Tamedia: Sales growth through Edipresse Suisse - jump in earnings to 88 million francs
Tamedia once again increased its earnings in the first six months of 2011 and reported its best half-year results in the last ten years.
The first-time inclusion of Edipresse Suisse contributed significantly to this result, as the Swiss media company writes in a press release on Wednesday. Revenues rose by 55.1 percent to CHF 558.9 million. The newly introduced segment reporting illustrates the increasing importance of digital media at Tamedia. The external revenue share of the fast-growing Digital business division is 11.0 per cent (previous year 9.5 per cent). The Print Regional business division contributed 53.4 per cent (previous year 47.9 per cent) and the Print National business division 35.6 per cent (previous year 42.6 per cent) to revenues. The company's operating expenses rose disproportionately by 49.2% to CHF 443.1 million.
Operating income before depreciation and amortization (EBITDA) recorded a significant increase of 82.7 per cent to CHF 115.8 million (previous year CHF 63.4 million). At CHF 88.7 million, Tamedia's operating income after depreciation and amortization (EBIT) in the first half of 2011 was almost twice as high as in the previous year (CHF 46.7 million).
Following a recovery last year, advertising pressure rose only slightly in the first six months of 2011. The advertising statistics of the Swiss Media Association show growth of +2% for print media based on net advertising sales and +1% for daily newspapers. Job advertisements developed positively with +4%, while real estate advertisements declined by -9%.

New segment reporting
The merger with Edipresse Suisse has led to a new segment reporting structure at Tamedia, broken down by market. The Print Regional business division comprises all regional newspapers and advertisers. All areas previously reported in the Services business division will be integrated into the Print Regional business division. The Print National business division comprises all newspapers and magazines with a national focus. The integration of Services, which operates almost exclusively for internal customers, into the Print Regional business division and the reporting of the two business divisions Print National and Digital increases comparability with other media companies. The Digital business division, which will continue to grow in importance over the next few years, includes all online media for the first time.
Print Regional
Sales in the Print Regional business division increased by 83.1 percent to CHF 343.9 million. This growth is mainly due to the first-time inclusion of the Edipresse Suisse titles, in particular the daily newspapers 24 heures and Tribune de Genève, which contributed CHF 137.3 million to the business division's turnover. The daily newspapers Zürichsee-Zeitung and Zürcher Unterländer, which were included for a full six months for the first time, also made a positive contribution to revenues. Sales of the other newspapers remained stable for the most part. The printing centers, which are also included in the new Print Regional business division, again reported a decline in sales due to price adjustments.
Print National
Sales in the Print National business division rose by 48.2 percent to CHF 229.0 million. This growth is mainly attributable to the first-time consolidation of the Edipresse Suisse titles, in particular the daily newspaper Le Matin and the Sunday newspaper Le Matin Dimanche, as well as the now fully consolidated French-language commuter newspaper 20 minutes, which contributed CHF 75.1 million. The commuter newspaper 20 Minuten and the women's magazine Annabelle once again made a positive contribution to the increase in sales, while Schweizer Familie and Finanz und Wirtschaft suffered a decline in sales. Sales of the other titles remained stable for the most part.
Digital
The online media reported in the Digital business division continued their strong growth. Turnover in the Digital business division rose by 78.3% to CHF 64.2 million. The online media of Edipresse Suisse and the online platform Car4you.ch, which together with the now fully consolidated online platforms Homegate.ch, Jobup.ch and Swissfriends.ch contributed CHF 21.2 million to growth, were included for the first time. 20 Minuten Online and the Jobup job platforms also continued to perform well. The directory platform Search.ch also reported significant sales growth.

