Goldbach Group AG

EANS-Adhoc: Goldbach Media AG
6-month report

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6-month report

13.08.2009

Turnover and EBIT figures for the first half-year 2009: Goldbach Media grows in a recessive market environment

Over 20% growth in sales - 10.5% EBIT increase - gain in market share and 6.6% organic growth - sales portion of the online business at 38.5% and internationally 20.3% - double-digit sales and single-digit EBIT growth prognosed for 2009.

Küsnacht, 13 August 2009. The Goldbach Media Group, the leader in Switzerland in advertising marketing for private electronic, interactive and mobile media, with its companies IP Multimedia, AdLINK, OnEmotion and orange8 interactive, together with its international companies (in Germany, Austria, Croatia, Slovenia, Serbia, Poland, Czech Republic, Romania and Russia), in the first half-year of 2009 increased turnover by 20.2% to CHF 139.4 (prior year CHF 116 million), the EBIT by 10.5% to CHF 6.1 million (prior year CHF 5.5 million) and the profit from ongoing business activities by 44.6% to approximately CHF 8 million (prior year CHF 5.5 million). The equity capital ratio increased to 44.6% (prior year 40.8%). The portion of sales generated through the online business meanwhile increased to 38.5%. The Group recorded 6.6% in organic growth. Despite continued difficult conditions in the advertising marketing and increasing negative currency exchange factors, through the Eastern European business Goldbach Media anticipates double-digit growth rates for 2009 and single-digit growth in EBIT.

Gain in market share in the offline division With the marketing of private TV, teletext, radio and AdScreen in the offline division, Goldbach was able to further grow its market share in the first half of 2009 and in an overall declining advertising market (Switzerland: gross minus 8%, Source Mediafocus) generated turnover that was 1.4% higher than the prior year period, amounting to CHF 85.9 million (prior year CHF 84.7 million). Primarily contributing to this success were advertising sales for private radio in Switzerland and the marketing of private television in Switzerland and Austria. Altogether, the sales of radio advertising increased by 10.8% while sales of television advertising grew by 2.6%. In contrast, the marketing of electronic advertising at attractive points of sale (AdScreen) declined. The EBIT generated in the offline segment improved over the prior year period by 8.9% to CHF 6.0 million (prior year CHF 5.5 million).

Performance marketing as driver of growth in the online division In Goldbach Media's online division, which in addition to Internet advertising and advertising on mobile phones and interactive games includes the conception, creation, planning and efficient management of performance marketing, the advertising logistics expert recorded a 69.9% increase in turnover amounting to CHF 53.8 million (prior year CHF 31.7 million) and an EBIT of CHF 1.4 million (prior year CHF 2.5 million). The organic growth of turnover in the online division was over 20%. The markets in Switzerland, Austria and Germany developed in a particularly positive manner. In Switzerland, with the expansion of its performance marketing offer and display business, among other things, Goldbach Media was able to further bolster its market position and in Austria the ongoing groundwork is paying off. Turnover in Germany will more than double through the gaining of new customers in an overall declining online market. Business developed variably in the Eastern European markets. Goldbach generated significantly more turnover in Poland, despite the challenging environment. However, business in Czech Republic stagnated and turnover decreased in Romania, which is locked in the grips of a deep recession. Both Goldbach companies in Russia developed and grew slightly according to plan. The companies in the Adriatic Region also felt the difficult economic conditions in the first half of 2009, particularly in Croatia. However, Goldbach was overall able to boost both its offer and market presence with its most important Southeastern and Eastern European companies in the first half of 2009. In this way, Goldbach Media as an advertising logistics expert and established online specialist intends to use the current economic conditions to create the ideal starting position to meet the anticipated economic recovery. The EBIT in the online division decreased by 43.5% to CHF 1.4 million in comparison to the prior year (prior year CHF 2.5 million) as a result of higher market development costs in the recessionary economic environment and what tended to be lower margins. In the first half-year 2009, the online segment contributed 38.5% toward the Group's total turnover (prior year 27%).

Participation in Internet TV - reassessment in the Romanian print business With its participation in the Swiss Internet TV company Wilmaa, Goldbach Media further strengthened its technological competence in the powerfully growing field of interactive and mobile marketing. Through a management buyout Goldbach Media was able to part from four loss-making print media companies in Romania. Goldbach Media had acquired them within the scope of the ARBOmedia Group acquisition along with three other print products and the Eastern European online business. With this acquisition, Goldbach Media announced that they would depart from the print business when the opportunity presented itself in order to focus on the marketing of electronic media. Due to the poor economic conditions in Romania and reassessment of the print division to be sold (discontinued operations: publishing company and the marketing of print market) a loss of CHF 4.3 million was recorded in the half-year results.

Goldbach Media's operational cash flow increased by 47.6% to CHF 6.3 million (prior year CHF 4.3 million) in the first half of 2009. The profit from ongoing business activities increased by 44.6% to CHF 8.0 million (prior year CHF 5.5 million). The extraordinary loss through the reassessment of the business portfolio led to a 33.4% decrease in profit for the period before minority participations of CHF 3.7 million (prior year CHF 5.5 million). The equity capital ratio increased to 44.6% (prior year 40.8%).

Outlook for 2009: Double-digit turnover growth and single-digit growth in EBIT The forecasts communicated by Goldbach in March 2009 will be largely confirmed by developments in the first half-year of 2009; however, the higher market development costs in the online division are weighing on EBIT growth. Single-digit growth is anticipated in the offline division for 2009, while in the online division the growth dynamic shall continue with two-digit turnover growth rates, though at a slower pace due to the poor economic conditions in several Southeastern and Eastern European markets. Negative currency exchange factors from these countries shall particularly leave their mark in the EBIT. Despite these negative influences, Goldbach Media as a whole shall achieve double-digit turnover growth and single-digit growth in EBIT for the business year 2009 in a market characterized by general economic conditions that shall remain the same.

"As a marketer of digital, interactive and mobile media, Goldbach Media has outstandingly advanced, gained market share and prepared for the economic recovery not just in Switzerland, Austria and Germany but also in the most important Southeastern and Eastern European markets. As early-cycle advertising logistics specialists, we seek to over-proportionally participate in the recovery of our Eastern European target markets,? states Klaus Kappeler, CEO of Goldbach Media. "As a specialized and leading advertising marketer for digital media, Goldbach Media shall provide targeted support for the marketing performance of its customers in the anticipated economic recovery with new and partially self-developed software to boost the efficiency of performance marketing.

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ots Originaltext: Goldbach Media AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Paul Riesen
CMO Head of Marketing & Communications
Tel.      +41 44 914 91 63
Mobile: +41 79 688 24 74
Fax:      +41 44 914 93 60
paul.riesen@goldbachmedia.ch

Branche: Media
ISIN:      CH0004870942
WKN:        487094
Index:    SPI, SPIEX
Börsen:  SIX Swiss Exchange / official dealing



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