The Ringier Group achieved a reduced Ebitda of CHF 64 million in the past financial year 2011 compared to the previous year (previous year CHF 115 million - this also included the special effects from the formation of Ringier Axel Springer Media). This was announced by the media company on Wednesday. At 1.147 billion Swiss francs, the Ringier Group generated sales in 2011 that fell short of the previous year's figure (-9 percent).
Ringier CEO Marc Walder (picture): "We can be satisfied with the 2011 financial year: Our strategy is taking hold, and we are continuing Ringier's rapid development into a media company with a diversified value chain. Sales and profits were lower in 2011 than in 2010, for three reasons: First, the slump in the print business. Second, the strong Swiss franc, which we feel painfully as an internationally active company. And thirdly, the Europe-wide economic slowdown from mid-2011. In the coming years, Ringier will continue to diversify - and at the same time strengthen the publishing business."
"Satisfactory result" in the area of Switzerland and Germany
In Switzerland and Germany (excluding print business), Ringier achieved a "satisfactory result" of CHF 610 million, according to the press release. Around 65 percent of sales were generated in the traditional core business of newspapers, magazines, print shops and online portals in 2011. The Blick Group clearly exceeded expectations in a difficult competitive environment.
The media company attributes this development to the strong advertising growth of the free newspaper Blick am Abend. In the magazine sector, which saw stable revenue development, part of the continued high profits could be used for new line extensions and in particular for the successful relaunch of the Landliebe magazine. These investments can be expected to make clearly positive contributions to earnings in the medium term, Ringier writes.
Ringier publications also made gains in French-speaking Switzerland, led by L'illustré. Ringier Romandie has also been marketing the advertising window of France's biggest private broadcaster TF1 for Switzerland with great success since the fall of 2011.
Positive development of the entertainment business fields
Already 23 percent of Swiss revenues were generated from the Digital Business unit in 2011. In the summer, Ringier acquired 60 percent of the leading Swiss Group buying platform Deindeal.ch. In February, Ringier made a strategic investment in the leading Swiss job portal jobs.ch via Scout24 Switzerland. Scout24 Switzerland now holds a 15 percent stake in jobs.ch. In May, the new eShop of Qualipet Digital AG also went online with more than 10,000 products.
And the entertainment businesses also developed positively: Ticketcorner grew in terms of sales and profits, and the sports marketing company Infront Ringier secured, among other things, the marketing and sports rights to the Super League soccer team, Swiss cycling, and is considering a possible Swiss bid for the 2022 Winter Olympics.
Slump in the printing business
In the highly competitive newspaper market, Ringier Print Adligenswil managed to continue its successful development in 2011, according to a statement. Thanks to additional individual orders and rigorous cost management, Ringier Print Adligenswil's sales were maintained at the previous year's level. In addition, the Ringier newspaper printing plant is the first in Switzerland to participate in the Myclimate program for climate protection.
Swissprinters faced a difficult market situation in 2011. The increasing decline in volumes in the printing sector and the low profit margins weighed on the earnings situation of the operations despite an average capacity utilization of just under 100 percent. The situation was made more difficult by the strong Swiss franc and the associated loss of print orders to other European countries. Against this backdrop, the company adapted its business strategy to the changing market conditions and made some forward-looking changes. In October, for example, Swissprinters had to announce the closure of its operations in St. Gallen as of June 30, 2012.
(Image: Keystone)
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