"Publish new contracts soon"
Goldbach CEO Klaus Kappeler is hopeful about future demand for cross-media
Goldbach CEO Klaus Kappeler hopes for future demand for cross-mediaBy Daniel Schifferle CEO Klaus Kappeler sees the future focus of the Goldbach Group in the marketing of cross-media. The division, which is currently still being expanded, will see significant growth in two or three years at the latest. However, Goldbach Media intends to take its time with the sale of Hitradio Z, which should further pave the way for radio marketing.
The future of the Goldbach Media Group is obviously back to the old business, which was cultivated before Goldbach Media also fell for the New Economy hype and Internet dreams. But in the end, you will be poorer for Hitradio Z. That is a high price to pay.
Klaus Kappeler: Goldbach Media will continue to be active in the electronic cross-media sector. As the only company in Switzerland. However, we will concentrate on the B-2-B market as published, which is absolutely our strength. We are growing by around forty percent this year, which not many companies can match. We will continue to invest heavily in the online sector, in mobile and in new media such as flatscreens.
As we know, Goldbach has had a problem with its equity base since 2001. The costly expansion into new business areas has bled the company dry. Now money is urgently needed. Is that the reason why you want to sell Hitradio Z?
Kappeler: We want to concentrate on our absolute core competence, and that is the marketing of electronic media. This is the reason why we are selling Hitradio Z.
Goldbach is giving up a lot with Hitradio Z. In addition to a secure pillar of income, it also has a strong symbolic value: Radio Z was the beginning of the Group and remained the basis of today's company for a long time.
Kappeler: But a lot has developed out of this business within twenty years. Today, Hitradio Z accounts for a very small proportion of sales. We won't simply sell the radio station anyway. We want to bring it into a network in which it is more broadly based without having to part with it completely.
You only want to sell Hitradio Z without a marketing department?
Kappeler: Yes, the channel is only available without marketing. We will certainly keep it.
Where do you put the lowest bid for the purchase price? The sum of CHF 18 million is being bandied about in the industry, which is what the station should cost.
Kappeler: I'm not talking about the sale price, and I can't give any information about potential buyers either. Let's leave such things to the speculation of journalists.
The current economic situation is a bad time to achieve an attractive sales price. The fantasy from the media is gone, they are no longer a hit at the moment.
Kappeler: We live in a time that offers opportunities like any other. For us, it's more important that the station gets into the right environment than the timing. But I can't say when the purchase will be completed. Just this much: when you announce something, it is in everyone's interest that it is completed within a reasonable period of time.
Do you already have interested parties on the line?
Kappeler: Numerous interested parties have come forward. In any case, I can't confirm the concern reported in the press that there might not be enough interested parties.
As one of the reasons for the planned sale, you explain that the synergy gains between the subsidiaries in the B2B and B2C areas have neutralized instead of paying off. What does that mean?
Kappeler: We have more than doubled our turnover in radio marketing this year, and we want to continue to grow significantly in this area. However, this goal is hindered by the fact that Hitradio Z itself belongs to the group. Because of this, media agencies and advertising clients are concerned that Hitradio Z could be at an advantage. To counteract this, we have to position the station more cautiously than is appropriate for its actual performance. However, as soon as Hitradio Z is no longer majority-owned by us, we will be able to market the station much more actively than we do today.
Is the 35 percent stake in Radio Ri also up for sale?
Kappeler: That's not out of the question. At the moment, however, Radio Ri is not a priority at all.
When will you part with the Moneycab Internet portal, which is swallowing up a six-figure sum every month? Moneycab's business model didn't even work when the stock market was still going reasonably well. How should it work in the future now that investors are likely to be driven away from the stock market for many years?
Kappeler: Moneycab is a difficult case, I admit that. But at the moment I can't tell you anything about its future, because we are in talks with various potential partners. Moneycab is recognized as having one of the best business editorial teams and is very well respected in interested circles.
