learn a great deal about the Dutch media market. And let’s be honest: it is not far away, the language is almost the same, and it is a pleasant place to do business – not least because the market is nearly three times the size of the Flemish one.
“With that first acquisition, we also established our reputation as a media company in the Netherlands. In 2005, Radio Noordzee followed, which soon became Qmusic, and in 2009 PCM, the publisher of AD, de Volkskrant, Trouw and, at the time, NRC Handelsblad. That company was on the brink of bankruptcy. We gained control by carrying out a major capital increase to prevent insolvency. It was, in fact, quite a bold transaction, but it truly put us on the map in the Netherlands – we suddenly became the market leader in the newspaper sector.”
Which transactions are you most proud of?
“I still look back very fondly on the one involving Het Parool.Not only because it was our first acquisition abroad, but also because we met such wonderful people there who played a key role in our further growth. Isn’t that right, Frits?
“But PCM is something I am particularly proud of, because it was such a complex transaction, both legally and financially. The restructuring of PCM required blood, sweat and tears, but it laid the foundation for DPG Media’s success in the Netherlands.”
Are there any transactions you regret?
“No, I don’t regret any acquisitions, fortunately, but there is one I would approach differently today. With VNU Media, we effectively invited ourselves – or rather imposed ourselves. In hindsight, that wasn’t my best experience, and not something I’d repeat.”
Were there also major opportunities that were missed?
“I see only one, and surprisingly that’s RTL Nederland. In 2021, that transaction failed in a rather painful way – at least for us – but at the end of 2023 we managed to redeem ourselves by approaching the negotiations in a completely different way. Even then, it still took another year and a half to obtain approval from the competition authorities.”
RTL Nederland was the latest acquisition and also the largest. Does that mean we’ve come full circle? Or is there another major step ahead for the company?
“It’s true that RTL is by far the largest transaction DPG Media has ever carried out. But it’s also a highly profitable company, with strong brands and a great deal of human talent. Now that we’re also active in audiovisual media in the Netherlands, it does feel like we’ve come full circle – at least within the Dutch-language markets. Any next major step for DPG Media would have to take place in another language area.”
Would you describe DPG Media as a typical family business? Do you think the company will ever be sold?
“DPG Media may have a closed shareholder structure, but it’s anything but a typical family business. Christian, Piet and I have always wanted to ensure that the group is run as if it were a listed company. That’s why we have been publishing an annual report for the last 25 years.
“In 2000, we briefly considered listing the company, but the dotcom crisis put an end to those plans. And it’s a good thing it did, because the financial markets wouldn’t have understood why we kept acquiring loss-making publishing companies.
“I consider a sale of DPG Media highly unlikely; the ties to the company and its media brands are simply far too strong.”
