NZZ reports declining figures
The closure of the printing plant in Schlieren, ZH, pushed the NZZ Media Group into the red in 2014. The associated costs resulted in a deficit of 39.6 million Swiss francs. Subscription numbers, however, were on the rise—thanks to the digital business.
The Group generated sales of CHF 157.1 million with media consumers, CHF 3.4 million more than in 2013, as announced on Friday. This increase is partly due to the takeovers of Wiler Zeitung and Alttoggenburger in eastern Switzerland. However, the increase in digital subscriptions was reflected to a far greater extent. The Neue Zürcher Zeitung and NZZ am
Sunday, the number of digital subscriptions rose by 49 percent to around 16,600. The flip side of the coin was the situation on the advertising market, which subsidizes reading material for consumers. Advertising revenues at the NZZ Media Group fell by 2 percent. Compared to previous years, however, the decline in income slowed. Printing revenue also declined, falling from CHF 62.3 million in the previous year to CHF 59.3 million in 2014. This was due to overcapacity and price pressure, according to the press release.
Decline in sales in core business slowed
Overall, the Zurich-based media company generated sales of CHF 471.1 million with its four divisions, which is significantly less than in the previous year. At that time, the books still showed 482.4 million francs. The main reason for this was the sale of the delivery business in 2013, which is why Group CEO Veit Dengler stated in the press release: "We have slowed down the decline in turnover in our core business in recent years". In terms of the divisions' profits, the operating result of Medien NZZ with the flagship NZZ was CHF 0.9 million in the red after a profit of CHF 8.3 million in the previous year. With a plus of CHF 11.1 million, the regional media fell short of the 2013 result (CHF 12.5 million).
The Group earned millions of francs before interest and taxes from media-related activities. The Moneyhouse business information platform was added to this division in January. In return, the delivery business disappeared. In the specialist media and printing segment, operating profit halved to CHF 2.6 million, with the specialist media performing well. Newspaper and commercial printing, on the other hand, suffered greatly from overcapacity and price pressure. The Group is therefore closing its printing center in Schlieren in the middle of the year. A maximum of 125 employees are out on the street - a redundancy plan has been drawn up. The NZZ and its Sunday edition are printed by competitor Tamedia. The NZZ printing plants in Winkeln SG and Adligenswil LU will remain in operation.
Conversion on track
Operating expenses remained virtually unchanged at CHF 451.1 million. The company saved on materials and distribution, but invested in editorial offices and technology. As a result, operating profit before interest and taxes fell from CHF 30.6 million to CHF 20 million. In general, the Group says it has made progress in transforming itself from a traditional newspaper publisher into a media company with a target group-specific offering on all channels. The Group aims to generate growth through new products and services in Switzerland and other German-speaking countries.
In its outlook, the media group announces that it will continue to drive forward its strategy with a focus on its core business. The necessary investments will continue to have a negative impact on the operating result in 2015, but will bear fruit in subsequent years. (SDA)
