TX Group significantly increases operating income

Key results

Slight increase in consolidated revenues: The acquisition of Clear Channel Schweiz at the end of March resulted in a 3.3% growth in consolidated revenues compared to the previous year. Organic revenues declined by 2.4%, among other reasons, due to lower paper costs which reduced print revenue.

Goldbach, 20 Minuten and Tamedia are working on the transformation: Despite the acquisition of Clear Channel Switzerland, operating costs were lower than in the previous year (CHF -3.3 million). However, the margins of Goldbach, 20 Minuten and Tamedia remained at a low level. The cost base will be further reduced in order to build a future-proof structure and a sustainable financial basis.

Significant increase in the result thanks to SMG Swiss Marketplace Group: The adjusted net operating income (EBIT adj.) improved by 34% compared to the previous year. The adjusted contribution of the associates and JVs increased to CHF 20.5 million (PY: CHF 16.5 mn), with SMG Swiss Marketplace Group (TX Group share: 30.74%) contributing a pleasing CHF 10.4 million (PY: CHF 2.7 mn).

Details about the segments

TX Markets: stable revenue levels at JobCloud – SMG delivers very good result
The TX Markets segment recorded stable revenues compared to the previous year and managed to increase net operating income.
The job platforms run by JobCloud (fully consolidated, with TX Group holding 50% of the capital) proved resilient in an economic situation affected by uncertainty. The market leader finished the first half of the year with stable revenue levels. The market environment in Austria is more difficult. Persistently high inflation resulted in a cautious HR policy, particularly at medium-sized and large companies, which had a negative impact on business at market leader Karriere.at (TX Group holds 24.5% indirectly as JobCloud AG holds 49%). SMG Swiss Marketplace Group (TX Group holds 30.74%, at equity consolidation) performed very well in the first half of the year thanks to revenue growth and higher efficiency. All four divisions (Real Estate, Automotive, General Marketplaces, Finance & Insurance) contributed to revenue and income growth. The solid foundations are now helping to deliver accelerated growth and an ongoing increase in profitability.

Revenues in CHF mn

EBIT adj. in CHF mn (including margin)

Goldbach: investments in transformation
The revenues of Goldbach increased significantly through the acquisition of Clear Channel Switzerland. Advertising customers also showed some reluctance in the first half of the year. As a result of this, the negative trend for revenues in the traditional TV marketing business persisted. Despite the difficult market conditions, Goldbach invested in the transformation of the company, including the development and expansion of an advertising booking platform. In terms of out-of-home advertising, the acquisition of Clear Channel Switzerland was completed. The remaining shares attributable to non-controlling interests of Neo Advertising were duly acquired at this time. A very positive impact on Goldbach’s results is expected in the medium term through synergies in out-of-home advertising and investments made in the transformation process.

Revenues in CHF mn

EBIT adj. in CHF mn (including margin)

20 Minuten: improvements to the product
20 Minuten, which is financed through advertising alone, managed to achieve slightly higher revenues compared to the previous year, while net operating income was down slightly. Various improvements were made to the product, and a reorganisation of editorial resources delivered a real impetus in journalism terms. The revised journalism concept is based on a consistent mix of news, entertainment and inspiration. There is an ongoing drive to improve the digital presence of 20 Minuten in terms of design and user-friendliness, with the digital share of revenues amounting to a pleasing 76%. The revamped print edition of 20 Minuten has also been well received by the market and managed to counteract some of the structural decline. In the case of investments abroad, the digital editions of L’essentiel in Luxembourg and heute.at in Austria performed particularly well.

Revenues in CHF mn

EBIT adj. in CHF mn (including margin)

Tamedia: slight improvement in economic situation
Tamedia recorded a slight decline in revenues compared to the previous year, but significantly increased its operating income and margin.
Operating expenses declined due to lower distribution and rental costs, while advertising revenue increased slightly. The business climate remains tough. The challenges for Tamedia include the digital transformation of the core journalism business and growth in the digital advertising market. Structures were modified and simplified in the first half of the year, particularly in the editorial departments of the German-speaking newspapers in Switzerland, in order to be even more agile in the digital world. The print business remains important to the company. The average value creation for each print subscription sold currently is clearly in excess of digital revenues. Digital growth is crucial, however, as the decline in print continued steadily.

Revenues in CHF mn

EBIT adj. in CHF mn (including margin)

Group & Ventures: cost savings at Group level on track
The Group was able to reduce its cost base further, achieving a lower level than the previous year. Contributing factors included cost reductions within central services and a decentralisation of the IT and data teams. The target, as announced three years ago, of saving CHF 20 million at Group level by the end of 2023 will be met this year.
Since early April, the real estate part of the Group has continued to make progress under a new business manager, with a new construction project on the Werdareal site at the top of the agenda. In the area of ventures, several fintech investments reached important milestones. Additionally, TX Ventures received the green light from the regulatory authority for the launch of the “TX Ventures Fintage Fund I”.

Revenues in CHF mn

Alternative Performance Indicators: TX Group uses the following alternative performance indicators: Operating income before depreciation and amortisation (EBITDA), Operating income before effects of business combinations (EBIT b. PPA), Cash flow after investing activities in property, plant and equipment and intangible assets (FCF b. M&A), Normalised consolidated income statement (key figures of the normalised consolidated income statement are referred to as adjusted, for example EBIT adj.).

Organisational information