New growth after clear-cutting
Corporate Figures: A strict cost-cutting program has brought Tamedia back into the black. But concerns have not yet been put to rest.
operating expenses can be compensated for. This applies above all to the traditional print business. Although newspapers lost CHF 4.1 million, they also saved CHF 20.4 million. In the case of magazines, the CHF 4.9 million shortfall in income was offset by a CHF 19.3 million reduction in expenditure. The newspaper sector was thus able to
almost quadrupled its operating result (from CHF 6.1 million to CHF 23.1 million). Magazines, which were in the red with CHF 11.1 million in the previous year, made a profit of CHF 3.5 million.
Only one Tamedia title managed to increase its turnover: Schweizer Familie recorded an increase of 4.2 percent on the previous year to CHF 18.5 million. The Tages-Anzeiger was also surprisingly solid. The decline of 1.8 percent to 108.6 million francs is only slight compared to the slump in advertising volumes of
10 percent, according to the advertising statistics of the Swiss press for the ten major Swiss-German daily newspapers. However, advertising manager Fridolin Holdener is not overly optimistic: The Tagi is doing "a little better" than other papers because it is the one that is most likely to benefit from campaigns that are otherwise limited to weekly titles, he explains. However, daily newspapers remain a difficult place.
Electronic media gaining groundThe news magazine Facts continues to plow particularly hard ground. It has lost a further 22 percent of its turnover and still earned 11.3 million francs. Facts already reported a decline of 18 percent in its 2003 annual accounts. The relaunch at the beginning of April seems to have had little effect on the advertising market so far.
In contrast, the electronic media are showing encouraging trends. For the first time, they posted a positive operating result before depreciation and amortization (CHF 200,000). After depreciation and amortization, a minus of 3.8 million remains. Electronic media is the only division to report rising sales, up 6.2 percent to 25.3 million. At 5.5 percent less expenditure, this was also the area where the least savings were made. The Belcom stations Radio 24 and TeleZüri in particular brought more money into the coffers. Their turnover grew by over a fifth to CHF 13.3 million. Online activities reported record growth of 71 percent or CHF 1.8 million. Radio Basilisk, on the other hand, earned 7.5 percent less. The production company Condor Communications lost CHF 2.2 million - a third of its turnover - due to a lack of major orders from the entertainment sector.
Despite restructuring, the Services division with printing and distribution did not improve its business figures. Sales (including own orders) fell by CHF 20.6 million to CHF 101.2 million. Meanwhile, expenses could only be reduced by 18.7 million, so that last year's profit (1.4 million) in the first half of 2004 was only
loss of 800,000 francs. Before depreciation and amortization (EBITDA), the division is still in the black. This is the first time that Tamedia has reported positive EBITDA in all four divisions.
On the stock market, however, this good news did not give rise to any fantasies. The Tamedia share price has fallen by around 4 percent since the half-year figures were announced.
Stefano Monachesi
