LZ Medien Thanks to the entry of NZZ, the Lucerne media holding company reported a consolidated profit for 2002 that was almost as high as in the previous year - and it has a bulging war chest.The 2002 results of LZ Medien must be viewed from a different angle than in previous years: until the beginning of 2002, Ringier still owned 49 percent of the Group's dairy cow Neue Luzerner Zeitung AG (NLZ), which is why Ringier was able to milk almost half of it before it had to be transferred to the LZ Medien stable for accounting purposes. In 2001, CHF 7.8 million flowed from Lucerne to Zurich. The more than 1,400 LZ Medien shareholders, who only have a stake in NLZ AG via the holding company, grumbled as they watched their skins swim away. With the takeover of Ringier's shareholding by NZZ a year ago, this game would have been continued with no cash withdrawal by NZZ.
However, the LZ Medien Board of Directors no longer wanted a minority shareholder in NLZ AG and entered into negotiations with NZZ. It offered it 33 percent of the holding company if it would contribute its NLZ share to the holding company. NZZ agreed, bought additional shares - including from Tamedia - and now holds 41.75 percent of LZ Medien.
The financial consequences are striking on both sides: if NZZ had remained a shareholder in NLZ AG like Ringier, it would now have been able to pocket an estimated CHF 5.5 million, which would probably have reduced LZ Medien's consolidated net profit to around CHF 3 million and the dividend would have been much lower - if one had been paid out at all. However, as a shareholder of LZ Medien, NZZ now only receives around CHF 650000 in dividends - a waiver that can be seen as real proof of NZZ's declared "long-term commitment" to Central Switzerland in view of the steep NZZ deficit.
LZ Medien can now report an operating result of CHF 15.3 million, which is CHF 5.4 million lower than in 2001 due to the lower advertising revenue. With a wink, Chairman of the Board Hans Kaufmann describes this as a "purely arithmetical" decline, precisely because LZ Medien has more money in its coffers at the end of the day. Kaufmann, who expects sales and profit figures for 2003 to be similar to those of last year, also proudly points to the cash flow margin of 18 percent and the equity ratio of now 63 percent.
Where is LZ Medien expanding to?
This means that BoD delegate Erwin Bachmann has a full war chest at his disposal. A fact to which Bachmann merely smiles meaningfully. He has already announced a new commitment: a 30 percent stake in Anzeiger Luzern. This is not only out of respect for the now buried Tamedia Express and 20 Minuten. This gives LZ Medien the opportunity to expand its (sales) boundaries somewhat.
For the Neue Luzerner Zeitung, which covers around 66 percent of all households in Central Switzerland, there is hardly any room for growth in terms of circulation. This is another reason why Bachmann is openly flirting with further stakes in electronic media, such as Radio Pilatus (currently 36.4%), Tele Tell (6.5%) and Radio Sunshine (16%). However, nothing concrete seems to be in sight, with the possible exception of the 18.3 percent stake in Radio Pilatus, which is still parked with Ringier and hardly makes any sense there (see WW 44/02).
The new media center, which is currently being planned and should be ready for occupation at the end of 2006, will also have a lot in store for LZ Medien. Although it has not yet been decided whether it will build it itself, the investment would be between 35 and 40 million francs.
The Neue Luzerner Zeitung, with its front pages, once again delivered fat profits to the holding company last year.
Markus Knöpfli