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EANS-Adhoc: Goldbach Group AG
Powerful growth for the Goldbach Group
-------------------------------------------------------------------------------- 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 12.08.2011 Ad hoc press release Results for the first half of 2011: Powerful growth for the Goldbach Group Increase in turnover of 38% - 104% EBIT growth - boom in the TV and radio business - currency effects weigh on online marketing - dynamic growth in the interactive business - portfolio expansion to Eastern Europe Kusnacht, August 12th, 2011. Goldbach Group AG, the marketing leader in the German-speaking region and in Eastern Europe for private electronic, mobile and interactive media as well as online marketing, increased turnover by 37.8% to CHF 210 million (prior year: CHF 152 million) in the first six months of 2011. After adjustment for adverse foreign currency effects, the growth in turnover amounted to 40.4%. EBIT grew by 104% to CHF 14.5 million (prior year: CHF 7.1 million) and the net profit generated in the core business increased by 27% to CHF 3.8 million. The disposal of the print division in Romania, which did not belong to the core business, impacted the result by CHF -0.7 million. Therefore, the net profit reported according to IFRS was CHF 3.1 million (+1% in comparison to the prior year). The Goldbach Group anticipates double-digit growth in turnover and EBIT for the full year 2011, despite slowing growth momentum and foreign exchange uncertainties, if the economic slowdown does not strengthen. The Goldbach Group has reported its results in three business lines since 1 January 2011. The Media business line is comprised of the former Offline segment, while the Audience and Interactive business lines were previously combined in the Online segment. The Media business line is growing solidly, also with its long-standing portfolio Turnover 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, grew powerfully in the first half of 2011 by 65.3% (currency adjusted: 65.6%) with sales amounting to CHF 154.1 million (prior year: CHF 93.2 million). The growth in turnover was largely generated in the TV business (+75.4%; prior year: +11.3%) and from sales of radio advertising (+24.2%; prior year: -2.1%). The Media business line significantly increased its mandates in 2010, which will impact sales and revenue this year. A substantial share of the turnover growth resulted from the long-standing Goldbach portfolio. The TV business profited from the ongoing shifting of advertising spending to electronic media and is booming in Switzerland. The radio advertising business has recovered and may also grow in the second half of the year. The Media business line is becoming active in Eastern Europe for the first time with the founding and marketing of an association of local, private TV stations in Romania. The Media business line contributed 74% to the total turnover of the Goldbach Group in the first half of 2011 (prior year: 62%). The EBIT for the Media business line increased by 128% in the first half of the year and amounted to CHF 16.6 million (prior year: CHF 7.3 million). Accordingly, the Media business line contributed 85% of the Group EBIT (prior year: 77%). The EBIT margin increased significantly to 10.8% (prior year: 7.8%). Consistent margin strengthening in the Audience business line In the Audience business line, which enables the targeted placement of online advertising and novel offers for performance marketing, turnover decreased in the first half of 2011 by 10.2% (currency adjusted -3.7%). Total turnover was CHF 38.4 million (prior year: CHF 42.7 million). This was primarily a result of a declining market in Switzerland, in which the Audience business line consequently opted out of low-margin business and is promoting higher-margin network marketing. Contact to the important customer group media agencies was further deepened with the introduction of TAO, an online reporting system for the current assessment of marketing success in digital media. Wilmaa, the Swiss Internet television, in which Goldbach holds a majority stake, is also part of the Audience business line, and has developed rapidly and profitably in the first six months of 2011. EBIT growth in the Audience business line amounted to 28%; EBIT was CHF 1.6 million (prior year: CHF 1.3 million). The EBIT margin increased by 4.2% (prior year: 2.9%). The Audience business in Eastern Europe continues to be marked by great volatility, while the South Adriatic markets have recovered slightly. In total, the Audience business line contributed 16% (prior year: 28%) to the overall turnover and 