DGAP-Adhoc: Goldbach Group AG: Half year result 2013 - Goldbach Group is growing in all Business Lines
21.08.2013 – 07:02
Goldbach Group AG / Key word(s): Half Year Results 21.08.2013 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR --------------------------------------------------------------------------- Half Year Result 2013: Goldbach Group is growing in all Business Lines Turnover CHF 221 million - 5.6% turnover increase - adjusted EBIT growth 18.6% - Profit CHF 2.6 million - TV is growing - Online: 12% growth - further growth expected Küsnacht-Zürich, August 21st, 2013. In the first half of 2013, the Goldbach Group increased net sales by 5.6% year-on-year to CHF 221 million and achieved an EBIT of CHF 13.0 million (- 6.7 %). The EBIT adjusted for one-time items (digital TV investments, termination of software license agreement) increased by 18.6% to CHF 14.0 million. The adjusted EBIT margin increased to 6.3 % (previous year 5.6 %). The leading advertising logistics service provider for the marketing of private electronic, mobile and interactive media as well as online marketing in the DACH region (Germany, Austria and Switzerland), in Eastern Europe and the Adriatic region continues to grow in all three Business Lines despite the difficult environment. For the current fiscal year, the Goldbach Group expects further single-digit sales growth and an increase in profitability. Goldbach Media: TV is growing, radio business is shrinking Sales in the Business Line Media, where the Goldbach Group pools the marketing of private TV, radio and digital out of home advertising primarily in Switzerland, as well as Austria and Romania, recorded a renewed growth of 3.2% to CHF 170.9 million (previous year CHF 165.6 million) in the first half of the year. The lack of publication of TV data in Switzerland had no adverse effect on sales. Rather, Goldbach Media was able to expand the market share of television advertising and considerably increased its sales by 5.4% in the first half of the year. For the first time, after a long period of growth, radio business declined by -10.4%, due in particular to the cyclical lower advertising budgets of large customers. This trend is likely to continue in the second half of the year, since the demand for radio advertising was exceptionally high in the previous year. To generate new customers and take advantage of the growth potential of radio markets, the Board of Directors of Goldbach Media decided to establish an independent radio marketing company as of 1 July 2013. The swiss radioworld AG which was spun off from the Radio Unit of Goldbach Media has its headquarters in Zurich Wollishofen. The Business Line Media contributed in the first half of 2013 78% (previous year 80%) to the total revenue of Goldbach Group. EBIT increased to 1.9% and amounts to CHF 17.0 million (previous year CHF 16.7 million). The Media segment contributed 93% to the adjusted Group EBIT (previous year 96%). Goldbach Audience: further profitable growth with online advertising The Business Line Audience, which bundles Goldbach's online advertising offers, returned to a profitable growth of +2.4% to CHF 28.3 million (previous year CHF 27.7 million) in the first half of 2013. All product lines contributed to the online 12% growth of the Goldbach Group: the Display segment including Performance Marketing increased by 6%, while the Video product line grew by 36%. The Goldbach Video Network launched at the beginning of 2012, which combines the widest-reach premium advertising platforms across all screens into a simple offer and is continuously being expanded with new platforms, devices and technologies, is proving to be a strong growth driver. The adjusted EBIT of Goldbach Audience - active in Switzerland, Austria, the Adriatic region and Eastern Europe - amounts to CHF 1.1 million and has thus doubled over the previous year's figure adjusted for one-time items (CHF 0.5 million). The growth in the Adriatic region and stronger operating profits in Eastern Europe have contributed to this improvement. In the first half of 2013, the Business Line Audience contributed 12% (previous year 11%) of total revenue and 6% (previous year 3%) of the adjusted EBIT of the Group. Goldbach Interactive: strong organic growth, successful acquisition The Business Line Interactive with Mobile, which provides conceptual, design and technological offerings for interactive communication and marketing solutions for the internet and all mobile devices, has steadily recovered in recent months from mandate changes and high investments, and recorded growth again in the first half of 2013 despite increased competition. The Business Line, which operates in German-speaking countries, Poland and Russia, generated sales of CHF 23.1 million (previous year CHF 18.5 million) in the first half of 2013, corresponding to an increase of 25.2%. About 60 % of the gains were achieved through organic growth in the DACH region, while around 40% was generated by the acquisition and successful integration of the leading Slovenian digital agency Renderspace. The expansion of the newly integrated area Performance Marketing is being energetically pursued at an international level, with a main focus on Germany and Poland. However, restructuring measures in Poland have had a negative impact on results. The Business Line Interactive contributed 10% (previous year 9%) to the total revenue of Goldbach Group, and 1% of the Group EBIT (previous year 1%). The EBIT for Business Line Interactive is with CHF 0.2 million at the same level as in the previous year. Income and equity ratio Net profit amounts to CHF 2.6 million (-25%, previous year CHF 3.5 million). Adjusted net profit increased by 77% to CHF 3.1 million (previous year CHF 1.8 million). As of June 2013, the equity ratio was 32% (as of end of June 2012: 31.5%). The operating cash flow generated in the first half of the year amounts to CHF -10.2 million, due to a strong reduction in current liabilities. Reorganization by region The Board of Directors has decided to realign the structure of the Goldbach Group by regions, with effect from 1 July 2013. With this reorganization, the Group which is active in the DACH region, Eastern Europe (Poland, Czech Republic, Romania, Russia) as well as the Adriatic region (Slovenia, Croatia, Serbia), aims to strengthen the individual regions, and facilitate further expansion as part of the long-term corporate strategy. Outlook For the full year 2013, the Goldbach Group continues to expect single-digit revenue growth in line with previous forecasts, also in the TV business. 'Also in the second half of the year, we expect higher sales, although TV ratings published since August report lower overall TV usage due to the survey method' says Klaus Kappeler, CEO Goldbach Group. 'Despite the challenging situation created by the new TV panel, we expect further sales growth in the TV area because of the ongoing shifting of advertising budgets to the moving image/video segments'. To analysts, investors and media representatives: You will find the Goldbach Group 2013 Interim Report on our website, at: http://www.goldbachgroup.com/investor-relations-en/annual-reports/half-yea r-report-2013 Contact: Goldbach Group AG Germaine Müller, Investor Relations Manager Corinne Laverrière, Public Relations Manager Seestrasse 39 8700 Küsnacht-Zurich Phone +41 (44) 914 91 00 Fax +41 (44) 914 93 60 www.goldbachgroup.com +++++ Additional features: Document: http://n.equitystory.com/c/fncls.ssp?u=KJQLSIBOXE Document title: Key Figures Goldbach Group Half Year 2013 21.08.2013 News transmitted by EQS Schweiz AG. The issuer is responsible for the contents of the release. EquityStory publishes regulatory releases, media releases on the capital market and press releases. The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. The Swiss news archive can be found at www.equitystory.ch/news --------------------------------------------------------------------------- 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: SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------