Goldbach Group AG
Goldbach Group AG: Half Year Result 2015
Goldbach Group AG / Key word(s): Half Year Results Ad hoc press release Half Year Result 2015: Revenue grows by 4.5% to CHF 227 million and net profit rises to CHF 2.4 million – Core business Ad Sales Switzerland resists economic cooldown – Radio business continues to improve – Plans to expand in Germany – Changes to composition of Board of Directors – Substantial improvement in net profit expected for 2015 as a whole Küsnacht-Zurich/Switzerland, 21 August 2015. SIX Swiss Exchange-listed leading marketing services provider Goldbach Group reported encouraging progress for the first half of 2015. The measures for concentrating and streamlining the portfolio, which were introduced in 2014 as a result of the strategy analysis, are beginning to take effect and are reflected in the results for the first half of 2015. Despite the challenging environment, revenue increased by 4.5% to CHF 226.8 million. Profitability also improved due to the withdrawal from individual markets in Eastern Europe and despite the expansion costs for the German market. Operating profit before depreciation and amortization (EBITDA) increased by 5.9% to CHF 11.9 million and operating profit (EBIT) rose by 9.2% to CHF 10.7 million. The net profit attributable to shareholders of Goldbach Group for the first half of 2015 stands at CHF 2.4 million, in comparison to the previous figure of CHF 1.3 million (+75%). Development of net revenue and earnings The Ad Sales Switzerland segment, which generate the majority of the Group’s revenue, could increase its revenue by 8.5% to CHF 197.8 million. This positive development was due in particular to high single-digit growth in the TV business. In addition, we are marketing the new Swiss advertising window of the French TV station D8 since June 2015. With a growth of 26%, the Radio business also performed well in the first half of 2015. The measures introduced in early of 2014 to increase the attractiveness of radio as a medium are starting to have an effect. The Online business, however, remains challenging. Low single-digit growth in the Video business was not enough to compensate for the lower revenue in the Display business. The Ad Sales Other segment performed solidly in the Austrian and Polish markets during the first half of 2015. Due to divestments and currency factors, the net revenue figure of CHF 9.6 million is lower by CHF 2.8 million than in the previous year. The Ad Sales Germany segment, which is currently under expansion, generated a net revenue of CHF 1.4 million for the first time. Seventeen (mostly small) stations were under contract as of August. The Group is hoping to expand these activities substantially by the end of the year. The direct customer business Marketing Services had to absorb a loss of -22.2% in the first half of the year, falling to CHF 19.1 million. This decline in revenue is due primarily to the agency business in Switzerland. Goldbach Interactive is now under new management. As immediate measures, the sales structures have been strengthened, a strategic partnership has been entered into with the creative agency Matter Gretener Lesch, and the cost basis has been reduced substantially. The Group is confident of further development in this area. Gross profit in the first half of 2015 stood at CHF 43.5 million, with a gross margin of 19.2%. The gross margin in the Ad Sales segment is stable. The slight decrease of one percentage point in the overall gross margin compared to the previous year is due to the revenue mix. Despite costs of CHF 2.1 million associated with market expansion in Germany, EBITDA increased by 5.9% to CHF 11.9 million. The resulting EBITDA margin of 5.2% at Group level remained stable. With an EBITDA contribution of CHF 17.6 million, the Ad Sales Switzerland segment continues to be the Goldbach Group’s main source of earnings. Due to economies of scale and strict cost control, the EBITDA margin in the Ad Sales Switzerland segment increased from 8.0% to 8.9%. In the Ad Sales Other segment, the streamlining of business activities is starting to bear fruit. After a loss of CHF -0.6 million in the same period last year, the segment broke even in the first half of 2015. The Marketing Services segment responded immediately to the loss recorded in the first half of the year. However, the measures introduced were not quite enough to break even at EBITDA level, where a loss of CHF -0.6 million was recorded. The Group’s operating profit (EBIT) increased by CHF 0.9 million to CHF 10.7 million, representing an increase of 9.2%. Net result, equity ratio, cash flow Changes to the shareholder structure and Board of Directors Outlook Note to analysts, investors and media representatives The presentation and Goldbach Group AG’s 2015 half-year report can be downloaded from our website:
Corporate Communication: Goldbach Group Company Profile End of ad hoc announcement +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=DMGOAISUJA Document title: Goldbach Group AG / Half Year Result 2015 / Key figures 2015-08-21 News transmitted by EQS Schweiz AG. www.eqs.com – news archive: http://switzerland.eqs.com/de/News The issuer is responsible for the contents of the release. |
Language: | English | |
Company: | Goldbach Group AG | |
Seestrasse 39 | ||
8700 Küsnacht-Zürich | ||
Switzerland | ||
Phone: | +41 44 914 91 00 | |
Fax: | +41 44 914 93 60 | |
E-mail: | info@goldbachgroup.com | |
Internet: | www.goldbachgroup.com | |
ISIN: | CH0004870942 | |
Valor: | 487094 | |
Listed: | Foreign Exchange(s) SIX | |
End of News | EQS Group News-Service |
388455 2015-08-21 |