EANS-Adhoc: Goldbach Group AG Annual Result 2011; high-margin growth
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annual report
06.03.2012
Ad hoc press release
Group result 2011:
Goldbach Group: High-margin growth
CHF 446 million net turnover (+35%) - EBIT CHF 30 million (+29%) - CHF 6.0
million profit (+19%) - strong growth by Goldbach Media - higher margin for
Goldbach Audience - international expansion of Goldbach Interactive - divestment
of the print business - proposed dividend of CHF 0.71 - single digit turnover
and profit increase forecast
Kusnacht, March 6th, 2012. The Goldbach Group generated CHF 446 million (prior
year: CHF 329 million) in turnover in the 2011 business year, with EBIT of CHF
30 million (prior year: CHF 23.3 million) and a profit of CHF 6.0 million (prior
year: CHF 5.1 million). Goldbach Group, the leading advertising logistics expert
in the German-speaking region, Eastern Europe and Russia in the marketing of
private, electronic, mobile and interactive media, as well as in online
marketing, increased net revenue throughout the group by 35.4%, with a slightly
higher EBIT margin in its core business of 6.7% (prior year: 6.6%). This was
particularly pronounced in the Audience business line with 4.9% (prior year:
2.5%) The Annual General Meeting shall decide on a proposed dividend of CHF
0.71. For the current 2012 business year, Goldbach anticipates single-digit
growth in turnover and a significant increase in profit.
The reported definitive net turnover for 2011 was CHF 446 million (prior year:
CHF 329.4 million). This included CHF 337.7 million (+61.9%) in the Media
business line and CHF 75.1 million (-15.4%) in the Audience business line and
CHF 39.1 million (+4.1%) in the Interactive business line. There was a 35.4%
increase in turnover. EBIT according to IFRS increased by 28.8% to CHF 30
million (prior year: CHF 23.3 million). In the core business, excluding the
print division in Rumania, which was disposed of at the end of 2011, and other
one-time special effects, turnover increased by 36.3% and EBIT by 38.4%. The
Media business line contributed 76% (prior year: 64%) to the total turnover in
2011, the Audience business line contributed 15% (prior year: 25%) and the
Interactive business line 9% (prior year: 11%). The portion of total turnover
generated in the Swiss business was 87% (prior year: 79%).
Strong profitable growth in the Media business line
The sales success recorded in the first half of the year in the Media business
line, in which the Goldbach Group combines the marketing of private TV, radio,
teletext and electronic advertising at attractive points of sale (out-of-home),
primarily in Switzerland and Austria, was consolidated in the second half of the
year. Turnover increased by 61.9% to CHF 337.7 million (prior year: CHF 208.6
million). Turnover in the TV business increased by 70.7% (prior year: 10.8%).
The new mandates acquired in 2010 impacted turnover, while the existing
portfolio also grew significantly by over 20%. The TV business thus impressively
demonstrated its resistance to general economic trends and profited from the
ongoing shifting of advertising spending to electronic media. Moving image
advertising is also being used increasingly on online platforms. Radio
advertising sales also developed positively (+25.9%; prior year: -0.4%).
Planning and auditing tools were introduced for sustained customer retention and
important new customers were gained. With the marketing of a local TV network in
Romania, the Media business line first became active in Eastern Europe in 2011;
which means the combined offer of TV and online, a business model that has been
successful in Switzerland, was implemented in Eastern Europe for the first time.
The Media business line contributed 76% to the total turnover of the Goldbach
Group in 2011 (prior year: 64%). EBIT for the Media business line increased by
60% in 2011, to CHF 34 million (prior year: CHF 21.3 million). The segment
contributed 85% to the Group EBIT (prior year 80%). The EBIT margin remained
constant at 10.1%, despite the strong growth (prior year: 10.2%).
Margin doubling in the Audience business line
Combined in the Audience business line are the targeted placement of online
advertising and new types of offers for performance marketing in Switzerland,
Austria, Germany, the Adriatic region and Eastern Europe, including Russia.
Turnover decreased by 15.4% (currency-adjusted: -9.3%) to CHF 75.2 million
(prior year: CHF 88.8 million). EBIT amounted to CHF 3.7 million (prior year:
CHF 2.3 million). Excluding the special effects, this corresponds to an increase
in EBIT for the core business of 62%.
