Thanks to one-off effects, Tamedia reports outstanding net income of CHF 334.0 million in 2015 – profit participation of CHF 14.9 million for employees

Zurich, 15 March 2016 – The revenues of the Swiss media group Tamedia fell by 4.5 per cent in 2015 to CHF 1,063.8 million (previous year: CHF 1,114.5 million) as a consequence of the economic slowdown and ongoing structural change. Despite this, operating income before depreciation and amortisation (EBITDA) increased slightly, at CHF 243.4 million (previous year: CHF 240.7 million). However, operating income (EBIT) fell by 23.3 per cent to CHF 130.6 million (previous year: CHF 170.4 million). This was caused by impairments on goodwill amounting to CHF 40.3 million. The need for impairment mainly derived from the fact that business was weaker than expected in the Publishing Regional and Publishing National business divisions and at individual digital companies in 2015 and that the forecasts for growth were adjusted in consequence. In contrast, net income was increased to CHF 334.0 million thanks, in particular, to the revaluation gain secured through incorporating search.ch in a joint directory company with Swisscom. Tamedia's employees will participate directly in the outstanding net income with a profit participation of CHF 14.9 million.

Its early and long-term investments in digital journalism paid off for the Tamedia media group in the 2015 financial year. The news platforms of 20 Minuten reach over 3 million people in Switzerland on a monthly basis. Together with the news platforms of the daily newspapers, which are combined in Newsnet, they are by far the most popular digital sources of information in Switzerland and report sharply rising revenues. Expansion of the commercial digital platforms was further advanced in 2015. The acquisition of the Ricardo Group, which took place in the second half of 2015, and Schibsted's shares in tutti.ch and car4you.ch made Tamedia the leading provider of digital classified advertisements in Switzerland. Tamedia achieved 28.4 per cent of revenues and 37.7 per cent of EBIT with commercial and journalistic digital platforms (pro forma). The company's strategic objective of achieving 50 per cent of EBITDA with digital offerings is likely to be achieved in the current financial year through the full-year consolidation of the Ricardo Group in 2016 and through the investment in Swisscom Directories AG.

¹    Previous year's figures were adjusted on the basis of a restatement

²    Proposed appropriation of profit by the Board of Directors

³    Equity to total assets

⁴    The margin relates to revenues

⁵    Number of full-time equivalents

search.ch posts revaluation gain of CHF 210.2 million

The directory service search.ch has been part of Swisscom Directories AG, which previously operated local.ch, since 9 July 2015. Tamedia now holds 31 per cent of the joint company with Swisscom, which ranks among the most successful Swiss online platforms with over 5 million users per month. As a consequence of the merger, the shares in search.ch were revalued. The difference of CHF 210.2 million between the market value secured through a pre-emptive tender right and the value of the outgoing equity was recognised in the income statement in financial income, which led to Tamedia's outstanding net income. The contribution to net income by local.ch and search.ch was also shown as a share of net income of associated companies in the Digital division from 9 July 2015. 

New segment structure: Publishing Regional and National with digital platforms and recognition of the share of net income of associated companies in the divisions

The segmentation was adjusted slightly with the half-year report for 2015. The Print Regional and Print National business segments are now run as the Publishing Regional and Publishing National business segments. Publishing Regional and Publishing National now also contain the revenues and net income of the digital publishing platforms, which were previously reported in the Digital business segment. The adjustment reflects the convergence in the editorial teams' method of working and the increased significance of combined subscriptions. The share of net income of associated companies and joint ventures is also restated in the consolidated income statement and in the segment information within EBITDA. The net income from investments in associated companies and joint ventures is considered an operational component of the net income, particularly in connection with the expansion of the Digital division and its increased significance for business development.

Publishing Regional challenged by the slowdown in the advertising market

The slowdown of the advertising market challenged the publications of the Publishing Regional business division in the reporting year. In addition, the division's revenues fell due to a decrease in the offset print orders of the Ziegler Druck printer, which suspended its operations as of the end of the reporting year. Thanks to consistent implementation of prudent collaboration models between publications and gaining additional third-party customer orders in newspaper printing, the Publishing Regional business division succeeded in closing out the year with a solid net income. Revenues (operating revenues) from third parties in 2015 fell by 7.0 per cent to CHF 468.8 million (previous year: CHF 503.9 million). The operating income before depreciation and amortisation (EBITDA) fell by 20.9 per cent to CHF 81.8 million (previous year: CHF 103.4 million), which had an impact on the EBITDA margin, which is now at 15.7 per cent (previous year: 18.5 per cent).

Publishing National posts a sharp rise in online advertising

In the Publishing National business division,magazines and Sunday newspapers in particular were impacted by an overall significant slowdown of the advertising market. Among others, luxury brands as well as fashion brands adjusted down their advertising budgets following the appreciation of the Swiss franc against the euro in January 2015. However, online advertising posted significant gains in all media. Revenues (operating revenues) from third parties generated by the Publishing National business division fell by 6.5 per cent in 2015 to CHF 374.0 million (previous year: CHF 400.0 million). Operating income before depreciation and amortisation (EBITDA) fell by 12.1 per cent to CHF 72.5 million (previous year: CHF 82.5 million). The EBITDA margin fell accordingly to 19.3 per cent (prior year: 20.4 per cent).

Digital posts high EBITDA margin

The performance of the Digital business division was largely influenced by the deconsolidation (affecting revenues and costs) of search.ch as of 9 July 2015, the first-time consolidation of the Ricardo Group as of 8 September 2015 and the first-time consideration of Doodle, home.ch and trendsales.dk during an entire reporting period. Revenues (operating revenues) from third parties generated by the Digital business division rose by 5.0 per cent in 2015 to CHF 221.0 million (previous year: CHF 210.5 million). Operating income before depreciation and amortisation (EBITDA) rose by 12.5 per cent to CHF 70.4 million (previous year: CHF 62.6 million). The EBITDA margin reached a gratifying 31.9 per cent (prior year: 29.7 per cent).  

Press conference and information for financial analysts

The press conference will take place today Tuesday, 15 March 2016, at 10.00 a.m. at the Tamedia head office at Werdstrasse 21 in Zurich. An analysts' conference will also be held for analysts and investors at 12.00 p.m. If required, a conference call in English will be offered on the following day for investors and analysts from abroad.

Information on the Annual General Meeting 2016

The Annual General Meeting of Tamedia AG will take place on 8 April 2016 at 3.00 p.m. in the Kongresshaus Zürich at Claridenstrasse 5, 8002 Zurich.