TV 3 seeks new source of funds
Group profit at Tamedia 25 million francs lower than in 1999
Consolidated profit at Tamedia 25 million francs lower than in 1999By Markus KnöpfliThe management of the Zurich media group Tamedia AG is satisfied with the first consolidated financial statements after the IPO. Apart from the problem child Schweizer Familie, the print division is doing well, but Tamedia still has to dig deep into its pockets for TV 3 and Winner.
Hans Heinrich Coninx, Chairman of the Board of Directors of Tamedia AG, described the Group's business results as "excellent", although the consolidated profit was 25 million francs lower than in 1999. Despite this "expected" decline, according to Tamedia CEO Michel M. Favre, the profit was still better than in 1998.
Tamedia increased its sales last year by seven percent to CHF 823 million - thanks to higher publishing revenues. The operating result before depreciation and amortization rose by 3.1 per cent to CHF 179 million, although the expansion of electronic media had a negative impact of CHF 43 million on the result. And the operating result after depreciation and amortization was slightly lower than in the previous year due to the acquisition of Finanz und Wirtschaft.
Tamedia's core print business improved its revenues by twelve percent to CHF 712.7 million, which is above the industry average of 8.2 percent gross, emphasized Tamedia CFO Patrick Eberle. The Alpha management job advertisement contributed to the good result, while a decline was recorded in rental and real estate advertisements.
The Tages-Anzeiger, the flagship of Tamedia AG, increased its revenues from CHF 390.9 million to CHF 421.5 million. Despite commuter newspapers. According to Kurt W. Zimmermann, member of the Management Board, the circulation of the Tages-Anzeiger has lost around 11,000 copies and will lose around the same amount again this year. The revenue of ZürichExpress has also grown, namely by 2.7 percent. Facts, which has had its most financially successful year, increased its revenue by 1.1 million francs or 2.5 percent. Thanks to the new online bundle, SonntagsZeitung was able to record 204 additional advertising pages in the last quarter of 2000 alone and increased its revenue by 0.9 percent. Annabelle recorded only little revenue, namely 0.2 million francs, while Schweizer Familie once again suffered a 3.8 percent drop in revenue.
Tamedia is facing difficult times in the electronic media, especially at TV 3. With total revenues of CHF 15.8 million, TV 3 recorded a deficit of CHF 53 million. Although this was CHF 7 million less than expected, a further deficit of CHF 45 million is budgeted for this year. In addition, the break-even point had to be postponed by one year and the total investment over five years had to be increased to CHF 180 million.
Tamedia does not want to be alone
Make TV
Now, of all times, the Luxembourg joint venture partner SBS wants to withdraw from the TV project. "We are in negotiations with SBS regarding a new ownership structure for TV 3. Tamedia has also been fully financing TV 3 since January 2001," said Eberle. Tamedia is therefore currently in talks "with potential and interested partners". Favre added that Tamedia's goal is to find a new joint venture partner. "We don't want to do TV alone," he said.
Winner also posted a weaker result than expected. Income of CHF 3.7 million in Winner's first year was offset by investments of CHF 16 million. Another ten million francs will be needed this year. And the AuctionWinner and PriceWinner internet platforms will be discontinued for the time being. Nevertheless, Coninx stated: "We believe in the success of electronic media and are therefore prepared to continue investing in this area."
Income of tamedia-medien*
Hans Heinrich Coninx, Chairman of the Board of Directors of Tamedia AG, described the Group's business results as "excellent", although the consolidated profit was 25 million francs lower than in 1999. Despite this "expected" decline, according to Tamedia CEO Michel M. Favre, the profit was still better than in 1998.
Tamedia increased its sales last year by seven percent to CHF 823 million - thanks to higher publishing revenues. The operating result before depreciation and amortization rose by 3.1 per cent to CHF 179 million, although the expansion of electronic media had a negative impact of CHF 43 million on the result. And the operating result after depreciation and amortization was slightly lower than in the previous year due to the acquisition of Finanz und Wirtschaft.
Tamedia's core print business improved its revenues by twelve percent to CHF 712.7 million, which is above the industry average of 8.2 percent gross, emphasized Tamedia CFO Patrick Eberle. The Alpha management job advertisement contributed to the good result, while a decline was recorded in rental and real estate advertisements.
The Tages-Anzeiger, the flagship of Tamedia AG, increased its revenues from CHF 390.9 million to CHF 421.5 million. Despite commuter newspapers. According to Kurt W. Zimmermann, member of the Management Board, the circulation of the Tages-Anzeiger has lost around 11,000 copies and will lose around the same amount again this year. The revenue of ZürichExpress has also grown, namely by 2.7 percent. Facts, which has had its most financially successful year, increased its revenue by 1.1 million francs or 2.5 percent. Thanks to the new online bundle, SonntagsZeitung was able to record 204 additional advertising pages in the last quarter of 2000 alone and increased its revenue by 0.9 percent. Annabelle recorded only little revenue, namely 0.2 million francs, while Schweizer Familie once again suffered a 3.8 percent drop in revenue.
Tamedia is facing difficult times in the electronic media, especially at TV 3. With total revenues of CHF 15.8 million, TV 3 recorded a deficit of CHF 53 million. Although this was CHF 7 million less than expected, a further deficit of CHF 45 million is budgeted for this year. In addition, the break-even point had to be postponed by one year and the total investment over five years had to be increased to CHF 180 million.
Tamedia does not want to be alone
Make TV
Now, of all times, the Luxembourg joint venture partner SBS wants to withdraw from the TV project. "We are in negotiations with SBS regarding a new ownership structure for TV 3. Tamedia has also been fully financing TV 3 since January 2001," said Eberle. Tamedia is therefore currently in talks "with potential and interested partners". Favre added that Tamedia's goal is to find a new joint venture partner. "We don't want to do TV alone," he said.
Winner also posted a weaker result than expected. Income of CHF 3.7 million in Winner's first year was offset by investments of CHF 16 million. Another ten million francs will be needed this year. And the AuctionWinner and PriceWinner internet platforms will be discontinued for the time being. Nevertheless, Coninx stated: "We believe in the success of electronic media and are therefore prepared to continue investing in this area."
Income of tamedia-medien*
(monetary values in CHF million)
2000 1999 Changes
in %
Tages-Anzeiger 421.5 390.9 + 7.8
SonntagsZeitung 86.4 85.6 + 0.9
Finance and economy 40.2 - -
ZurichExpress 31.6 30.7 + 2.7
Facts 46.8 45.7 + 2.5
Swiss family 35.9 37.3 - 3.8
Annabelle 32.2 32.0 + 0.6
TV 3* 7.9 4.4 + 92.5
Electronic publishing 4.6 4.9 - 6.6
Winner 3.7 - -
*TV-3 figures only appear at 50 %, as SBS previously held 50 %
Source: Tamedia
Tamedia in figures
(monetary values in CHF million)
2000 1999 Changes
in %
Turnover 822.8 769.7 + 6.9
Operating result
before depreciation and amortization 179.1 173.7 + 3.1
Operating result
after depreciation and amortization 136.4 137.3 - 0.6
Net profit 105.4 130.4 - 19.2
Employees 1924 1755 + 9.6
Source: Tamedia
