Investments hit profits at AZ Medien
The AZ Medien Group suffered a sharp drop in profits in 2007, but was able to slightly increase its operating revenue. Strategic investments such as the launch of the *Sonntag* and the acquisition of the *Basellandschaftliche Zeitung* led to the drop in profits, the media company announced.
The AZ Medien Group suffered a slump in profits in 2007, but was able to increase its operating income: Group profit fell by 24.4 percent to CHF 10.6 million. Operating income rose by 1.6 percent to CHF 203 million. Strategic investments such as the launch of the Sonntag title as the seventh edition of the Mittelland Zeitung (MZ) association and the purchase of the Basellandschaftliche Zeitung (bz) led to the decline in profits, the AZ Medien Group announced on Wednesday. The increase in the stake to 35 percent in Vogt-Schild Holding, publisher of the MZ partner Solothurner Zeitung (SZ), was also paid out of the operating cash flow. As a result, the operating result fell by 58.7 percent to CHF 8.1 million.
Income from the newspaper business rose to CHF 117.8 million and contributed 58% to the operating result. Radio Argovia and the TV stations Tele M1 and Tele Tell generated CHF 20.1 million, or 10 percent of operating income.
The AZ Medien Group attributes the slight increase in operating income to the good business performance of the specialist publishers, regional advertisers and the booming job market. The Board of Directors is proposing a dividend of CHF 30 per share to the Annual General Meeting.
Sunday as a success storyThe result was "mixed", said AZ publisher Peter Wanner in an interview published in his own newspaper. He was "not satisfied". He announced that AZ Medien would once again become active in the local advertising market itself. He was "not at all satisfied" with Publicitas.
Wanner described the newly launched Sonntag title as a success story. Around 95 percent of subscribers to the MZ network had opted for a subscription. Advertising sales were better than budgeted. The MZ-Verbund is "open to further cooperation".
It has still not been decided whether AZ Medien will launch its project for a new free newspaper. The general conditions have changed, said Wanner. The economy seems to be cooling down. Only the commuter paper 20 Minuten has been successful. One alternative would be to invest in MZ.
Income from the newspaper business rose to CHF 117.8 million and contributed 58% to the operating result. Radio Argovia and the TV stations Tele M1 and Tele Tell generated CHF 20.1 million, or 10 percent of operating income.
The AZ Medien Group attributes the slight increase in operating income to the good business performance of the specialist publishers, regional advertisers and the booming job market. The Board of Directors is proposing a dividend of CHF 30 per share to the Annual General Meeting.
Sunday as a success storyThe result was "mixed", said AZ publisher Peter Wanner in an interview published in his own newspaper. He was "not satisfied". He announced that AZ Medien would once again become active in the local advertising market itself. He was "not at all satisfied" with Publicitas.
Wanner described the newly launched Sonntag title as a success story. Around 95 percent of subscribers to the MZ network had opted for a subscription. Advertising sales were better than budgeted. The MZ-Verbund is "open to further cooperation".
It has still not been decided whether AZ Medien will launch its project for a new free newspaper. The general conditions have changed, said Wanner. The economy seems to be cooling down. Only the commuter paper 20 Minuten has been successful. One alternative would be to invest in MZ.
