Goldbach makes further strong gains ahead of Tamedia takeover
Before the takeover by Tamedia, the Goldbach Group presents record results. Last year, net profit rose by 34 percent to 11.8 million Swiss francs, and Goldbach broke the 500 million mark in sales for the first time.
The advertising marketer generated sales of 511.5 million Swiss francs, 3.2 percent more than in the previous year, it announced on Tuesday. The operating result (Ebit) rose by 25.2 percent to 37 million Swiss francs.
However, costs in connection with the takeover by Tamedia had a somewhat negative impact on the result: Goldbach spent CHF 1.5 million on transaction and legal advisory services. Otherwise, all business areas contributed to growth, it said.
Strong growth in Germany
The advertising marketing business in Germany showed the strongest growth, increasing sales by 67 percent to CHF 13.6 million. The Munich-based company, which has been in business for three years, expanded its marketing inventory and established itself in the market, the group writes. The Berlin-based company Jaduda, which specializes in advertising for cell phones, had also made significant gains.
However, Switzerland remains the most important market in terms of sales. Sales here increased by 2.3 percent to CHF 457.6 million. The TV marketing segment developed particularly well, according to the statement. Here, Goldbach signed multi-year contracts with the media group RTL Deutschland, SevenOne Media (Switzerland), the 3Plus Group as well as AZ Medien and the web TV provider Wilmaa.
In the online business, Goldbach turned away from the brokerage business and focused on the marketing business. Thus, the Goldbach Audience unit markets the online inventory of RTL Mediengruppe Germany and SevenOne Media in Switzerland and, since the beginning of 2017, the video inventory of Tamedia.
This reorientation led to a 6.7 million drop in sales in the online business, writes Goldbach. However, the margin could be increased as a result.
The digital agency Goldbach Interactive, which specializes in marketing, was restructured and repositioned in 2017, the statement added. It won new clients and expanded existing mandates and has now returned to profitability. Sales in the Marketing Services division increased by 5 percent to CHF 31.3 million.
No dividends due to takeover
The takeover of Goldbach by the Zurich media group Tamedia had become known shortly before Christmas. Tamedia published its offer for the takeover of all Goldbach shares at 35.50 Swiss francs per share on February 2; the total purchase price amounts to 216 million Swiss francs. The takeover is expected to be completed in April, although a decision by the Swiss Federal Competition Commission is still pending.
Any dividends are to be deducted from the purchase price, according to the Goldbach release. For this reason, the Board of Directors is proposing to the Annual General Meeting that no dividend be paid in this financial year.
It is likely to be one of the last proposals of the current Goldbach Board of Directors: All members of the Board will step down from their positions as of the completion of the takeover. Tamedia CEO Christoph Tonini is to become the new Chairman of the Board of Directors, while Tamedia CFO Sandro Macciacchini and Tamedia's Head of Advertising and Commuter Media, Marcel Kohler, are also proposed for election.
The Goldbach Group is to continue as an independent company within Tamedia. Michi Frank, who will become a member of Tamedia's Management Board, will remain CEO of Goldbach. There are to be no staff reductions. (SDA/hae)
