Tamedia records sharp fall in profits
Tamedia has presented its 2008 financial statements: Due to expansion costs and significant tax and sales-related effects, the media group’s earnings declined. However, revenue surged by 20 percent due to acquisitions. Tamedia is not very optimistic about the 2009 advertising market, but it plans to continue its expansion strategy.
The media group Tamedia earned less in 2008 due to expansion costs and high tax and sales effects. Profit fell by 29.8 percent to 105.8 million Swiss francs. Sales, on the other hand, climbed by 20.8 percent to 897.5 million Swiss francs. The increase was mainly due to the inclusion of the Bern-based Espace Media Groupe for the first time for a full year, Tamedia announced on Wednesday at the annual media conference.
The commuter newspapers 20 Minuten, L'essentiel and News as well as the online platforms Homegate and Newsnetz also contributed to the growth. The takeover of Espace Media Groupe has progressed rapidly, it is also reported. There was no news on the future of the Bernese newspaper Der Bund or the announced cost-cutting measures at the Zurich Tages-Anzeiger. The only thing that was said was that work was being done on the further development of the regional daily newspapers in Berne and Zurich as part of various projects.
Slump in advertising revenue
The negative economic trend was reflected in declining advertising sales, particularly in the second half of 2008. Homegate and Espace Media Groupe were responsible for write-downs of CHF 34.5 million. As a result, operating profit (EBIT) fell by 10.6 percent to CHF 119.4 million. Tamedia intends to reduce the dividend from 4 to 3 francs per share.
Tamedia is not very optimistic for 2009: the Group does not yet expect an economic recovery. The expected decline in advertising investments will drive structural change in the media industry. Tamedia had already cut costs at the end of 2008 and will continue to review those media that have not reached their targets.
Expansion strategy continues
The Tamedia Group is continuing its expansion strategy despite the cost-cutting measures. After the Espace Media Groupe, the Zurich-based company wants to buy the leading publisher in French-speaking Switzerland, Edipresse. The takeover still has to be approved by the Competition Commission.
The commuter newspapers 20 Minuten, L'essentiel and News as well as the online platforms Homegate and Newsnetz also contributed to the growth. The takeover of Espace Media Groupe has progressed rapidly, it is also reported. There was no news on the future of the Bernese newspaper Der Bund or the announced cost-cutting measures at the Zurich Tages-Anzeiger. The only thing that was said was that work was being done on the further development of the regional daily newspapers in Berne and Zurich as part of various projects.
Slump in advertising revenue
The negative economic trend was reflected in declining advertising sales, particularly in the second half of 2008. Homegate and Espace Media Groupe were responsible for write-downs of CHF 34.5 million. As a result, operating profit (EBIT) fell by 10.6 percent to CHF 119.4 million. Tamedia intends to reduce the dividend from 4 to 3 francs per share.
Tamedia is not very optimistic for 2009: the Group does not yet expect an economic recovery. The expected decline in advertising investments will drive structural change in the media industry. Tamedia had already cut costs at the end of 2008 and will continue to review those media that have not reached their targets.
Expansion strategy continues
The Tamedia Group is continuing its expansion strategy despite the cost-cutting measures. After the Espace Media Groupe, the Zurich-based company wants to buy the leading publisher in French-speaking Switzerland, Edipresse. The takeover still has to be approved by the Competition Commission.
