Stable in the bear market
Publishing: Espace Media reported solid results for 2004. Cost-cutting measures and a stock split have been announced.
Publishers Espace Media presents a decent result for 2004. Cost-cutting measures and a share split have been announced, but the bottom line is that Espace Media Groupe is unimpressed by the advertising slump. Consolidated profit fell by 7.3 percent. The Bern-based media company nevertheless speaks of a good result, because at CHF 21.5 million and a margin of 8.2 percent, profit remains at an attractive level. Despite the long dry spell, Espace Media has reported a result in the range of 18 to 24 million francs for the sixth year in a row, writes publisher Charles von Graffenried in the foreword to the annual report. This stability is due to the strategy of growth and cost reduction.
Growth and cost reduction were exemplified in 2004 by the "Berner Modell", the takeover of Bund's publishing activities by the Berner Zeitung (BZ). Espace Media largely owes the 19 percent increase in sales to a new record of CHF 260.9 million to the consolidation of Bund Verlag AG. The model already proved itself in its first year: advertising sales of the so-called "BZ-Gesamtausgabe" increased by a quarter, budget and business plan were exceeded. Bund Verlag AG was able to reduce its loss from CHF 8.5 million to around CHF 750000. At the presentation of the 2003 annual figures last May, Group CEO Albert P. Stäheli had forecast a deficit of CHF 1.5 million (see interview on the right).
Radio and TV make gains TeleBärn is also almost out of the red. The loss was reduced from CHF 738,000 to CHF 278,000. The regional broadcaster's turnover grew by 13.2 percent to CHF 3 million. TeleNewsCombi, which now accounts for 18 percent of TeleBärn's advertising revenue, was the main contributor to this growth. In terms of sponsorship, however, the station lost more than a quarter.
Participation in advertising pools also paid off for Radio Extra Bern. The City Pool and the newly launched Swiss Radio Pool accounted for 33% of income, which rose by almost a quarter despite stagnating listener numbers. Income from Internet activities fell by around 7 percent to CHF 1.04 million. The printing business also suffered a decline of 2 percent. It remains to be seen how sales will develop when the new printing center in Bern's Zentareal opens at the beginning of July. Espace Media has invested 115 million francs in the new building.
Cloudy outlook
The Group does not expect the advertising market to recover in the current year. The decline in print media in particular is forcing further cost-cutting measures in the operating area, it announced. On the other hand, the acquisition of the free newspaper 20 Minuten could lead to renewed sales growth. Espace Media is confident that its appeal against the veto of the Competition Commission will be upheld and that the deal can be completed this year.
Espace Media Groupe wants to change the rules on share ownership. The restrictions on transferability are to be relaxed and modernized. In addition, the Board of Directors is proposing to the Annual General Meeting that the par value of the shares be reduced from CHF 20 to CHF 1.
Attractive profit 2004: Espace Media Groupe.
Growth and cost reduction were exemplified in 2004 by the "Berner Modell", the takeover of Bund's publishing activities by the Berner Zeitung (BZ). Espace Media largely owes the 19 percent increase in sales to a new record of CHF 260.9 million to the consolidation of Bund Verlag AG. The model already proved itself in its first year: advertising sales of the so-called "BZ-Gesamtausgabe" increased by a quarter, budget and business plan were exceeded. Bund Verlag AG was able to reduce its loss from CHF 8.5 million to around CHF 750000. At the presentation of the 2003 annual figures last May, Group CEO Albert P. Stäheli had forecast a deficit of CHF 1.5 million (see interview on the right).
Radio and TV make gains TeleBärn is also almost out of the red. The loss was reduced from CHF 738,000 to CHF 278,000. The regional broadcaster's turnover grew by 13.2 percent to CHF 3 million. TeleNewsCombi, which now accounts for 18 percent of TeleBärn's advertising revenue, was the main contributor to this growth. In terms of sponsorship, however, the station lost more than a quarter.
Participation in advertising pools also paid off for Radio Extra Bern. The City Pool and the newly launched Swiss Radio Pool accounted for 33% of income, which rose by almost a quarter despite stagnating listener numbers. Income from Internet activities fell by around 7 percent to CHF 1.04 million. The printing business also suffered a decline of 2 percent. It remains to be seen how sales will develop when the new printing center in Bern's Zentareal opens at the beginning of July. Espace Media has invested 115 million francs in the new building.
Cloudy outlook
The Group does not expect the advertising market to recover in the current year. The decline in print media in particular is forcing further cost-cutting measures in the operating area, it announced. On the other hand, the acquisition of the free newspaper 20 Minuten could lead to renewed sales growth. Espace Media is confident that its appeal against the veto of the Competition Commission will be upheld and that the deal can be completed this year.
Espace Media Groupe wants to change the rules on share ownership. The restrictions on transferability are to be relaxed and modernized. In addition, the Board of Directors is proposing to the Annual General Meeting that the par value of the shares be reduced from CHF 20 to CHF 1.
Attractive profit 2004: Espace Media Groupe.
Stefano Monachesi