For the future, Goldbach Media is focusing on the marketing of cross-media concepts. Cross-media was already hardly in demand during the boom years, and with the advertising market crisis, clients no longer have any ears for it.
Kappeler: Whether it's a boom or a slump, customers are always looking for new and more attractive ways to reach their target group more effectively. Crossmedia is not just a technique but a philosophy of where and when I can reach my audience most successfully. Even in the current advertising market climate, this is certainly being heard.
You have announced that Goldbach Media will significantly expand cross-media marketing. Will you be reallocating jobs internally?
Kappeler: We are massively expanding our cross-media offering, not the number of jobs. We will be able to publish new contracts in the next few days.
Goldbach Media can no longer grow strongly as a marketer: with the exception of Super RTL, all possible advertising windows are already open in German-speaking Switzerland. Although there are TV candidates in French-speaking Switzerland, the closed cable networks in Geneva and Lausanne mean that there are no routes. Additional income from radio marketing will not grow skywards either, as you will have to share the already small radio pie with Radiotele.
Kappeler: We will also see double-digit growth next year. In addition to further growth in the TV market, the radio segment will also see further strong growth. And we will tap into growth potential, particularly in the still young cross-media sector. I am convinced that we will achieve very strong growth here in two or three years' time.
This has been said about the Internet for a long time, but as the whole world now knows, things have turned out quite differently.
Kappeler: No medium has ever reached its goal in such a short space of time. Not even the online medium. Online is notorious at the moment, and I also admit that it's not a business at the moment. But you can see that it is slowly developing and will find its place within the media offerings. We wouldn't invest if we didn't expect this to happen.
Goldbach has increased its capital three times in the past twelve months. A total of 1.2 million francs flowed into your coffers. Was it to meet the legally required reserves? Or are you up to something with the money?
Kappeler: No, no. These were quite normal capital increases that resulted from the integration of new business areas.
In 2001, Goldbach Media posted a loss of CHF 9.4 million on gross sales of CHF 115 million. What will these figures look like for the current year?
Kappeler: We are experiencing high growth. Our gross sales will probably exceed 150 million francs this year. But these are estimates. For the definitive figures, I will have to refer you to our annual media conference in May or June of next year.
Will the result be less deep red than in 2001?
Kappeler: I don't want to comment on that at the moment either.
The future of the Goldbach Media Group is obviously back to the old business, which was cultivated before Goldbach Media also fell for the New Economy hype and Internet dreams. But in the end, you will be poorer for Hitradio Z. That is a high price to pay.
Klaus Kappeler: Goldbach Media will continue to be active in the electronic cross-media sector. As the only company in Switzerland. However, we will concentrate on the B-2-B market as published, which is absolutely our strength. We are growing by around forty percent this year, which not many companies can match. We will continue to invest heavily in the online sector, in mobile and in new media such as flatscreens.
As we know, Goldbach has had a problem with its equity base since 2001. The costly expansion into new business areas has bled the company dry. Now money is urgently needed. Is that the reason why you want to sell Hitradio Z?
Kappeler: We want to concentrate on our absolute core competence, and that is the marketing of electronic media. This is the reason why we are selling Hitradio Z.
Goldbach is giving up a lot with Hitradio Z. In addition to a secure pillar of income, it also has a strong symbolic value: Radio Z was the beginning of the Group and remained the basis of today's company for a long time.
Kappeler: But a lot has developed out of this business within twenty years. Today, Hitradio Z accounts for a very small proportion of sales. We won't simply sell the radio station anyway. We want to bring it into a network in which it is more broadly based without having to part with it completely.
You only want to sell Hitradio Z without a marketing department?
Kappeler: Yes, the channel is only available without marketing. We will certainly keep it.
Where do you put the lowest bid for the purchase price? The sum of CHF 18 million is being bandied about in the industry, which is what the station should cost.
Kappeler: I'm not talking about the sale price, and I can't give any information about potential buyers either. Let's leave such things to the speculation of journalists.
The current economic situation is a bad time to achieve an attractive sales price. The fantasy from the media is gone, they are no longer a hit at the moment.
