Free newspapers influence Tamedia's second half-year
The Zurich-based media group Tamedia is satisfied with its first-half results, released on Thursday, «given the circumstances.» As CFO Christoph Tonini said, the results were in line with the company’s own expectations. In the second half of the year, the planned new free newspaper will affect the bottom line.
The Zurich-based media group Tamedia is satisfied with the results published on Thursday for the first half of the year "in line with the circumstances". As Chief Financial Officer Christoph Tonini said, the company was in line with its own expectations. In the second half of the year, the planned new free newspaper will have an impact on the accounts. Despite sales growth, the publishing house earned less in the first half of 2007 than in the previous year. The level of consolidated sales for the year as a whole depends heavily on when the acquired Bern media group Espace Media is consolidated. Espace will probably be included in Tamedia's accounts from October 1 or November 1, Tonini told the news agency AWP. The publishing house achieved a turnover of CHF 250 million last year.
The Newspapers segment will face the greatest burdens in the second half of the year. On the one hand, the launch of the new commuter newspaper planned in collaboration with the Berner Zeitung and Basler Zeitung will play a role. Tonini expects the newspaper to be launched in November. Decisions are to be made by the end of this week.
In addition, the start-up investments for the new free newspaper L'Essentiel planned in Luxembourg will also have a negative impact. For the other three divisions, Magazines, Electronic Media and Services, the CFO expects the margins achieved in the first half of the year to be maintained.
Tonini was not satisfied with the start to the second half of the year: "July and August did not go well and fell short of our expectations." The growth of the job market and the national elections in October should continue to provide a tailwind in the remaining months of the year.
The Newspapers segment will face the greatest burdens in the second half of the year. On the one hand, the launch of the new commuter newspaper planned in collaboration with the Berner Zeitung and Basler Zeitung will play a role. Tonini expects the newspaper to be launched in November. Decisions are to be made by the end of this week.
In addition, the start-up investments for the new free newspaper L'Essentiel planned in Luxembourg will also have a negative impact. For the other three divisions, Magazines, Electronic Media and Services, the CFO expects the margins achieved in the first half of the year to be maintained.
Tonini was not satisfied with the start to the second half of the year: "July and August did not go well and fell short of our expectations." The growth of the job market and the national elections in October should continue to provide a tailwind in the remaining months of the year.
