NZZ posts a loss for the first half-year

The NZZ Group's total revenue fell by 14 percent to 95.2 million francs. Although the number of subscribers rose by almost a fifth to 189,000, events had to be canceled or postponed to the second half of the year due to coronavirus, the Group wrote on Wednesday.

This had an impact on the results. Although operating expenses were also reduced by 8 percent to CHF 96.8 million, the NZZ Group posted an operating loss (EBIT) of CHF 1.2 million after a plus of CHF 8.2 million in the previous year.

The financial result was also negatively impacted by coronavirus. The bottom line was a half-year loss of CHF 3.4 million after a profit of CHF 9.4 million a year ago.

Losses in the print advertising market

In the first half of the coronavirus year, NZZ had to contend with a further decline in the print advertising market. Advertising sales on digital channels are improving, thanks in part to the expansion of the marketing network with Audienzz and the acquisition of the Archdaily Group.

Overall, however, advertising income fell by 21% or CHF 6.8 million in the first half of the year. Other income fell by 24 percent or 6.2 million. There were shortfalls in sponsorship income from events and the NZZ granted rent reductions for its operating properties.

Some recovery expected

In the second half of the year, the Group plans to hold the Swiss Economic Forum, this time in Montreux rather than Interlaken, and the Zurich Film Festival, among other events. This should mitigate the coronavirus-related decline in sales, according to reports. Fewer losses are also expected in the print advertising market. And the CH Media joint venture is also expected to recover somewhat.

Nevertheless, the year continues to be characterized by the coronavirus crisis, according to the NZZ Media Group. (SDA)