Goldbach Media with higher sales and lower net profit
Mixed feelings at the media marketing company Goldbach Media: The 9.8 percent increase in sales is evidence of a growth spurt, yet the Group's profit shrank from CHF 6 million to CHF 5.1 million. The reason for the dip is various measures to prepare for further growth.
Mixed feelings at the media marketing company Goldbach Media: The 9.8 percent increase in sales is evidence of a growth spurt, yet the Group's profit shrank from CHF 6 million to CHF 5.1 million. The reason for the dip is various measures to prepare for further growth.
For example, a changeover to an international accounting system and new operating software were expensive. Without these additional costs, the Goldbach Group would have been able to increase its profit by 15 percent, as Chairman of the Board of Directors Peter Blum explained on Wednesday.
Online boom The fact that the Group was nevertheless able to present a good result can be attributed to the newer forms of advertising. The ad screen business grew significantly: up 18.7 percent. However, the strongest growth was in online advertising, which was up 63% on the previous year. This segment benefited from rising advertising expenditure in the financial and services sectors. With sales of CHF 34.3 million, the online business has now almost reached the second-largest revenue generator, radio. The radio sector suffered from the World Cup and was the only one to suffer a decline in sales of 3.4% to CHF 37.4 million. Television advertising is still number one and continues to develop steadily with an increase of 4.3% to CHF 122.7 million.
Breakthrough in Austria Business in Austria increased by 49 percent to CHF 9.5 million and contributed 4.8 percent to the Goldbach Media Group's total sales in 2006. With the introduction of a holding structure and the division into two companies for the online and offline business (TV, radio, ambient), Goldbach Media is underlining its claim to be a cross-media provider and thus a specialist for cross-media marketing concepts in Austria, according to a media communiqué. Goldbach Media is currently examining expansion into Romania, Bulgaria, Poland and Hungary.
For example, a changeover to an international accounting system and new operating software were expensive. Without these additional costs, the Goldbach Group would have been able to increase its profit by 15 percent, as Chairman of the Board of Directors Peter Blum explained on Wednesday.
Online boom The fact that the Group was nevertheless able to present a good result can be attributed to the newer forms of advertising. The ad screen business grew significantly: up 18.7 percent. However, the strongest growth was in online advertising, which was up 63% on the previous year. This segment benefited from rising advertising expenditure in the financial and services sectors. With sales of CHF 34.3 million, the online business has now almost reached the second-largest revenue generator, radio. The radio sector suffered from the World Cup and was the only one to suffer a decline in sales of 3.4% to CHF 37.4 million. Television advertising is still number one and continues to develop steadily with an increase of 4.3% to CHF 122.7 million.
Breakthrough in Austria Business in Austria increased by 49 percent to CHF 9.5 million and contributed 4.8 percent to the Goldbach Media Group's total sales in 2006. With the introduction of a holding structure and the division into two companies for the online and offline business (TV, radio, ambient), Goldbach Media is underlining its claim to be a cross-media provider and thus a specialist for cross-media marketing concepts in Austria, according to a media communiqué. Goldbach Media is currently examining expansion into Romania, Bulgaria, Poland and Hungary.
