Tamedia with significant drop in profits - Solothurner Tagblatt to be discontinued
Tamedia is discontinuing the Solothurner Tagblatt by the end of September. The media group suffered a 15.9 percent decline in revenue to 389.0 million Swiss francs in the first half of 2009. Profits plummeted dramatically, falling to 0.8 million Swiss francs from 59.4 million Swiss francs a year earlier.
Tamedia suffered a 15.9 percent drop in sales to 389.0 million francs in the first half of 2009. Profits plummeted: they amounted to CHF 0.8 million, compared to CHF 59.4 million a year earlier. The operating result at EBIT level fell by 95.2 percent to CHF 3.5 million, as the Zurich-based media group announced on Thursday. The corresponding margin amounted to 0.9 per cent after 15.5 per cent in the same period of the previous year. Tamedia's result in the first half of 2009 was characterized by "a sharp recession and a slump in advertising investments". The decline in advertising investments since June 2008 has worsened. Job advertisements in daily newspapers, for example, have fallen by 47.4 percent. As in previous economic cycles, this slump has hit Tamedia's leading job supplements Alpha and Stellen-Anzeiger with full force, the press release continues. Tamedia has taken extensive cost-cutting measures to counteract this. Cost-cutting measures totaling CHF 47.8 million were implemented in the first half of the year. The measures had a negative impact on the half-year financial statements with one-off restructuring costs of CHF 7.9 million
In the press release, Tamedia is not very specific about future developments. Due to the economic outlook, the media company expects advertising revenues to continue to decline until the end of 2010. However, as a result of the announced cost reductions and thanks to synergy effects, it should be possible to achieve a noticeable improvement in results from 2010 onwards.
End of Solothurner Tagblatt
Tamedia also announced that the Solothurner Tagblatt will be discontinued by the end of September. The paper, a regional edition of the Berner Zeitung, has been making constant losses in the millions in recent years, according to the statement. The closure, which is subject to the statutory consultation procedure, will lead to the loss of 13.8 full-time positions, affecting 17 employees.
In the press release, Tamedia is not very specific about future developments. Due to the economic outlook, the media company expects advertising revenues to continue to decline until the end of 2010. However, as a result of the announced cost reductions and thanks to synergy effects, it should be possible to achieve a noticeable improvement in results from 2010 onwards.
End of Solothurner Tagblatt
Tamedia also announced that the Solothurner Tagblatt will be discontinued by the end of September. The paper, a regional edition of the Berner Zeitung, has been making constant losses in the millions in recent years, according to the statement. The closure, which is subject to the statutory consultation procedure, will lead to the loss of 13.8 full-time positions, affecting 17 employees.
