After profit slump: Goldbach gains again
After the profit dip in 2014 due to the costly exit from loss-making businesses, the Goldbach Group was able to improve earnings again in the first half of 2015. Sales and profit increased significantly.
Sales grew by 4.5 percent to 226.8 million Swiss francs, the company announced on Friday. Operating profit (EBIT) improved by 9.2 percent to 10.7 million francs. Below the line, Goldbach Group earned 2.4 million francs. This is 75 percent more than in the same period last year, helped here by an extraordinary gain. Advertising Marketing Switzerland, which is the Group's largest business segment, increased sales by 8.5 percent to 197.8 million Swiss francs. "We managed strong single-digit percentage growth in TV in particular and were also able to launch D8, a new TV station in French-speaking Switzerland," Goldbach CEO Michi Frank said in a conference call. The radio business also developed very positively with an increase of 26 percent. The online business, however, is struggling: The loss of sales in the display segment could not be fully compensated by low single-digit growth in the video segment.
Germany targets break-even point for 2016
In advertising marketing in Poland and Austria, sales declined by 22.4 percent to CHF 9.6 million. The business in Germany, which is in the process of being built up, achieved sales of CHF 1.4 million for the first time, but also posted an operating loss before depreciation and amortization (EBITDA) of CHF 1.8 million. Next year, the company aims to break even in Germany, Frank said. The direct-to-customer business, which is grouped under Marketing Services, saw a 22.2 percent drop in sales to 19.1 million and an operating loss. For the full year, sales in the continuing business are expected to grow in the low single-digit percentage range. Net profit is expected to at least double, the company added.
Serenity in the face of new competition
Frank was coy about the new competition in advertising marketing from the joint venture announced last Monday between Ringier, Swisscom and SRG: "We will be watching this development very closely. I don't think we need to change our strategy. We believe we are well positioned." The question, however, is what happens to the data in a company that is nevertheless majority-controlled by the state, Frank said, "Here, we would like the same opportunities to get the data. That's a very important point for us." (SDA)
