Goldbach Group with problems in online business

At the bottom line, the Küsnacht ZH-based advertising marketer reported a profit of CHF 3.4 million. In the same period last year, the figure was CHF 3.1 million. At that time, however, the sale of a print business in Romania had depressed the result by around CHF 0.7 million.

In the Interactive division, which comprises the interactive and mobile marketing business, operating profit (EBIT) fell from CHF 1.4 million to just under CHF 0.2 million.

Despite a 27.8 percent drop in sales, the online advertising division was able to increase its EBIT from CHF 1.6 million to CHF 2.6 million. Cost savings of 20 percent and a one-off effect from the discontinuation of a license for online marketing software contributed to this, as Goldbach explained in the half-year report. The online division has dispensed with low-margin volume business. However, substitution in the declining display market was difficult. In addition, a number of mandates were lost, particularly in Poland, including the self-marketing of the social network Facebook.

Goldbach has reviewed its online strategy and decided to accelerate the expansion of video marketing, according to the statement. In view of the difficult market conditions in the online business, the Group lowered its forecast for the year as a whole.

Goldbach now expects sales to stagnate and profits to be higher. Previously, the management around CEO Klaus Kappeler expected a single-digit percentage increase in sales and a significantly higher profit. (SDA)