Tamedia with profit decline in the past year

The reason for this was the sharp decline in printed advertising, the Zurich-based company announced in a press release on Tuesday. Tamedia also had to make a value adjustment as a result of the Publicitas bankruptcy.

However, the Group had benefited from various special accounting effects in the previous year. Excluding all special effects, the operating result was slightly below the previous year, Tamedia wrote.

By contrast, sales climbed by 3.7 percent to CHF 1.01 billion. The media company owes this to the takeovers of the advertising marketing companies Neo Advertising and Goldbach (the latter consolidated since September), Basler Zeitung and the continuing prosperity of its commercial digital offerings.

The reported figures are slightly below ZKB's estimates. Zürcher Kantonalbank had forecast sales of CHF 1.03 billion and EBIT of CHF 138.1 million.

Advertising revenue from printed newspapers and magazines fell sharply again in 2018. Overall, revenue in the Paid Media segment fell by 5.7 percent to CHF 569.6 million. The operating result suffered even more, falling from CHF 54 million to CHF 18 million.

The bankruptcy of the advertising agency Publicitas, closure costs for the printed edition of the French-speaking Swiss newspaper Le Matin and the lower result of the newspaper printing centers.

Commuter media and marketing fared better. Here, in addition to 20 minutes The sales of the newly acquired pure advertising marketing companies Neo Advertising and Goldbach (primarily video) were also included. Overall, revenue increased by 33.7 percent to CHF 206.4 million. EBIT improved by CHF 3 million to CHF 51 million.

However, the Marketplaces and Ventures business division was once again the main organic growth driver in 2018. Here, sales increased by 7.3% to CHF 252.8 million, while EBIT improved disproportionately by CHF 11 million to CHF 70 million, which corresponds to a margin of 27.8%. According to the press release, the Jobcloud, Homegate, Olmero and Doodle platforms performed particularly well.

All digital offerings together now contribute over 43 percent of Tamedia's revenues and 86 percent of its EBIT. Over the next three years, Tamedia intends to strengthen the digital part of its core business of journalism and invest CHF 30 million in this area. Two thirds of this will be invested in the editorial area of paid media and one third in the commercial area. The aim is to launch new digital offerings that meet the needs and habits of users.

The entire company organization is also to be reviewed. In this way, the Group aims to create optimal conditions for transparency and growth in all business areas. The corresponding decision-making basis is expected by the summer.

As usual, Tamedia's management will not provide a concrete business outlook for the current year. (SDA)

Photo: hae/advertising week