Goldbach increased sales and loss

Media Goldbach Media made a loss of almost 17 million Swiss francs in its second year. "We are aiming for a balanced result in 2002 and a profit for the first time in 2003." Goldbach Media declared this in June last year. But things turned out differently. In its second year of existence, it increased sales by CHF 26.4 million to CHF 141.7 million, but the loss almost doubled to CHF 16.8 million. The increase in turnover is attributable to TV and radio marketing. Gross TV sales rose by 30 percent to CHF 107.1 million, while radio sales even increased by 49.5 percent to CHF 20.8 million. The Internet business, on the other hand, fell by 29 percent to CHF 13.7 million.High write-downsThe reasons for the high loss are manifold: firstly, Goldbach was still expecting extraordinary income from a strategic partnership last year, which did not materialize after all. Furthermore, double-digit revenues were lost due to the portal collapse, which is why the content division (Moneycab and Swisscontent) was sold off, resulting in write-downs of seven million francs. Various extraordinary expenses (an additional tax payment, the discontinuation of Active Agent Germany and the short-term cancellation of portal contracts) tore a hole of CHF 9.6 million in the cash register. Conversely, the sale of B&J Fastline, Radio Eviva and an advance payment from NRJ for the stake in Radio Z were reflected in the financial result with income totaling CHF 8.8 million.
Goldbach has now reduced costs by 40 percent. Together with further sales increases in the double-digit percentage range, Kappeler expects a balanced result for this year.
Goldbach Media in figures(in CHF million)
2001 2002 Change in %
Group sales 115.3 141.7 +22.9
Gross profit 37.4 36.1 -3.6
Depreciation, amortization and impairment -4.2 -16.6 -298.6
Group result -9.4 -16.8 -78.2
Full-time and part-time positions 341 199 -41.6
Markus Knöpfli