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Era 3 · Traffic economics: affiliates and processing

1999–2019the holding company filed for self-administration proceedings…

Beate Uhse

A German company that sold adult products through catalogs and in stores, and from 1999 was publicly listed on the Frankfurt Stock Exchange. By 2005 its revenue had grown to EUR 285 million, after which all of its channels shrank by almost half. In 2017 the holding company filed for insolvency, a fund bought the business in 2018, but in 2019 the new owner turned out to be insolvent as well, and the online business was bought by an outside group.

Founders Beate Uhse (founder of the mail-order business, 1946; died in 2001)
Domains —
adultpublic-companyretaile-commercebankruptcy

In brief

Beate Uhse was a German retail and mail-order business selling adult products. On 1999-05-27 it went public on the Frankfurt Stock Exchange, and the offering at EUR 7.20 brought in about EUR 63.3 million. Revenue grew from EUR 116.4 million (1999) to a peak of EUR 284.8 million (2005), then fell to EUR 103.0 million (2016, per a press retelling estimate), and on 2017-12-15 the holding company filed for insolvency proceedings in self-administration. The annual reports with multi-year summaries for 1999–2011 and the issuer's releases up to 2015 give the segments year by year, and the main conclusion they lead to is an uncomfortable one: all channels fell at once, not only the retail business that the internet supposedly killed.

How it started (the founders)

The company bears the name of its founder. According to the company's own timeline in the 2007 annual report, the founder launched the mail-order business in 1946, opened what the company calls the world's first sex shop in 1962 (the company's self-description, not verified), and in 1999 the company became a stock corporation; the founder died in 2001. Mail order remained the oldest and largest division: a catalog of 150+ pages came out twice a year in five languages under the brands Beate Uhse, Pabo (the Netherlands), and Adam & Eve.

The legal form and the owners before 1999 have not been disclosed, and the IPO prospectus has not been found unverified. The version that the company was founded in 1951 in Hamburg diverges from the issuer's reports (1946, Flensburg) and is treated as a rumor.

By 2007 the group consisted of four segments: Retail (stores), Mail Order (catalog and online), Wholesale (including Scala), and Entertainment (online services, telephony, TV).

Year-by-year timeline

Lesser-known but significant facts

  1. In 2006–2011 all four segments fell almost equally. Retail 86.4 → 47.5 (−45%), Mail Order 113.8 → 62.8 (−45%), Wholesale 54.7 → 29.5 (−46%), Entertainment 16.0 → 9.2 (−42%).
  2. Online within the mail-order segment did not grow in money terms. The online share of Mail Order was 42% (2009), 49% (2010), and 67.2% (2011); in euros that is about EUR 43.7 → 43.6 → 42.2 million, while the paper part accounted for 60.4 → 45.4 → 20.6 million [calculated from the shares, rounded; the 2009–2010 share is by orders].
  3. The main shareholder bought assets in the sell-off. In 2011 Consipio (27.2% of the shares) bought 80% of the Norwegian chain Kondomeriet for EUR 3.0 million with a buyback right (2013–2017), and its subsidiary Bocca bought the Dutch company Sandereijn for EUR 0.9 million with an obligation to source 80% of its goods from the group.
  4. The 2010 loss was largely a paper loss. EBIT of −59.0 million against depreciation and impairment of EUR 36.5 million (2011: 8.5 million), of which 27.1 million were one-off and restructuring effects.
  5. The 2015 forecast was missed. The 2015-03-31 release promised EBIT of EUR 2–5 million; the first half came in at −2.7 and the full year at −13.3; excluding the 14.1 million in one-off write-offs, it would have been about +0.8, which is also below the forecast estimate.

Legend vs. the record

The first growth lever

The lever of the first period was public capital and scale: after the 1999 IPO (about EUR 63.3 million according to the press on the day of the offering), revenue grew 2.4 times in six years and staff doubled. The growth did not come free: in 2001 revenue grew 36% (EUR 163.5 → 222.8 million), while EBIT fell from EUR 13.9 to 10.6 million, so the margin went from 8.5% to 4.8% [calculation]. Which acquisitions and channels drove the growth of 1999–2005 is not stated in the documents we read unverified.

The paired story

The pair: Private Media Group (history-private-media-group). The lines below have been checked against the pair's dossier.

Parallels today (projects from the catalog)

What a builder can take from this in 2026

  1. Measure channels in absolute money, not in shares. At Beate Uhse, online grew from 42% to 67%, while the money stood still (around EUR 42–44 million). Before you tell the story of a move to online, build a table of revenue and margin by channel.
  2. Closing loss-making locations does not save a channel by itself. The closures of 22 (2011), 10 (2012), and 16–21 (2015) stores went hand in hand with Retail revenue falling from EUR 57.2 million (2010) to 44.3 million (2014); the segment's profit in the first half of 2014 (EBIT of EUR 0.8 million) turned into a loss a year later. For SaaS: loss-making plans and channels get cut on unit economics, but together with a plan for where growth will come from.
  3. Do not promise numbers you cannot see in a quarterly breakdown. The EBIT forecast for 2015 was +2 to +5 million; the actual result was −13.3 million. Keep the forecast narrow and revise it against each quarter's actuals.
  4. Debt on a shrinking business is a countdown. A EUR 30 million bond at 7.75% means about EUR 2.3 million in interest a year [calculated; the coupon is an estimate] against 2014 EBIT of 5.0 million; three years later the debt became the reason for the filing. Do not take on a fixed coupon against a channel that is itself contracting.
  5. A brand valuation is not brand revenue. A EUR 33.4 million valuation in 2014 versus about EUR 5 million in revenue under the new owners in 2019 estimate. Before buying, look at the customer base, the domain, and the logistics.
  6. Watch related-party deals in a restructuring. The buyer of the assets in 2011 was a shareholder with 27% and a participant in someone else's dispute. Check who stands on both sides of the deal.

Discrepancies and what we could not verify

Sources (primary first)

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The same thing, about today

The same breakdowns, but of projects launching right now: what the product is, where the first users came from, how they charge. The card is free, the full dossier is $5 (the dossier itself is written in Russian).

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