TX Group sets medium-term margin targets for the Group companies
The TX Group believes that the media industry is undergoing profound structural change. Competitive margins are a prerequisite for securing long-term survival in such a challenging environment, the Zurich-based media group wrote on Thursday ahead of the Investors' Day.
Against this backdrop, the TX Group has defined medium-term margin targets for its Group companies. For example, the commuter media in the 20 Minuten division should achieve an adjusted EBIT margin of 14 to 16 percent by 2026. The Tamedia division with the traditional paid media brands should achieve a margin of 8 to 10 percent by 2026.
Excluding the out-of-home advertising business, the target for the advertising sales company Goldbach is 18 to 22%. The target for Goldbach Neo out-of-home advertising is a margin in the range of 12 to 14 percent.
The TX Group defines adjusted EBIT as the normalized operating result before depreciation, amortization and impairment losses from business combinations. At the end of the first half of 2023, all divisions were still far from the targets set for 2026.
With today's publication of the margin ranges, TX Group is fulfilling the promise it made last year. At the Investors' Day, the Group will explain in detail the development of the media and advertising market and the targets for the individual companies.
The media release reaffirms the distribution policy. Normally, 35 to 45 percent of free cash flow before mergers and acquisitions and after dividends to minority interests and repayment of lease liabilities will be distributed. (SDA)
