NZZ Group generates lower sales and profits in 2005
The NZZ Group describes 2005 as a year of upheaval and new beginnings. The financial results were modest, with a profit of 13.6 million Swiss francs (2004: 21.8 million) and consolidated revenue of 482.3 million Swiss francs (2004: 547 million).
The NZZ Group describes 2005 as a year of upheaval and new beginnings. The financial result was modest, with a 38 percent drop in profit to CHF 13.6 million (2004: 21.8 million) and consolidated sales of CHF 482.3 million (2004: 547 million), a fall of 12 percent. The LZ-Medien Group and Tagblatt-Medien subsidiaries were the main profit generators. Neue Zürcher Zeitung AG, which again incurred start-up costs for the "NZZ am Sonntag" and online activities, just failed to turn a profit. However, the situation of the parent company has improved significantly compared to the two previous years, according to the communiqué. The NZZ is pinning its hopes on measures that have already been taken and implemented, including a renewal of the NZZ's appearance and the presentation of its content with a view to new reading habits. These should have a positive effect on the 2006 operating result. According to the Board of Directors' proposal to the Annual General Meeting on April 22, CHF 1.2 million will be used to pay an unchanged dividend of CHF 300 per share.
However, the NZZ Group announced on Friday evening that numerous changes had been made in 2005 that should bear fruit in the medium term. These include the partnership with PubliGroupe: since January 1, 2005, Publicitas has been responsible for marketing the advertising space in the NZZ and the "NZZ am Sonntag" under the name "NZZ Media". In cooperation with PubliGroupe, the expansion of the regional newspaper sector was driven forward: After acquiring a 20% stake in Zürichsee-Presse, publisher of the "Zürichsee-Zeitung", and a 40% stake in Zürcher Unterland Medien AG, publisher of the "Zürcher Unterländer", from PubliGroupe via Freie Presse Holding (FPH), the NZZ Group purchased 38% of Zürcher Oberland Medien AG, publisher of the "Zürcher Oberländer", from a private asset manager. In the course of the formation of the two business divisions NZZ and FPH, the management of the Group and the management of NZZ were made independent and personnel were renewed. The business printing division of the NZZ Group with the subsidiaries Zollikofer AG and NZZ Fretz AG was incorporated into the joint venture Swiss Printers AG of the NZZ Group (30% shareholding) and Ringier (70%). The start-up year of Swiss Printers AG was impacted by the restructuring expenses at Ringier Print Zofingen AG.
The year of disappointed hopesThe NZZ Group also reported that 2005 was a year of disappointed hopes on the advertising market. In addition to the decline in advertising business at the "Neue Zürcher Zeitung" (-5.2%), the "Neue Luzerner Zeitung" (-6.5%) and the "St.Galler Tagblatt" (-8.9%), the "NZZ am Sonntag" and the "NZZ Folio" held up relatively well. With the exception of the "NZZ am Sonntag", which continued to grow, all titles recorded a slight decline in circulation figures in addition to the decline in advertising business. The readership figures were in markedly positive contrast to this, pointing to increased attention for NZZ products. However, the figures for the first two months of the current year indicate a slight upward trend in the advertising business, the NZZ Group continued. After a year of upheaval and new beginnings, the NZZ Group is well equipped to meet future challenges.
However, the NZZ Group announced on Friday evening that numerous changes had been made in 2005 that should bear fruit in the medium term. These include the partnership with PubliGroupe: since January 1, 2005, Publicitas has been responsible for marketing the advertising space in the NZZ and the "NZZ am Sonntag" under the name "NZZ Media". In cooperation with PubliGroupe, the expansion of the regional newspaper sector was driven forward: After acquiring a 20% stake in Zürichsee-Presse, publisher of the "Zürichsee-Zeitung", and a 40% stake in Zürcher Unterland Medien AG, publisher of the "Zürcher Unterländer", from PubliGroupe via Freie Presse Holding (FPH), the NZZ Group purchased 38% of Zürcher Oberland Medien AG, publisher of the "Zürcher Oberländer", from a private asset manager. In the course of the formation of the two business divisions NZZ and FPH, the management of the Group and the management of NZZ were made independent and personnel were renewed. The business printing division of the NZZ Group with the subsidiaries Zollikofer AG and NZZ Fretz AG was incorporated into the joint venture Swiss Printers AG of the NZZ Group (30% shareholding) and Ringier (70%). The start-up year of Swiss Printers AG was impacted by the restructuring expenses at Ringier Print Zofingen AG.
The year of disappointed hopesThe NZZ Group also reported that 2005 was a year of disappointed hopes on the advertising market. In addition to the decline in advertising business at the "Neue Zürcher Zeitung" (-5.2%), the "Neue Luzerner Zeitung" (-6.5%) and the "St.Galler Tagblatt" (-8.9%), the "NZZ am Sonntag" and the "NZZ Folio" held up relatively well. With the exception of the "NZZ am Sonntag", which continued to grow, all titles recorded a slight decline in circulation figures in addition to the decline in advertising business. The readership figures were in markedly positive contrast to this, pointing to increased attention for NZZ products. However, the figures for the first two months of the current year indicate a slight upward trend in the advertising business, the NZZ Group continued. After a year of upheaval and new beginnings, the NZZ Group is well equipped to meet future challenges.
