The turnover of the former Tamedia, which has been operating under the new name TX Group since the beginning of the year, increased by 6.8 percent to CHF 1.08 billion last year. This growth was driven primarily by the acquired companies Goldbach, Zattoo and Basel Newspaper. In organic terms, however, sales fell by 5%.
Operating profit at EBIT level fell by 46.5% to 70.4 million. In addition to the difficult environment for press advertising, the decline is primarily due to increased depreciation and amortization as a result of the acquisitions, investments in digital platforms and paid media as well as impairment losses on goodwill. The margin therefore fell further to 6.5% from 13.0% in the previous year and is well below the management's medium-term target of 15%.
Finally, profit fell by a disproportionately low 24.5 percent to 97.8 million. However, this includes extraordinary gains from the sale of Localsearch (18.7 million) and Starticket (7.2 million).
Shareholders are to receive a dividend of CHF 3.50, one franc less.
The management is not satisfied with the Group's performance in the past year: "The result for the 2019 financial year does not meet our ambitions," writes Chairman of the Board of Directors Pietro Supino in the annual report. Existing trends in the advertising market towards Google, Amazon, Facebook and Apple have accelerated. New international competitors are finding their way into the Swiss market and the further development of technical possibilities is increasing the risk of disruption, added CEO Christoph Tonini in the communiqué.
No improvement in paid media
Paid media remained under heavy pressure in 2019. As a result of the renewed sharp decline in advertising revenue from printed newspapers and magazines, revenue fell again by 3.9% to 512.9 million. Operating profit at EBITDA level fell by 11.8% to 43.9 million, which corresponds to a margin of 8.0%.
In the Commuter Media and Marketing division, revenue increased by 24.4% to 293.7 million, mainly thanks to the full-year consolidation of Goldbach. The operating margin at EBITDA level was maintained at 24.6%.
Expansion of marketplaces costs
In the Marketplaces and Ventures segment, the accelerated investments in the further development of the marketplaces had a negative impact. As a result, the EBITDA margin fell to 29.2% from 41.4% in the previous year. In terms of revenue, the business division increased by 13.4% to 272.9 million, not least thanks to the newly consolidated TV streaming platform Zattoo.
All of the Group's digital offerings together now contribute 51% of the TX Group's revenue and 84% of its adjusted EBIT.
In the current year 2020, the Group is focusing on costs. TX Group is reviewing the services offered by its central services. The individual Group companies are also reviewing their own efficiency programs, the Group writes in the presentation on the annual financial statements. (SDA)