Goldbach Group defies declining market in the first half of 2017
The Goldbach Group defended its position in the shrinking TV advertising market during the first half of the year. Among other things, it was able to renew its contracts with RTL, 3+, and AZ Medien. The profit forecast for 2017 was raised.
The group increased sales in the first half by 0.8 percent to 236 million Swiss francs. The most important division, the Swiss TV business, grew above the market with 1 percent compared to the same semester last year, Goldbach Group announced on Wednesday.
The advertising marketing company won three new TV stations as customers: AB3, Swiss 1 and Teleclub Zoom. The important marketing partnerships with RTL, 3Plus and AZ Medien were extended.
Within the Swiss marketing business (Ad Sales Switzerland), the online sector also developed positively, growing by 4 percent. In the first half of the year, Goldbach agreed a partnership with Tamedia in the area of video marketing, among other things.
Automotive industry cautious
Radio marketing, on the other hand, with the Goldbach subsidiary Swiss Radioworld, lost 14 percent in sales. The Group writes that customers from the automotive industry, which is important for the radio business, were particularly cautious. The short-term bookable radio business was characterized by high volatility.
Overall, operating profit (EBITDA) in the Swiss marketing business increased by 1.2 percent to CHF 18.3 million. In the strategic growth market of Germany, the break-even point from the second half of 2016 was narrowly confirmed.
Successes in Germany since the beginning of the year include the marketing of smart TV apps from well-known device manufacturers. Sales of CHF 5.3 million (up 50 percent) resulted in a narrowly negative operating profit (EBITDA) of CHF 0.2 million for Ad Sales Germany, following a loss of CHF 1.3 million in the previous year.
Forecast revised upward
Following far-reaching restructuring, the troubled Marketing Services segment is back in the black. Below the line, the entire Group posted a significant increase in profitability. Operating profit (EBITDA) increased by 23 percent to 16.4 million. Net profit amounted to 4.6 million Swiss francs (plus 24 percent).
Goldbach Group raised its full-year forecast following the positive first half. It now expects an increase in operating profit of around 10 percent, instead of a single-digit percentage increase. Net profit is now expected to be between 10 and 12 million Swiss francs (previously: 9 to 11 million Swiss francs). Expectations regarding sales are confirmed with organic sales growth in the low single-digit percentage range. (SDA/hae)
