Ringier slightly increases operating profit
The Ringier media group slightly increased its operating profit in 2019, while revenues were slightly lower. The persistently declining advertising market and lower print revenues impacted earnings, while the digital business continued to grow in importance.
Sales declined by CHF 19.4 million to CHF 984.8 million, Ringier announced on Wednesday. On the other hand, the media group increased its operating profit (Ebitda) for the fifth year in a row to 114.1 million Swiss francs (+1.1 million).Despite declining advertising revenues and slightly lower sales, 2019 was a "solid business year," Ringier wrote.
The Group emphasized its successful digital transformation. The digital share of the Ringier Group's operating profit has been increased for the seventh time in a row to 72 percent by now, it said. This makes Ringier one of the most consistently transformed media companies in Europe today.
Corona effects unclear
The outlook for the current year is unclear, as Ringier is not yet able to quantify the impact of the Corona crisis on the economic earnings situation. The Group assumes negative effects in the amount of a "substantial double-digit million figure.
The first effects of the Corona pandemic on individual Ringier business units were felt in March: On the one hand, Ringier media brands recorded historically high access figures; on the other, advertising revenues plummeted massively.
Due to the cancellation of major events and concerts, business areas such as Ticketcorner were barely able to go about their business practically overnight. The digital job markets are also suffering. Positive trends were reported by the Ringier Group's e-commerce unit.
Despite the Corona-related impact, Ringier does not intend to change its focus. "We will continue to invest in independent journalism, digital marketplaces and cutting-edge technology," Group CEO Marc Walder is quoted as saying in the statement. (SDA/hae/pd)
| Key figures of the Ringier Group in CHF million | ||
| 2018 | 2019 | |
| Sales by regions | 1’004.20 | 984.8 |
| Switzerland | 798.0 | 782.4 |
| Eastern Europe | 198.6 | 190.1 |
| Asia & Africa | 7.6 | 12.3 |
| Sales by revenue type | 1’004.20 | 984.8 |
| Digital revenues | 466.1 | 504.6 |
| Sales revenue | 236.8 | 212.1 |
| Advertising revenues | 144.6 | 130.5 |
| Printing revenues | 82.9 | 62.2 |
| Event revenues and other media revenues | 73.8 | 75.4 |
| EBITDA | 113.0 | 114.1 |
| EBITDA margin | 11.3% | 11.6% |
