SRG: Deficit lower than expected

Additional savings and efficiency efforts, higher commercial revenues and the elimination of commitments explain this pleasing development, the company writes in a statement. Thanks to the better-than-expected economic situation, advertising revenues increased strongly. Also contributing to the better result were the abandonment and postponement of IT projects and the reduction of distribution costs, according to the statement. The pension fund recovered quickly, eliminating the need for restructuring measures. The budget development was slightly above expectations and brought additional income from reception fees.

The economic environment remains volatile, however, and SRG's financial room for maneuver remains narrow in view of the necessary investments in technology and infrastructure, the statement continues. Barring unforeseen events such as another economic slump, SRG will close 2011 in the black.

Operating result significantly improved

Compared to the previous year, the 2010 corporate result improved by 34.4 million Swiss francs, i.e. from -46.7 million to -12.3 million Swiss francs. Operating income increased by 3.2 percent from CHF 1,563.1 million to CHF 1,612.7 million, mainly due to an improvement in commercial income (CHF +32.2 million) and additional income from reception fees (CHF +15.7 million). By contrast, operating expenses for the 2010 sports year (Winter Olympics in Canada, Ice Hockey World Championship in Germany, Football World Cup in South Africa) showed only a slight increase of 0.3 percent compared to 2009, i.e. from CHF 1608.1 million to CHF 1612.5 million.

Due to the weak euro and the likewise weakening US dollar, the financial result had an exceptionally strong negative impact of -12.5 million Swiss francs (previous year -1.7 million). The operating result improved year-on-year from -45.0 million to +0.2 million Swiss francs and is thus already close to the break-even result targeted for the coming years.