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annual result/annual report
05.03.2013
Ad hoc press release
Annual result 2012:
Goldbach Group with striking profit growth
Sales CHF 445 million - Profit CHF 9.1 million (+51%) - EBIT CHF 32.1 million
(+6.9%) - Higher EBIT margin (7.2%) -Successful cost management - Moving image
advertising as sales driver - Dividend of CHF 0.80 applied for - Sustained
strengthening of profitability
Küsnacht, Switzerland, March 5th, 2013. During the financial year 2012 the
Goldbach Group achieved CHF 445 million in sales (previous year CHF 446
million), an EBIT of CHF 32.1 million (previous year CHF 30.0 million) and 51%
higher profits of CHF 9.1 million (previous year CHF 6.0 million). Despite an
overall recessive advertising sector and with subdued sales (-0.1%), the
Goldbach Group - market leader in advertising logistics for the marketing of
private electronic, mobile and interactive media and online marketing in the
German-speaking countries, the Adriatic region and Eastern Europe, and active
in these businesses in Russia - achieved a considerably improved EBIT margin of
7.2% (previous year 6.7%) and 6.9% improvement in EBIT (CHF 32.1 million). It
is proposed that the General Meeting approves a dividend of CHF 0.80 (previous
year CHF 0.71), which is an increase of 12.7%. Goldbach intends to further
strengthen profitability in the course of the financial year in progress.
Thanks to systematic cost management and a higher gross margin, EBIT growth of
+67% in the Business Line Audience was particularly pronounced; the costs of
international investment and expansion, and of conversion to
performance-oriented service in the Business Line Interactive, resulted in an
EBIT decline of 65%. On the other hand, the Business Line with the
strongest sales, the Business Line Media, achieved EBIT growth of 9%.
Goldbach Media with a high level of sustainable, profitable growth
With the marketing of private TV, radio and Digital out of Home advertising in
attractive points of sale, particularly in Switzerland but also in Austria and
Romania, in 2012 the Business Line Media remained on track for growth at a high
level with a 4.2% increase, with sales of CHF 351.9 million (previous year CHF
337.7 million).
Despite the general recession in advertising trends, TV (+2.5%) and radio
business (+12.6%) was encouraging on the whole, and the market position was
further strengthened. Goldbach Media managed to further add to its new
customers, providing broad support to its customer base. In Switzerland, new
special-interest TV stations were added to the portfolio for the year in
progress.
The local-TV network launched two years ago in Romania developed into a
national offering that currently comprises 37 stations. The 40% increase in
advertising volume in 2012 points to the success of the expansion in the
moving-image strategy into Eastern Europe begun in 2011. Continuing development
in the radio area was just as successful. With a range of 64 stations and sales
growth in excess of 100%, Goldbach ranks among the leading providers in this
sector.
In Austria, it was particularly the Digital out of home network that was
expanded during the year under report, thanks to the acquisition of new
clients; in Romania, the portfolio was rounded out at the beginning of this
year with electronic outdoor advertising space.
The EBIT margin of the Business Line Media increased by 0.4 percentage points,
to 10.5%; EBIT growth totals 9%. In 2012 Goldbach Media contributed 84%
(previous year 85 %) to Group EBIT.
High EBIT growth for Goldbach Audience despite decline in sales
Goldbach integrates its offerings for online advertising in its Business Line
Audience. Sales in Switzerland, Austria and the Adriatic and Eastern European
region were lower again, at CHF 62.1 million (previous year CHF 75.2 million)
or a decline of 17% (previous year -15%); still, the decline in sales slowed
considerably during the second semester, particularly in the display business.
The rigorous cost-management scheme that had already been introduced at the end
of 2011, along with a foregoing of weak-margin mandates, played a major role in
strengthening the Business Line Audience.
