9.4 million loss in the first year
Goldbach Media expects a balanced account for 2002 and a profit for 2003
Goldbach Media expects a balanced account for 2002 and a profit for 2003By Markus Knöpfli With sales of CHF 115.3 million, Goldbach Media made a loss of CHF 9.4 million in its first year. Despite the difficult environment, it expects to break even this year.
Goldbach Media's gross revenues in 2001 amounted to CHF 115.3 million. As the cross-media company operates internationally, CHF 112 million came from Switzerland, CHF 1.5 million from Austria and the remainder from Germany and Hungary.
80% of total revenue was generated by the offline segment (radio and TV), with the remainder flowing into the coffers via the online segment. CEO Klaus Kappeler put the net revenue from radio and TV at CHF 83 million. According to him, this division was profitable, as was the company Swisscontent, which, however, had to reduce its workforce by 50% to 27 employees due to lost orders. The rest of the online division is not profitable.
Goldbach Media had to pay more than half of total sales, namely CHF 77.9 million, in the form of fees for marketing rights (around CHF 59 million), discounts (CHF 11.8 million) and agency and consultancy commissions (a good CHF 6 million). This left a gross profit of CHF 37.4 million, which was, however, eaten up by operating expenses (CHF 36.4 million), the costs of setting up the Group (CHF 4.1 million) and immediate write-downs (CHF 4.2 million) and taxes. The result: a loss of a whopping 9.4 million francs.
In view of the relocation, restructuring, mergers and acquisitions of the past year, such a result is understandable; after all, Goldbach Media now has 21 consolidated companies, compared with 12 a year ago.
"Exploding" radio sales expected for 2003
What is astonishing, however, is that Kappeler is expecting a balanced result for this year and even an operating profit for 2003. What's more, he did not make this calculation in anticipation of a better economic situation. On the contrary: Kappeler is rather pessimistic in this respect. In Goldbach Media's offline business, however, he expects sales growth, if only because of the loss of TV 3 and Tele 24 and thanks to the launch of the Vox and M6 advertising windows. Kappeler also expects "exploding" sales in the radio business. He also predicts further growth in the online sector, where he wants to increase the market share from a reported 30TP3T to 38%. Conversely, cost savings are also to be made. For example, Kappeler wants to halve IT costs alone from the current CHF 14 million.
The first four months of this year have certainly been promising, said Kappeler. During this period, sales in Switzerland alone have increased by 23%. Goldbach Media is still holding on to Swisscontent, which will generate sales of around CHF 7 million this year. "We are fighting for this company and building it up," said Kappeler. The "forward strategy" was also chosen for Moneycab and the aim is to "make the portal successful".
There will soon be a change on the Goldbach Board of Directors: Board Chairman Rosmarie Michel will step down from her position at the Annual General Meeting, but will remain on the Board for another year. The new Chairman will be IT specialist Peter A.C. Blum.
goldbach media in figures in CHF million 2001
Goldbach Media's gross revenues in 2001 amounted to CHF 115.3 million. As the cross-media company operates internationally, CHF 112 million came from Switzerland, CHF 1.5 million from Austria and the remainder from Germany and Hungary.
80% of total revenue was generated by the offline segment (radio and TV), with the remainder flowing into the coffers via the online segment. CEO Klaus Kappeler put the net revenue from radio and TV at CHF 83 million. According to him, this division was profitable, as was the company Swisscontent, which, however, had to reduce its workforce by 50% to 27 employees due to lost orders. The rest of the online division is not profitable.
Goldbach Media had to pay more than half of total sales, namely CHF 77.9 million, in the form of fees for marketing rights (around CHF 59 million), discounts (CHF 11.8 million) and agency and consultancy commissions (a good CHF 6 million). This left a gross profit of CHF 37.4 million, which was, however, eaten up by operating expenses (CHF 36.4 million), the costs of setting up the Group (CHF 4.1 million) and immediate write-downs (CHF 4.2 million) and taxes. The result: a loss of a whopping 9.4 million francs.
In view of the relocation, restructuring, mergers and acquisitions of the past year, such a result is understandable; after all, Goldbach Media now has 21 consolidated companies, compared with 12 a year ago.
"Exploding" radio sales expected for 2003
What is astonishing, however, is that Kappeler is expecting a balanced result for this year and even an operating profit for 2003. What's more, he did not make this calculation in anticipation of a better economic situation. On the contrary: Kappeler is rather pessimistic in this respect. In Goldbach Media's offline business, however, he expects sales growth, if only because of the loss of TV 3 and Tele 24 and thanks to the launch of the Vox and M6 advertising windows. Kappeler also expects "exploding" sales in the radio business. He also predicts further growth in the online sector, where he wants to increase the market share from a reported 30TP3T to 38%. Conversely, cost savings are also to be made. For example, Kappeler wants to halve IT costs alone from the current CHF 14 million.
The first four months of this year have certainly been promising, said Kappeler. During this period, sales in Switzerland alone have increased by 23%. Goldbach Media is still holding on to Swisscontent, which will generate sales of around CHF 7 million this year. "We are fighting for this company and building it up," said Kappeler. The "forward strategy" was also chosen for Moneycab and the aim is to "make the portal successful".
There will soon be a change on the Goldbach Board of Directors: Board Chairman Rosmarie Michel will step down from her position at the Annual General Meeting, but will remain on the Board for another year. The new Chairman will be IT specialist Peter A.C. Blum.
goldbach media in figures in CHF million 2001
Group sales 115.3
Revenue reductions* 11.8
Sales-related costs** 66.1
Gross profit 37.4
Group loss 9.4
* Discounts
** Broadcaster, agency and advisory commissions
The Goldbach editorial team
Board of Directors 42%
Management/employees 15%
Ex-Radio-Z shareholders (companies) 17%
Ex-Radio-Z shareholders (private individuals) 12%
Beisheim Holding 7%
Own stock 7%
