NZZ Media Group increases profit
The NZZ Media Group's earnings for the first half of fiscal year 2011 exceeded the previous year's figure by 3.2 million Swiss francs. The main reasons for this are newly acquired media outlets, increased revenue, and improved capacity utilization at the printing centers.
According to the press release, the NZZ Media Group increased its operating revenues by 4.1 percent to CHF 261.0 million, mainly thanks to newly acquired media Thurgauer Zeitung and Anzeiger Luzern as well as higher revenues in the electronic media sector, with all revenue types recording an increase in sales. Advertising sales increased by 3.1 percent year-on-year, mainly due to acquisitions. Revenues from subscription and single-unit sales recorded a slight increase despite a continued slight decline in newspaper circulation due to price increases and the addition of new titles. Thanks to successful market development, print orders were added, resulting in a 3.5 percent increase in sales over the previous year. The positive sales trend in electronic media continued in the first half of 2011. The expansion in the online sector and, in particular, the higher revenues from the radio and TV business recorded an increase in sales of 15.4 percent.
Total operating expenses increased by 2.2 percent year-on-year to 231.7 million Swiss francs. The increase in costs was mainly due to investments in the areas of publishing and digital media, but new print orders also resulted in additional expenses. In relation to the increase in sales, costs increased at a lower rate, which led to an increase in the operating result (Ebit) of 5.3 million Swiss francs to 29.3 million Swiss francs. The Ebit margin increased from 9.6 percent to 11.2 percent.
Outlook difficult
Since the beginning of the year, the good half-year result in particular has led to an increase in equity of CHF 11.3 million to CHF 440.9 million, despite dividend payments of CHF 12.0 million. This increases the equity ratio by one percentage point to 70 percent.
The first half of 2011 was characterized by turbulent global events, which also had a direct impact on politics and the economy in Switzerland, the company writes in the statement. The continuing political and economic uncertainties are currently hampering the outlook for the second half of the year. Accordingly, expectations are cautious.
