Goldbach achieves record result in the 2017 financial year

According to the press release, Goldbach was able to break the 500 million mark in sales for the first time in the company's history "despite challenging advertising markets".

Meanwhile, the existing members of the Board of Directors of Goldbach have decided to step down from their positions with effect from the closing of the takeover by Tamedia. Christoph Tonini (CEO Tamedia) is to be newly elected to the Board of Directors as Chairman, and Sandro Macciacchini (CFO Tamedia) and Marcel Kohler (Head of Advertising & Commuter Media Tamedia) as members of the Board of Directors. On February 2, 2018, Tamedia published the offer for the acquisition of all Goldbach shares, which the Goldbach Board of Directors recommends to the shareholders for acceptance (Werbewoche reported).

Sales and earnings 2017

Goldbach generated sales of CHF 512 million in the past financial year (+3.2%). Adjusted for foreign currency and divestment effects, growth was plus 3.7 percent. All business units were able to further increase their sales compared to the previous year. As a result of higher sales, an improved gross profit margin and lower operating costs, EBITDA increased by 22 percent to CHF 39.7 million. Net income amounted to CHF 11.8 million compared to CHF 8.8 million in the previous year. The net profit includes extraordinary costs of CHF 1.5 million in connection with the ongoing acquisition project. Adjusted for these special factors, adjusted net income amounts to CHF 13.3 million. Due to the fact that any dividend will be deducted from the acquisition price as part of the planned transaction with Tamedia, the Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year.

Ad Sales Switzerland

In the Ad Sales Switzerland operating segment, Goldbach combines its activities in the field of advertising marketing in Switzerland, generating sales of CHF 458 million, an increase of 2.3 percent year-on-year. EBITDA was CHF 43.6 million, up 11 percent on the previous year.

Compared to the previous year, TV revenues increased by just under 3 percent. In addition to the positive operating result, the multi-year contract extensions with the partners Mediengruppe RTL Deutschland and Sevenone Media (Switzerland) as well as the 3 Plus Group, AZ Medien and the web TV provider Wilmaa represent significant milestones for Goldbach in the 2017 financial year.

After a difficult start to the year, Swiss Radioworld, which is active in the radio brokerage business, was able to make gains and closed 2017 just behind the previous year in terms of sales (-3%). By connecting several radio stations to Swiss Radioworld's booking platform, the company was able to take a major step towards automatic, event data-based product delivery.

The online business in Switzerland was further strengthened in 2017. RTL Mediengruppe Deutschland and Sevenone Media (Switzerland) acquired stakes in Goldbach Audience, extending the successful partnership to the online business. Goldbach exclusively markets the online inventory of these two partners in Switzerland. In addition, the partnership in the marketing of Tamedia video inventory started at the beginning of 2017. Due to the focus of Goldbach Audience on the marketing business, only exclusive inventory spaces or inventory spaces integrated in the high-quality network products are sold. This move away from the brokerage business resulted in a negative revenue effect (CHF -6.7 million). Adjusted for the discontinuation of the brokerage business, Goldbach Audience recorded growth of 25.7 percent on the portfolio.

Ad Sales Germany and Austria

Ad Sales Germany generated sales of CHF 13.6 million in 2017, representing a year-on-year increase of 67 percent. With EBITDA of CHF 0.3 million, Goldbach's German business moved into the black in 2017 as announced (previous year's EBITDA: CHF -1.2 million). The development of Goldbach Germany resulted from growth in all four business areas: TV, online video, DOOH and smart TV.

With its marketing activities in Austria, Goldbach generated 11 percent higher revenues of CHF 14.4 million and EBITDA of CHF 0.7 million in 2017 (+8% year-on-year). Sales and campaign support have been managed centrally since last year in order to better meet multichannel-oriented customer needs.

Marketing Services

In the 2017 financial year, Goldbach Interactive, Goldbach's digital agency specializing in performance marketing, was restructured and returned to profitability. Thanks to the cross-border management, the agency was successfully stabilized. As a result, notable new clients were acquired and existing mandates in the DACH region were expanded. Despite last year's disposal of the Biel-based Digital Presences business unit, revenues in the Marketing Services division increased by 5 percent to CHF 31.3 million. EBITDA in 2017 amounted to CHF 0.1 million (previous year: CHF - 2 million).

Partnership with Tamedia

Goldbach's current business model is largely based on linear TV, which is facing significant challenges due to changing consumer behavior (time-shifted TV, streaming), the increasing convergence of different media genres and the associated rise in the technological focus of the business. Based on these considerations, the Board of Directors and the Management Board of Goldbach initiated a strategic realignment project at the beginning of 2017, the aim of which was to expand Goldbach's business base with the help of a strategic partner in order to compensate for the long-term risks in the core business described above. Together, Goldbach and Tamedia are well positioned to master the upcoming changes in the advertising market and to support advertising customers and media partners with technologically innovative offers.