NZZ Media Group with more profit despite lower sales
Last year, the NZZ Media Group generated more revenue from its reader market and business media, thereby offsetting declines in the advertising market. As a result, it posted a profit of 22.2 million Swiss francs.
Sales fell due to the partial withdrawal from the printing business. The Group generated sales of CHF 158.4 million with media consumers, one percent more than in the previous year, as announced on Thursday. The growing number of subscribers and revenues from new products, such as NZZ Geschichte and FM1Today, were responsible for this development. Advertising revenue declined by 2 percent. However, due to the integration of advertising marketing into the NZZ media group, the figures are only comparable with the previous year to a limited extent. Other income increased by 6 percent. Printing revenues declined significantly. Due to the sale of the Appenzell printing plant and the closure of the Schlieren printing center, it fell by 26 percent to CHF 43.8 million. Overall, the Zurich-based media company generated sales of 456.4 million francs with its four divisions. In the previous year, the figure was 471.1 million francs.
Cost reduction through printer closure
However, the partial withdrawal from the printing business not only led to lower sales, but also to lower costs. Operating expenses fell by CHF 16.3 million compared to the previous year to CHF 434.8 million. Despite investments in publishing, the operating result before interest and taxes therefore improved by 8 percent to CHF 21.6 million. The financial year shows that the strategic focus on publishing is beginning to take effect. "We are maintaining this course. In the coming year, we will improve our profitability, particularly in the NZZ Media division", Group CEO Veit Dengler is quoted as saying in the press release.
New digital products planned
The Group intends to continue to counter the declining print advertising market with growth in the reader market and the expansion of the Business Media division. This year, sales in this area increased by CHF 9.1 million to CHF 40.8 million. This increase is mainly due to the conference business and the integration of the design and architecture portal Architonic. Despite higher costs, profit improved by CHF 0.8 million to CHF 8.4 million. NZZ Medien and the Group's regional media want to continue to grow with new and improved digital offerings. (SDA)
