One and a half billion were taken out of the Central Media Group, workers' wages were cut: Such is a left-liberal company management
WHILE THE OWNERS OF THE COMPANY HANDLED ANOTHER MILLION BILLIONS, EMPLOYEES FACED ON WAGE REDUCTION, SO THEY ARE NOW ABLE TO LET IN FOR LESS MONEY.
While referring to the coronavirus epidemic, the Central Media Group, which also owns 24.hu, ordered a temporary salary reduction in March, while the owner of the private limited company grabbed a HUF 1.5 billion dividend from the company.
The owners of the company received a dividend of about one and a half billion forints from Central Médiahmä Zrt., While ordering a reduction in the salaries of the employees, our newspaper learned.
Central's portfolio includes 24.hu, Story, Nők Lapja, Best, Startlap, Surprise, Color RTV, NLC, Marie Claire, Vezess.hu and several other internet and printed press products. At the end of March 2020, CM Investment Kft., The sole shareholder of the private limited company, decided to pay a dividend of HUF 1.15 billion to its free profit reserve supplemented by the after-tax profit of the previous business year. The owners similarly withdrew the dividend from Central Digitális Média Kft., From which approximately HUF 390 million was pumped out of the free profit reserve supplemented by the after-tax profit of the previous business year. Thus, the owners took out a total of HUF 1.54 billion from the two companies.
The payment of the dividend is interesting in the light of the fact that Média1.hu was informed earlier: on March 23, Zoltán Varga, the owner-CEO of the Central Media Group, announced by e-mail the reduction of operating costs, and two days later the temporary reduction of working hours for all employees. ordered, in connection with which wages were also reduced. Varga then put it in an e-mail sent to employees: the decision is aimed at maintaining the publisher's operations so that the Central Media Group can return to growth once the epidemic has receded. That is, he made the decision by referring to the coronavirus.
The cost reductions affected both the production and marketing costs of print and online press products, as well as the “rationalization” of the appearance of several print magazines. Media1 was informed in March that production and marketing costs would be reduced by at least a quarter uniformly for all publications. Employees ’working hours were temporarily reduced from 8 hours to 6 hours and the temporary measure was planned for about three to four months.
Zoltán Varga told the portal: as a responsible owner, the aim is to maintain the operation of Central, because this way the company can survive the crisis and keep jobs in the publishing house. "We need to introduce cost reductions now so that our opportunities are not narrowed down drastically," Varga said. He added: these are painful but sensible steps.