Tamedia increased sales in the first half of the year
Despite revenue growth, the Zurich-based media group Tamedia earned less in the first half of 2007 than in the previous year. Investments in new publications and expenses related to the discontinued magazine *Facts* led to a decline in profits. Tamedia recorded its strongest growth in the digital sector.
Despite sales growth, the Zurich-based media group Tamedia earned less in the first half of 2007 than in the previous year. Investments in new publications and expenses for the discontinued Facts magazine led to a decline in profits. Tamedia recorded the strongest growth in the electronic sector. In its accounts, the publishing house distinguishes between continuing and discontinued operations. The latter include Facts and Radio Basilisk.
Net profit including discontinued operations amounted to 51.2 million francs, 2.1 per cent lower than a year ago, as Tamedia announced on Thursday. Excluding Facts and Radio Basilisk, which is to be sold by the end of the year, profit rose by 8.3 percent to 57 million francs.
Sales increased by 5.5% to CHF 373 million thanks to the good economic situation. The operating result (EBIT) improved by 2.5 percent to 64.4 million francs.
The economy had a positive impact on business. Print advertising expenditure benefited from strong economic growth in January and February and increased significantly. Following a decline in April, however, growth was significantly weaker in the second quarter of 2007. Sales of job advertisements increased again thanks to the continuing fall in the unemployment rate.
Online platforms grow Tamedia, formerly a traditional print publisher, recorded the strongest sales growth in the electronic sector: sales in the continuing operations rose by 15.8 per cent to CHF 28.0 million, primarily thanks to strong growth in online activities. According to Tamedia, Alpha.ch and Jobwinner.ch were the main contributors to this growth. Investments in the online platforms 20minuten.ch, 20minutes.ch and Piazza.ch led to an increase in operating expenses. Radio 24 was able to increase its turnover in the first half of 2007, while it had to be content with a constant turnover. Tamedia is looking for a buyer for Radio Basilisk. The station is therefore classified as a discontinued operation.
Sales up thanks to free newspapers In the Newspapers division, the media company's most important segment, sales rose by 7.1 per cent to CHF 269.9 million. In its press release, Tamedia attributes the increase to growth in job advertisements, Finanz und Wirtschaft, 20 Minuten and 20 minutes. The free newspapers therefore appear to be continuing to perform well. The costs for the commuter newspaper 20 minutes, included for the first time for six months, and the investments in the regional editions of the Tages-Anzeiger also led to a considerable increase in operating expenses. The operating result before depreciation and amortization (EBITDA) therefore fell by 0.2 percent to CHF 51.6 million. In contrast, the Tages-Anzeiger was able to record a slight increase in sales thanks to the regional editions.
Annabelle recorded a decline in earnings The Magazines division increased its turnover by 4.6 percent to CHF 39.8 million. While the women's magazine Annabelle recorded a decline in profits, Schweizer Familie once again reported an improvement. The TV program guide TVtäglich suffered a slight decline in sales and profit. EBITDA in the Magazines division fell by CHF 0.7 million to CHF 5.5 million. Tamedia reports the discontinued news magazine Facts under discontinued operations.
Services The Services division recorded sales growth of 5.0 per cent to CHF 127.3 million. According to Tamedia, the Bubenberg printing center and the Zuvo delivery organization contributed to the positive development, significantly increasing both sales and profits. In contrast, commercial printing suffered a decline in sales.
Net profit including discontinued operations amounted to 51.2 million francs, 2.1 per cent lower than a year ago, as Tamedia announced on Thursday. Excluding Facts and Radio Basilisk, which is to be sold by the end of the year, profit rose by 8.3 percent to 57 million francs.
Sales increased by 5.5% to CHF 373 million thanks to the good economic situation. The operating result (EBIT) improved by 2.5 percent to 64.4 million francs.
The economy had a positive impact on business. Print advertising expenditure benefited from strong economic growth in January and February and increased significantly. Following a decline in April, however, growth was significantly weaker in the second quarter of 2007. Sales of job advertisements increased again thanks to the continuing fall in the unemployment rate.
Online platforms grow Tamedia, formerly a traditional print publisher, recorded the strongest sales growth in the electronic sector: sales in the continuing operations rose by 15.8 per cent to CHF 28.0 million, primarily thanks to strong growth in online activities. According to Tamedia, Alpha.ch and Jobwinner.ch were the main contributors to this growth. Investments in the online platforms 20minuten.ch, 20minutes.ch and Piazza.ch led to an increase in operating expenses. Radio 24 was able to increase its turnover in the first half of 2007, while it had to be content with a constant turnover. Tamedia is looking for a buyer for Radio Basilisk. The station is therefore classified as a discontinued operation.
Sales up thanks to free newspapers In the Newspapers division, the media company's most important segment, sales rose by 7.1 per cent to CHF 269.9 million. In its press release, Tamedia attributes the increase to growth in job advertisements, Finanz und Wirtschaft, 20 Minuten and 20 minutes. The free newspapers therefore appear to be continuing to perform well. The costs for the commuter newspaper 20 minutes, included for the first time for six months, and the investments in the regional editions of the Tages-Anzeiger also led to a considerable increase in operating expenses. The operating result before depreciation and amortization (EBITDA) therefore fell by 0.2 percent to CHF 51.6 million. In contrast, the Tages-Anzeiger was able to record a slight increase in sales thanks to the regional editions.
Annabelle recorded a decline in earnings The Magazines division increased its turnover by 4.6 percent to CHF 39.8 million. While the women's magazine Annabelle recorded a decline in profits, Schweizer Familie once again reported an improvement. The TV program guide TVtäglich suffered a slight decline in sales and profit. EBITDA in the Magazines division fell by CHF 0.7 million to CHF 5.5 million. Tamedia reports the discontinued news magazine Facts under discontinued operations.
Services The Services division recorded sales growth of 5.0 per cent to CHF 127.3 million. According to Tamedia, the Bubenberg printing center and the Zuvo delivery organization contributed to the positive development, significantly increasing both sales and profits. In contrast, commercial printing suffered a decline in sales.