Kappeler: We live in a time that offers opportunities like any other. For us, it's more important that the station gets into the right environment than the timing. But I can't say when the purchase will be completed. Just this much: when you announce something, it is in everyone's interest that it is completed within a reasonable period of time.
Do you already have interested parties on the line?
Kappeler: Numerous interested parties have come forward. In any case, I can't confirm the concern reported in the press that there might not be enough interested parties.
As one of the reasons for the planned sale, you explain that the synergy gains between the subsidiaries in the B2B and B2C areas have neutralized instead of paying off. What does that mean?
Kappeler: We have more than doubled our turnover in radio marketing this year, and we want to continue to grow significantly in this area. However, this goal is hindered by the fact that Hitradio Z itself belongs to the group. Because of this, media agencies and advertising clients are concerned that Hitradio Z could be at an advantage. To counteract this, we have to position the station more cautiously than is appropriate for its actual performance. However, as soon as Hitradio Z is no longer majority-owned by us, we will be able to market the station much more actively than we do today.
Is the 35 percent stake in Radio Ri also up for sale?
Kappeler: That's not out of the question. At the moment, however, Radio Ri is not a priority at all.
When will you part with the Moneycab Internet portal, which is swallowing up a six-figure sum every month? Moneycab's business model didn't even work when the stock market was still going reasonably well. How should it work in the future now that investors are likely to be driven away from the stock market for many years?
Kappeler: Moneycab is a difficult case, I admit that. But at the moment I can't tell you anything about its future, because we are in talks with various potential partners. Moneycab is recognized as having one of the best business editorial teams and is very well respected in interested circles.
For the future, Goldbach Media is focusing on the marketing of cross-media concepts. Cross-media was already hardly in demand during the boom years, and with the advertising market crisis, clients no longer have any ears for it.
Kappeler: Whether it's a boom or a slump, customers are always looking for new and more attractive ways to reach their target group more effectively. Crossmedia is not just a technique but a philosophy of where and when I can reach my audience most successfully. Even in the current advertising market climate, this is certainly being heard.
You have announced that Goldbach Media will significantly expand cross-media marketing. Will you be reallocating jobs internally?
Kappeler: We are massively expanding our cross-media offering, not the number of jobs. We will be able to publish new contracts in the next few days.
Goldbach Media can no longer grow strongly as a marketer: with the exception of Super RTL, all possible advertising windows are already open in German-speaking Switzerland. Although there are TV candidates in French-speaking Switzerland, the closed cable networks in Geneva and Lausanne mean that there are no routes. Additional income from radio marketing will not grow skywards either, as you will have to share the already small radio pie with Radiotele.
Kappeler: We will also see double-digit growth next year. In addition to further growth in the TV market, the radio segment will also see further strong growth. And we will tap into growth potential, particularly in the still young cross-media sector. I am convinced that we will achieve very strong growth here in two or three years' time.
This has been said about the Internet for a long time, but as the whole world now knows, things have turned out quite differently.
Kappeler: No medium has ever reached its goal in such a short space of time. Not even the online medium. Online is notorious at the moment, and I also admit that it's not a business at the moment. But you can see that it is slowly developing and will find its place within the media offerings. We wouldn't invest if we didn't expect this to happen.
Goldbach has increased its capital three times in the past twelve months. A total of 1.2 million francs flowed into your coffers. Was it to meet the legally required reserves? Or are you up to something with the money?
Kappeler: No, no. These were quite normal capital increases that resulted from the integration of new business areas.
In 2001, Goldbach Media posted a loss of CHF 9.4 million on gross sales of CHF 115 million. What will these figures look like for the current year?
Kappeler: We are experiencing high growth. Our gross sales will probably exceed 150 million francs this year. But these are estimates. For the definitive figures, I will have to refer you to our annual media conference in May or June of next year.
Will the result be less deep red than in 2001?
Kappeler: I don't want to comment on that at the moment either.
