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EANS-Adhoc: Goldbach Group AG
Increase in profits, turnover stable
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 6-month report 21.08.2012 Ad hoc press release Half year result 2012: Goldbach Group: Increase in profits, turnover stable Turnover CHF 209 million - EBIT down by 5% - Profits up by 11% - Sustained growth in TV and radio - Setbacks in online business - Focus of online strategy Kusnacht-Zurich, August 21st, 2012. Goldbach Group's net revenue in the first half of 2012 was down 0.4% on the corresponding period in the previous year (+0.6% after currency adjustment) at CHF 208.9m (previous year CHF 209.8m), while the EBIT of 13.8m represented a 4.8% drop in comparison to the previous year (CHF 14.5m). The advertising logistics specialist, which pursues the marketing of private electronic, mobile and interactive media and online marketing in the German-speaking countries, the Adriatic region and eastern Europe, thus attained an EBIT margin of 6.6% (previous year 6.9%). Cost-cutting measures which took effect in the first half of the year should have an even more pronounced impact on the income statement in the second half. Goldbach expects an increase in profit for the current 2012 financial year, despite the stagnant turnover situation. In view of the unsatisfactory course of business for Goldbach Audience and the emerging consolidation at Goldbach Interactive, Goldbach has reviewed its online strategy and decided to focus on lines of business harbouring high development potential. Media business line grows with TV and radio business Turnover in the Media business line, which pools Goldbach Group's marketing activities in the area of private TV, radio and digital out-of-home advertising, first and foremost in Switzerland, as well as in Austria and Romania, rose markedly once again in the first half of 2012, increasing by 7.5% (7.6% after currency adjustment) to CHF 165.6m (previous year CHF 154.1m). Growth in radio business was particularly outstanding, at 17%. TV business rose by 6%. The increase in turnover derives primarily from Goldbach's existing customer portfolio. Advertising in classic media such as TV and radio remains in demand in a generally contracting advertising market, once again affirming the trend witnessed in recent years. Since 2011, the Media business line has been marketing a network of local private TV stations in Romania and eastern Europe. Romanian TV business is developing very positively, showing a growth rate of over 30%. Goldbach Media's market share in Switzerland rose once again. The Media business line contributed 79% to Goldbach Group's total turnover in the first half of 2012 (previous year 74%). EBIT for the Media business line rose slightly, by 0.1%. The Media segment accounted for 86% of the Group EBIT (previous year 85%). Business sluggish for Audience business line - increase in turnover with online moving images The Audience business line spans Goldbach's product range in the areas of online advertising and performance marketing. This business line suffered a substantial drop in turnover in the first half of 2012, falling by 27.8% (-24.2% in local currency) to CHF 27.7m (previous year 38.4m). EBIT rose by 63.5% to CHF 2.6m (previous year CHF 1.6m) as a result of cost cutting to the tune of 20% and a one-off effect. As in previous years, low-margin bulk business was avoided in the Audience business line. Substituting this with high-margin business proved difficult in the generally declining display markets in Switzerland and eastern Europe, however. The business line additionally lost a number of clients mainly in Poland (direct marketing facebook). In contrast, the Goldbach Video Network which was launched in February 2012 to sell moving image advertising is proving a sales driver. Against the background of the rapid spread of mobile devices such as smartphones and tablets, TV is being used ever more frequently and for longer periods online and on the move. The Audience business line accounted for 12% (previous year 16%) of overall turnover in the first half of 2012 and 13% (previous year 8%) of the Group's EBIT - whereby the latter result was attributable primarily to a one-off effect. In response to the clearly unsatisfactory course of business for the Audience business line in the second half of 2012, Goldbach Group has reviewed its online strategy and decided to focus its efforts on developing moving image marketing. Interactive business line: Consulting services for interactive marketing in demand - customers lost and substantial investments Goldbach Group's Interactive business line has been offering concept development, design and technological services for interactive and mobile communication and marketing solutions since 2008. This area of business is now established throughout the German-speaking countries and in Poland and Russia as well. Turnover for the Interactive business line fell by 8.1% (5.5% in local currency) in the first half of this year, to CHF 18.5m (previous year CHF 20.1m). EBIT dropped by 86.7% over this period, to CHF 0.2m. This decline in turnover is attributable primarily to the change of the number of key consulting mandates in Switzerland. Demand for consulting services in connection with online communication and in the area of mobile advertising and social media remains high. The Interactive business line contributed 9% (previous year 10%) to Goldbach Group's overall turnover and 1% to the Group EBIT (previous year 7%). Total turnover on the level of previous year In all, the Media business line accounted for 79% of total turnover in the first half of 2012 (previous year 74%), while the Audience business line contributed 12% (previous year 16%) and the Interactive business line made up 9% (previous year 10%). The share of Swiss business rose in the first six months to 88% (previous year 86%), while the share of international business stands at 12% (previous year 14%). Profit and equity ratio The net profit amounted to CHF 3.4 million (prior year: CHF 3.1 million) and increased by 11% over the prior year period. As of the end of June 2012, the equity ratio amounted to 31.5% (as of end of June 2011: 28.9%). The operative cash flow generated in the first half of the year amounts to CHF 3.1 million (previous year CHF 7.3 million). Outlook For 2012 as a whole, against a backdrop of continuing difficult conditions on the online market and sustained high demand in TV business, Goldbach Group expects turnover to be on a par with the previous year, while the profit for the year is expected to be higher as a result of the successfully implemented cost-cutting measures. "Goldbach Group has been investing in the development of online media and broadening its presence in the classic electronic media such as TV for some years now. TV and video are now becoming interactive, and moving image media as well as mobile and interactive communication are converging. Goldbach Group is at home in both worlds and in a virtually unrivalled position to benefit from the growing importance of the moving image in its capacity as an advertising logistics specialist." To analysts, investors and media representatives: You can find the half year result report 2012 of Goldbach Group on the following website: http://www.goldbachgroup.com/investor-relations-en/half-year-report-2012 Further inquiry note: Paul Riesen, Germaine Mueller Tel. +41 44 914 91 00 Mobile: +41 79 688 24 74 firstname.lastname@example.org email@example.com end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Goldbach Group AG Seestrasse 39 CH-8700 Küsnacht phone: +41 44 914 91 00 FAX: +41 44 914 93 60 mail: firstname.lastname@example.org WWW: www.goldbachgroup.ch sector: Media ISIN: CH0004870942 indexes: SPI, SPIEX stockmarkets: Main Standard: SIX Swiss Exchange language: English