The consistent forgoing of low margin business is reflected in the improvement
of the EBIT margin to 4.9% (prior year: 2.5%). The Swiss Internet television
company, Wilmaa, in which Goldbach holds a majority stake and which is reported
in the Audience business line, continued to develop dynamically and profitably
in 2011. Goldbach continues to expand its range for multi-screen advertising
with the launching of the Goldbach Video Network, a comprehensive offer from a
single source for the use of moving images on any sort of screen (TV, computer,
smart phone, tablet). Marketing success in digital media can be measured in real
time with the TAO online reporting system introduced in 2011. The TAO system can
also be used for TV monitoring by midyear. The applications are being constantly
expanded and should also enable the online evaluation of videos and moving
images. In total, the Audience business line contributed 15% (prior year: 25%)
to the overall turnover and 9% (prior year: 8%) to the Group's EBIT.
Extension of the value creation chain with international expansion of the
Interactive business line
Goldbach's conceptual, design and technological expertise pertaining to
interactive communication and marketing solutions for the Internet and mobile
devices are combined in the Interactive business line. The Goldbach Mobile
competence centre, which is part of the Interactive business line, develops
applications for mobile computers and smart phones, such as the iPhone and iPad.
The Social Media competence centre offers strategic consultation to customers
and campaigns are elaborated for platforms including Facebook, Twitter and Xing,
while content is created for corporate communications with Internet communities.
The Goldbach Search competence centre facilitates better placement and greater
visibility for its customers in search engines and Internet platforms. These
offers enable Goldbach to cover the entire value creation chain between the
advertising client and online advertising and also deepen customer
relationships. Turnover increased in the Interactive business line by 4.1% to
CHF 39.1 million (prior year: CHF 37.6 million); by 9.4% when currency-adjusted.
The international expansion of the Interactive business line proceeded according
to plan in the reporting year. The business line's services are offered in
Switzerland, Austria, Germany and since recently now also in Poland. EBIT
decreased, primarily due to the expansion costs (-27.0%) and amounted to CHF 2.3
million (prior year: CHF 3.2 million). The EBIT margin was 5.9% (prior year:
8.5%). The portion of overall turnover generated by the Interactive business
line was 9% (prior year: 11%). The Interactive business lines contributed 6% to
Group EBIT (prior year: 12%).
Profit, special effects. Equity capital ratio and dividend proposal
The Goldbach Group's profit increased in 2011 by 18.7% to CHF 6 million (prior
year: CHF 5.1 million). Special effects totalling CHF 2.6 million, among which
CHF 1.6 million resulted from currency losses, were generated by the disposal of
the Romanian print division, which was no longer part of the core business. In
consideration of all special effects, the profit amounted to CHF 8.4 million.
The profit was again impacted by costs amounting of to CHF 1.3 million for the
completed integration of ARBOmedia (squeeze-out). The equity capital ratio
increased from 28.8% to 31.4%, while the operative cash flow amounted to CHF 29
million (prior year: 27.6 million). A dividend of CHF 0.71 per share will be
proposed at the General Meeting.
Outlook
In the current 2012 business year, Goldbach anticipates single-digit turnover
growth during the transition to sustained growth. Once the focus upon the core
business and the implementation of organizational measures are completed,
profitability and profits should increase again significantly.
"Due to the convergence of media and with the increasing mobility of consumers,
the electronic media are converging even more," stated Klaus Kappeler, Goldbach
Group CEO. "Our customers in Switzerland are already profiting from the ongoing
media convergence through the launching of our new tool for multi-screen
advertising. We intend to incrementally transfer our successful business concept
with its comprehensive range for advertising and marketing in electronic and
mobile media to Eastern European countries and to further expand our presence in
Eastern Europe's leading economies, such as Poland and Russia. The Eastern
European countries still have a long way to go to catch up in terms of
advertising and marketing, which could invigorate business in the medium term."
Further inquiry note:
Paul Riesen, Germaine Müller
Tel. +41 44 914 91 00
Mobile: +41 79 688 24 74
germaine.mueller@goldbachgroup.com
paul.riesen@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