SDA Group: Disappearance of free newspapers causes Group profit to shrink
Significantly lower consolidated net income for the SDA Group: Total revenue declined by 3.9 percent last year to 38.26 million Swiss francs.
According to SDA, this can be seen in the Group's 2009 annual report. Operating profit (EBIT) amounted to CHF 0.35 million (previous year: CHF 4.39 million). At the bottom line, Group profit after tax fell sharply to CHF 0.86 (3.10) million. According to Chairman of the Board of Directors Hans Heinrich Coninx, the decline in earnings is primarily a consequence of the massive slump in free newspapers. The shakeout occurred faster and more severely than expected. The free papers .ch, News, Cash daily and Le Matin Bleu ceased publication in 2009. Operating expenses increased by 7.4 percent to CHF 37.1 million. According to Markus Schwab, Chairman of the Executive Board, the costs for news procurement were reduced, while those for transmission as well as material and space costs remained stable.
In contrast, personnel costs increased by 4.4 percent to CHF 28.2 million. However, it should be noted that personnel expenses in 2008 were around CHF 1.1 million lower due to the dissolution of the patronage foundation. On a comparable basis, the increase in personnel costs amounted to just CHF 0.1 million. The SDA Group is facing another difficult year in 2010, Coninx and Schwab write in the annual report. It will not be possible to close the current year with a profit. Restructuring and cost-saving measures have been initiated so that a positive result can be expected again by the end of 2011.
Balance sheet remains solid
Equity increased by 3.6% to CHF 24.8 million in the last financial year despite the significantly lower consolidated profit. The equity ratio is 78.7% (previous year: 63.5%). Goodwill fell by a further 14.6 percent to CHF 7.64 million. Due to these solid balance sheet figures, SDA AG has decided against the capital increase envisaged at the beginning of the year. Should greater liquidity be required in the short term, SDA can currently refinance itself on the money and capital markets at favorable terms.
The SDA Group includes the SDA news agency, Sportinformation, the Keystone picture agency, News aktuell (Switzerland) and AWP Finanznachrichten. SDA AG has a total of 218 (previous year: 220) full-time positions.
In contrast, personnel costs increased by 4.4 percent to CHF 28.2 million. However, it should be noted that personnel expenses in 2008 were around CHF 1.1 million lower due to the dissolution of the patronage foundation. On a comparable basis, the increase in personnel costs amounted to just CHF 0.1 million. The SDA Group is facing another difficult year in 2010, Coninx and Schwab write in the annual report. It will not be possible to close the current year with a profit. Restructuring and cost-saving measures have been initiated so that a positive result can be expected again by the end of 2011.
Balance sheet remains solid
Equity increased by 3.6% to CHF 24.8 million in the last financial year despite the significantly lower consolidated profit. The equity ratio is 78.7% (previous year: 63.5%). Goodwill fell by a further 14.6 percent to CHF 7.64 million. Due to these solid balance sheet figures, SDA AG has decided against the capital increase envisaged at the beginning of the year. Should greater liquidity be required in the short term, SDA can currently refinance itself on the money and capital markets at favorable terms.
The SDA Group includes the SDA news agency, Sportinformation, the Keystone picture agency, News aktuell (Switzerland) and AWP Finanznachrichten. SDA AG has a total of 218 (previous year: 220) full-time positions.
