Tamedia with a solid result in a difficult market environment

Zurich, 30 August 2012 – Tamedia's half-year figures for 2012 reflect the developments that have taken place in the Swiss advertising market. The advertisement statistics compiled by the Swiss media association (Verband Schweizer Medien) indicate a fall of 12 per cent for print media in terms of net advertising revenues and a 10 per cent drop in the case of daily newspapers. Meanwhile, job advertisements were dealt a particularly severe blow, down by 23 per cent compared with the first six months of 2011. Tamedia's revenues duly fell by 5.4 per cent to CHF 524.0 million (previous year: CHF 554.2 million). Two thirds of this fall can be attributed to the Print Regional business division. The revenues recorded by the Digital business division were lower than expected. The business division contributed 12.1 per cent (previous year: 11.1 per cent) to total revenues, while the Print Regional business division contributed 47.2 per cent (previous year: 48.7 per cent). The Print National business division once again delivered a strong performance, contributing 40.8 per cent to total revenues (previous year: 40.2 per cent).

The lower advertising revenues also had an impact on income. Operating income before depreciation and amortisation (EBITDA) fell by 22.5 per cent to CHF 89.3 million (previous year: CHF 115.1 million). The EBITDA margin is now 17.0 per cent (previous year: 20.8 per cent). Operating income (EBIT) fell by 31.6 per cent to CHF 60.3 million (previous year: CHF 88.1 million). The EBIT margin is 11.5 per cent (previous year: 15.9 per cent). Net income from continuing operations declined to CHF 59.3 million (previous year: CHF 87.3 million). Radio and TV stations in particular, along with specialist agricultural and car magazines, are not included in continuing operations. Total comprehensive income including discontinued operations now amounts to CHF 73.7 million (previous year: CHF 87.7 million). Special items totalling CHF 19.5 million are included in this figure. These comprise gains (after tax) from the disposal of Capital FM, TeleBärn and TeleZüri activities, totalling CHF 14.2 million, and the decrease of CHF 5.3 million in the expected amount of the last instalment towards the purchase price obligation for Edipresse Suisse.

Key Figures

¹ The figures of the prior period have been adjusted with retroactive effect due to the reclassification of discontinued operations.

Print Regional
The revenue of the Print Regional business division decreased by 11.7 per cent to CHF 278.4 million. In what was a negative market environment, most regional daily and weekly newspapers recorded lower revenues than during the first half of the previous year. Particularly marked falls in revenue were recorded by Tages-Anzeiger with its job supplements Alpha and Stellen-Anzeiger, as well as by 24heures and Tribune de Genève. Half of the fall in revenue recorded by the Print Regional business division was due to a decrease in sales of job advertisements. In contrast, printing facilities, which are also included in the Print Regional business division, exceeded expectations. The stable readership figures for regional dailies was another gratifying aspect. Operating income before depreciation and amortisation (EBITDA) for the Print Regional business division fell from CHF 52.8 million to CHF 41.7 million. This equates to what remains a sound EBITDA margin of 15.0 per cent (previous year: 16.7 per cent). Operating income at EBIT level also fell, down from CHF 34.2 million to CHF 22.7 million. The EBIT margin is now 8.2 per cent (previous year: 10.8 per cent).

Print National
The revenues recorded by the Print National business division declined by only 4.2 per cent to CHF 214.0 million. The lower figure can mainly be attributed to Femina, Finanz und Wirtschaft, Le Matin and SonntagsZeitung. The 20 Minuten commuter newspapers and the magazines Annabelle, Das Magazin and Schweizer Familie were able to largely maintain the previous year's revenue figures. The business magazine Bilan and the Ticino commuter newspaper 20 minuti, which moved into the black during only its second half-year, were included in the figures for the first time. With operating income before depreciation and amortisation (EBITDA) of CHF 51.4 million (previous year: CHF 56.2 million), the Print National business division has once again demonstrated its earning power. Meanwhile, income levels fell with regard to the publications Finanz und Wirtschaft and Le Temps, which are highly dependent on the financial market, and with regard to the women's magazine Femina. Operating income (EBIT) was down from CHF 53.5 million to CHF 48.6 million. This puts the EBIT margin at a pleasing 22.7 per cent, slightly below the previous year's level (23.9 per cent).

Digital
The online media reported under the Digital business division were able to maintain their revenue levels for the greater part, with a drop of only 1.0 per cent to CHF 63.5 million. Both 20 Minuten Online and the Newsnet platforms once again strongly expanded their reach over the previous year. Investment in editorial teams and the expansion of the advertising and service portals did not prove as profitable as had been hoped. Both 20 Minuten Online and Newsnet developed less favourably than expected. In contrast, the real estate portal homegate.ch recorded renewed growth in revenues, whilst the Jobup jobs portals felt the effects of the sluggish labour market and, in common with the car4you.ch site and the small ads platform piazza.ch, suffered a fall in revenues. Other factors impacting on income levels included investments in the successful expansion of the directory platform search.ch and the costs associated with the now abandoned auction platform scoup.ch. The Digital business division's operating income before depreciation and amortisation (EBITDA) fell by CHF 10.0 million to CHF –3.8 million (previous year: CHF 6.2 million). Operating income (EBIT) was also negative, at CHF –11.0 million (previous year: CHF 0.5 million). The EBIT margin is now –17.3 per cent (previous year: 0.8 per cent).

The expansion of the Digital division progressed further in the first half-year 2012. After receipt of the consent of the competition commission, 20 Minuten AG acquired a 25.8 percent investment in the Italian language news portal tio.ch. Since summer 2011, 20 minuti – the youngest member of the 20 Minuten media union – and tio.ch had already exchanged content on a partnership basis. Also after receiving the consent of the competition commission, homegate AG took over 20 percent of the real estate portal immostreet.ch as of 31 July 2012. The investment will be increased to 100 percent by 2016 at the latest. 

Overview segment information

¹ Operating revenues

² Operating income before depreciation and amortisation

³ Operating Income

⁴ The figures relating to the prior period have also been adjusted with retroactive effect due to the reclassification of the discontinued operations.