In the first half of the year, the media company generated sales of CHF 524 million (previous year: CHF 554.2 million). This corresponds to a decline of 5.4 percent. EBIT fell by 31.6 percent to CHF 60.3 million (previous year: CHF 88.1 million), while the result amounted to CHF 73.7 million (previous year: CHF 87.7 million). The decline in sales reflects the mixed development of the Swiss advertising market, Tamedia said in a statement on Thursday. In its advertising statistics for daily newspapers, the Swiss Media Association reports an overall decline in net advertising revenues of 10 percent.
Job advertisements in particular suffered a slump. A drop of 23 percent was reported here. Sales of the Tages-Anzeiger newspaper with the Alpha and Stellen-Anzeiger job supplements as well as 24heures and Tribune de Genève fell particularly sharply, according to the press release.
Two thirds of the decline in sales is attributable to the Print Regional business division, the press release continues. It is crucial for the Group that measures to improve results in the Print Regional division are implemented on an ongoing basis. This was stated by Tamedia CEO Martin Kall during a telephone conference on Thursday, according to SDA.
The sales performance of the Digital business division also fell short of expectations. The business division contributed 12.1 percent (previous year: 11.1 percent) to total sales, while the Print Regional business division accounted for 47.2 percent (previous year: 48.7 percent). The investments in the editorial offices and the expansion of the classifieds and service portals have not yet paid off to the extent hoped for. The main problem in this context is advertising revenue from mobile users. "More than half of the hits on 20 Minuten Online, for example, come from mobile devices," Kall continued, according to SDA. "So we have a lot of users who bring us nothing commercially." The big challenge is therefore the question of how to commercialize mobile use. According to Kall, one possibility would be paid content on the news portals. However, this so-called paywall is ruled out for the online portal 20 Minuten. "If at all, it would only exist on the news network," says Kall according to SDA. A decision will be made by the end of the year.
The Print National business division contributed 40.8 percent (previous year 40.2 percent) to sales. According to SDA, the Group CEO expressed his satisfaction with the National Print Media division during the conference call. The aim is to expand further in this area.