NZZ Media Group with lower half-year profit
The profit of the NZZ Media Group was around a quarter lower in the first half of the year. The main reasons for the decline in earnings were significantly lower revenues in the print advertising market and expenditure on corporate development.
At CHF 17.6 million, the result of the NZZ Media Group in the first half of the 2012 financial year was CHF 6.3 million lower than in the previous year. In the first half of the year, the operating revenues of the NZZ Media Group were impacted by the decline in revenues in the print advertising market, but were almost able to maintain the previous year's level thanks to new revenues from product innovations and due to acquisitions. It fell by 0.5 percent to 259.7 million Swiss francs. This was stated by NZZ in a press release on Friday.
Due to the uncertain economic situation and as a result of structural change, revenues from the print advertising market were down 9 percent year on year. By contrast, the positive revenue trend in the digital advertising market, especially from online and local radio stations, continued in the first half of 2012. In the reader market, stable revenues were recorded despite a continued slight decline in newspaper circulation. The competitive market environment impacted sales in the commercial printing area, but print sales were maintained thanks to newly acquired orders.
Total operating expenses increased by 3 percent year-on-year to 239.0 million Swiss francs. The increase in costs was mainly due to expenses for strategic developments of business areas and new products in the print and digital areas, according to the NZZ release. The operating result decreased by 8.6 million Swiss francs to 20.8 million Swiss francs compared to the same period last year. The Ebit margin is 8.0 percent.
Shareholders' equity including minority interests decreased by CHF 19.9 million to CHF 406.0 million in the first half of the year. The decrease is mainly attributable to dividend distributions and goodwill from acquisitions offset against equity. Nevertheless, the equity ratio remained unchanged since the beginning of the year at 69 percent.
The first half of 2012 was characterized by an unsteady course of the global economy and politics, the NZZ release continues. The market environment in which the NZZ Media Group operates is also currently characterized by high volatility and general restraint. In the advertising market, which is central to the company, the structural shift in advertising budgets is also progressing rapidly. This is upsetting previous price structures and value chains. Expectations for the second half of 2012 are correspondingly cautious.
