Ringier with massive profit slump in 2009
Ringier reported a massive drop in annual profit in 2009. Annual profit after taxes fell by 72.4 percent to 17.2 million Swiss francs. In 2009, the media group generated revenue of 1.3 billion Swiss francs. Compared to the record year of 2008, this represents a decline of 15.6 percent.
Digital revenue fell from CHF 130.5 million in the previous year to CHF 112.3 million. However, revenue from the individual products increased almost across the board. The Blick.ch news portal, for example, generated a profit. The share of digital revenue in total revenue increased to 8.7 percent.
On the Swiss market, the company suffered a 9.5% drop in sales. In Eastern Europe, sales fell by 20.5% and in Asia by 25.9%.
The weak currencies in Eastern Europe - particularly in the Czech Republic and Slovakia - had an additional negative impact. Business was particularly poor in Romania and best in Serbia.
Despite the slump in profits, Group CEO Christian Unger is "highly satisfied". Not many companies can cope with such a drop in turnover, says Unger. Thanks to savings programs introduced at an early stage - expenses fell by 13.4 percent - the break-even point was maintained. Ringier has cut 681 jobs worldwide, 328 of them in Switzerland alone. The company currently employs 7448 people, 3082 of them in Switzerland.
According to Unger, there are still no signs of recovery in the major markets this year. He does see the first glimmers of hope in the small Asian market. Overall, however, the Group CEO does not expect to see an upward trend until the end of the year at the earliest.
According to Chairman of the Board of Directors Michael Ringier, the number of journalistic jobs is also likely to increase again. The major investments of CHF 97 million - including in the newsroom - also show that the Group believes in the future of print media. Ringier also assured that it was investing in the quality of journalism. imp
On the Swiss market, the company suffered a 9.5% drop in sales. In Eastern Europe, sales fell by 20.5% and in Asia by 25.9%.
The weak currencies in Eastern Europe - particularly in the Czech Republic and Slovakia - had an additional negative impact. Business was particularly poor in Romania and best in Serbia.
Despite the slump in profits, Group CEO Christian Unger is "highly satisfied". Not many companies can cope with such a drop in turnover, says Unger. Thanks to savings programs introduced at an early stage - expenses fell by 13.4 percent - the break-even point was maintained. Ringier has cut 681 jobs worldwide, 328 of them in Switzerland alone. The company currently employs 7448 people, 3082 of them in Switzerland.
According to Unger, there are still no signs of recovery in the major markets this year. He does see the first glimmers of hope in the small Asian market. Overall, however, the Group CEO does not expect to see an upward trend until the end of the year at the earliest.
According to Chairman of the Board of Directors Michael Ringier, the number of journalistic jobs is also likely to increase again. The major investments of CHF 97 million - including in the newsroom - also show that the Group believes in the future of print media. Ringier also assured that it was investing in the quality of journalism. imp
