Despite swiftly implemented measures, the sharp decline in print advertising sales could only be partially compensated for in expenses and was reflected accordingly in the operating result. This was stated by the NZZ Media Group in a press release on Thursday. In addition, the structural change in the media sector required increased expenditure for the digital transformation of existing products and the development of new offerings.
The operating result EBIT decreased by 14.6 million Swiss francs to 37.9 million Swiss francs compared to the previous year. The EBIT margin of 7.3 percent was in line with long-term expectations, the statement added. With a significantly improved financial result, the Group posted a profit of 30.9 million Swiss francs. This is CHF 6.0 million less than in the previous year. The Board of Directors proposes to the Annual General Meeting that a dividend of 200 Swiss francs per share be paid for the 2012 financial year, unchanged from the previous year.
Total operating income decreased by 1.6 percent year-on-year to CHF 519.0 million. The decline was mainly due to falling revenues in the print web market. By contrast, revenues in the digital advertising market developed positively, with the growing online sector and regional radio stations in particular recording encouraging revenue growth, according to the NZZ release. Continued stable revenues were achieved in the reader market. Despite additional orders, slightly lower revenues were generated in the printing sector, which is characterized by production overcapacity. Other income increased by 17 percent compared to the previous year, mainly due to acquisitions. Total operating expenses increased by 1.3 percent to 481.0 million Swiss francs. The increase was mainly due to the integrations of the SEF Group and an operating unit in the calendar sector, as well as the accelerated expansion of the online division and publishing services, the statement said. The NZZ Media Group has a healthy balance sheet structure with a high equity ratio of 70 percent (+1 percentage point compared to the previous year).
The change in media usage and the changes in the advertising market will continue to occupy the NZZ Media Group in the 2013 financial year, the NZZ continued in its press release. The NZZ Media Group responded quickly to the growing demand for digital content and introduced corresponding offers, such as the paywall for online content. With the targeted further development of its core business, the consistent implementation of its digital strategy and, in particular, the development of new business areas, NZZ Media Group intends to meet the challenges.
New members of the Board of Directors proposed
In addition to the Chairman of the Board of Directors Franz Steinegger, the members of the Board of Directors Jens Alder and Konrad Hummler (Werbewoche.ch reported) will retire from the Board. Four new members will be proposed for election to the Board of Directors at the Annual General Meeting of the AG für die Neue Zürcher Zeitung. Franz Steinegger will reach the statutory age limit and retire from the Board. As already announced, the Board of Directors proposes the following as his successor Etienne Jornodexecutive Chairman of the Board of Directors of the Galenica Group. Subject to his election by the Annual General Meeting, the appointment of Etienne Jornod as Chairman will be made by the Board of Directors in accordance with the Articles of Association.
The current members of the Board of Directors, Jens Alder and Konrad Hummler, have announced their resignation at the Annual General Meeting. The Board of Directors proposes, in addition to the associated replacement elections, to fill the seat on the Board of Directors that has been vacant for some time. The Board of Directors of the AG für die Neue Zürcher Zeitung currently comprises 8 members; the Articles of Association provide for 7 to 9 members. In addition to Etienne Jornod, the following are proposed for election to the Board of Directors of the AG für die Neue Zürcher Zeitung: Isabelle Welton, Group Chief Marketing Officer of Zurich Insurance Group, Christoph Schmid, attorney at law in Zurich and partner of the law firm Wenger & Vieli, Dominique von Matt, majority shareholder and CEO of the communications agency Jung von Matt/Limmat.