In addition, with the launch of the Goldbach Video Network in Switzerland
during the first quarter of 2012 and the implementation currently under way in
the other countries, a concerted effort was made to market moving-image
advertising. Video advertising already accounts for a 22% Group-wide share of
overall Audience sales, and the trend is an upward one. In addition, by
introducing the Goldbach Mobile Network during the second semester, Goldbach
made allowance for the rapid spread of smartphones and tablets and further
expanded its portfolio in mobile online media. Business here is expected to
grow in the years to come, in keeping with worldwide market forecast, and
further strengthen the display segment.
Goldbach Audience reported 67% EBIT growth, and the EBIT margin increased to
9.6% (previous year 4.8%), due in part to a positive one-off effect (disposal
of licence agreement). Its share of total sales was 12% (previous year 15%);
the contribution to Group EBIT rose from 9% to 14%.
Goldbach Interactive: EBIT encumbered by expansion in offerings and
internationalisation Sales for the Business Line Interactive were CHF 38.0
million (previous year CHF 39.1 million) in 2012, declining primarily as a
result of changes in mandate in Switzerland and Germany (-3.0%).
Goldbach Interactive provided conceptual, design and technological offerings
on all aspects relating to interactive communication solutions and
marketing solutions for the Internet
and mobile devices such as smartphones and tablets. The Business Line comprises
competence centres devoted to Mobile, Social Media, Performance Campaigns,
Websites, Shops & Portals as well as Search. With these offerings, Goldbach
covers the entire value chain between advertisers and online advertising, not
just for classic digital advertising but for performance marketing as well.
Demand for consulting services in these areas is increasing. At the
international level, it is becoming apparent that companies are increasingly
awarding multi-channel brand-management mandates, and that the trend is towards
on- and offline services from a single source.
Goldbach Interactive is now active throughout the German-speaking region, and
in Poland and Russia as well. The Group further expanded its services in the
Adriatic with its takeover of a majority share of the leading digital agency
Renderspace in Slovenia.
The EBIT of Goldbach Interactive was 65% lower on the year, particularly due to
considerable investments in international expansion; the EBIT margin fell to
2.1% (previous year 5.9%). Its contribution to total EBIT was 2%.
Profit, equity ratio and dividend proposal
The Goldbach Group's profit according to IFRS rose by 51.0% in 2012 to CHF 9.1
million (previous year CHF 6.0 million). The equity ratio increased to 32.8%
(previous year 31.4%). Operative cash flow stands at CHF 33.2 million (previous
year CHF 29.0 million). It is proposed that the General Meeting approves a
dividend of CHF 0.80 (previous year 0.71), which is an increase of 12.7%.
Outlook
Following successful implementation of organisational restructuring measures in
Eastern Europe and the Adriatic, together with Group-wide cost reductions, the
Goldbach Group anticipates further strengthening in profitability during the
current 2013 financial year. In order to extend the Group's position in the
moving-image advertising area, market entry to further countries by the
Business Line Media is also under review during the current financial year.
'The transfer of advertising to the electronic media is not over yet,' Goldbach
Group CEO Klaus Kappeler observes. 'Our offerings as a provider of advertising
logistics for all private electronic, interactive and mobile media are entirely
in line with the international trend. The growing demand for advertising with
moving images and for performance-oriented marketing confirms this development.
With its network in the German-speaking, Eastern European and Adriatic region,
the Goldbach Group will be ready when the economy recovers and the markets have
catching-up to do.'
To analysts, investors and media representatives:
You will find the Goldbach Group 2012 Annual Report on our website, at:
http://www.goldbachgroup.com/investor-relations-en/annual-reports/annual-report-2012
Further inquiry note:
Germaine Mueller
Tel. +41 44 914 91 10
Mobile: +41 78 600 24 14
germaine.mueller@goldbachgroup.com
end of announcement euro adhoc
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issuer: Goldbach Group AG
Seestrasse 39
CH-8700 Küsnacht
phone: +41 44 914 91 00
FAX: +41 44 914 93 60
mail: info@goldbachgroup.ch
WWW: www.goldbachgroup.ch
sector: Media
ISIN: CH0004870942
indexes: SPI, SPIEX
stockmarkets: Main Standard: SIX Swiss Exchange
language: English