Balanced year 2016 for SRG SSR thanks to savings program
As planned, the SRG returned to profitability in 2016. After extraordinary events in 2015 had caused a deficit, it launched a cost-cutting program that proved effective.
Extraordinary events (reduction in the technical interest rate of the pension fund, additional annual costs of 35 million Swiss francs following the value-added tax ruling of the Federal Supreme Court) had caused a deficit at SRG in 2015. As a result, the company launched an austerity program. This made the balanced result possible. 2016 was also a strong year in terms of journalism, with audience magnets such as the "Gotthard" film, the opening of the base tunnel, the Olympic Games and the European Football Championship.
The 2016 surplus amounts to 25 million Swiss francs, although 13 million of this is due to the early reversal of provisions for the reduction in the technical interest rate of the pension fund, as this measure was implemented more quickly than planned.
In the upheaval of the advertising market, advertising revenues have been under pressure since 2012. In 2016, they fell by CHF 12.6 million compared to 2015. Compared to 2014, they are almost CHF 30 million lower. Fee income increased by CHF 12.8 million due to population growth. In addition, there were 9.6 million Swiss francs due to a special effect (fees transferred in 2016 from 2015).
In the previous year, provisions for the reduction in the technical interest rate and for job cuts had massively increased personnel expenses. In 2016, personnel expenses decreased by 124.7 million Swiss francs. From 2017, the savings program will reduce personnel expenses by CHF 15 million per year.
The SRG Group - i.e. the parent company with its subsidiaries TPC (audiovisual production), SwissTXT (digital technology) and small companies - posted a surplus of CHF 29 million.
Successful cooperations
SRG has renewed its agreement with the Swiss film industry ("Pacte de l'audiovisuel") and increased its investment in Swiss film to CHF 27.5 million per year.
At the beginning of 2016, SRG made numerous proposals for cooperation with publishers. In the meantime, 20 private media are benefiting from this. For example, SRG provides up-to-date news videos, via the Swiss Dispatch Agency or directly.
In the upheaval of the media, SRG has ensured stability in its management with a carefully planned change of staff. On May 1, 2017, Jean-Michel Cina will become Chairman of the Board of Directors, and on October 1, Gilles Marchand will become Chief Executive Officer.
2017 will be a challenging year. SRG is likely to generate less revenue: With the new Radio and Television Act, its share of fee income will fall, while 34 private regional broadcasters will receive more money. The advertising market also remains challenging.
The Annual Report will be submitted to the SRG Delegates' Meeting on April 29, 2017 for approval. In the digital age and for reasons of economy, it will only be published online. From May 2, 2017, it will be available at www.srgssr.ch can be viewed.