8% (prior year: 13%) to the Group's EBIT. High demand for online marketing accelerates growth of the Interactive business line Turnover in the Interactive business line, in which Goldbach's conceptual, design and technological offers pertaining to interactive communication and marketing solutions for the Internet and mobile computer are bundled, increased by 26% and when currency-adjusted, by 32.3% to CHF 20.1 million (prior year: CHF 16 million). With the high-margin offers of the Interactive business line, Goldbach Group seeks to extend the value creation chain while also deepening direct contact with advertising clients. Several weeks ago, with the founding of Goldbach Interactive Austria, the Interactive business line expanded its offer from Switzerland and Germany to the entire German-speaking region. The Goldbach Mobile competence centre, which is integrated in the Interactive business line, grew powerfully in the first half of 2011 with its services and application developments for iPhone, iPad and other smartphones. The Social Media competence centre develops strategies and campaigns for platforms such as Facebook and Twitter, creates content and manages the dialogue with communities. Social Media also recorded strong growth in the first half of 2011. The Interactive business line contributed 10% (prior year: 10%) to the overall turnover of the Goldbach Group; 7% to the Group EBIT (prior year: 10%). The EBIT margin increased by 7.1% (prior year: 5.5%). Thus, in the first half of 2011, 74% (prior year: 62%) of the overall turnover was generated by the Media business line, 16% from the Audience business line (prior year: 28%) and 10% from the Interactive business line (prior year: 10%). Due to the strong growth of the Media business line, particularly in Switzerland and the foreign currency effects, the share of international business decreased to 14% in the first six months (prior year: 21%). Sale of the print business and completion of the squeeze-out at ARBOmedia At the end of June 2011, the Goldbach Group disposed a further company of the print division, which was part of the ARBOmedia acquisition and no longer belonged to the core business. Sales negotiations are far advanced for the remaining newspaper publisher in Romania. The deconsolidation of the two companies shall take place in the second half of 2011. In addition, the General Meeting of ARBOmedia approved the squeeze-out in June, with few votes cast against it. With the listing in the commercial register at the Munich District Court on 1 August 2011, Goldbach Ost GmbH took over all the shares belonging to the minority shareholders in ARBOmedia and thereby completed the squeeze-out procedure. Goldbach Group also intends to delist ARBOmedia in the third quarter of this year. Profit and equity ratio The net profit reported in the core business amounted to CHF 3.8 million (prior year: CHF 3.0 million) and thereby increased by 27% over the prior year period. The net profit reported according to IFRS, will be impacted by CHF 0.7 million due to the disposal of the print business, and thus amounts to CHF 3.1 million and is slightly above the prior year's figure. As of the end of June 2011, the equity ratio amounted to 28.9% (as of 31 December 2010: 28.8%). CHF 7.3 million in operating cash flow was generated in the first half of 2011 (prior year: CHF -3.2 million). Outlook On the basis of the strong growth in the first half of the year, the Goldbach Group confirms the prognosis made at the beginning of the year for 2011, if the economy does not significantly cool down. Despite a slowing of growth momentum and greater foreign currency uncertainties, the Goldbach Group anticipates an annual result showing double-digit growth in turnover and increase in EBIT. According to Klaus Kappeler, CEO of the Goldbach Group, "with its innovative and comprehensive service and product portfolio for electronic media in Central and Eastern Europe, the Goldbach Group is uniquely prepared to anticipate future market developments and to cushion market volatility. Mobile and interactive communication is steadily growing, while TV and video are becoming interactive. The Goldbach Group has the capability to link the advertising industry with the rapidly growing number of online consumers like no other company." To analysts, investors and media representatives: You can find the half year result report 2011 of Goldbach Group on the following website: http://www.goldbachgroup.com/investor-relations-en/half-year-report-2011 Further Information: Goldbach Group Germaine Müller Seestrasse 39 8700 Kusnacht Switzerland Phone +41 (44) 914 91 00 Mobile +41 (79) 688 24 74 Fax +41 (44) 914 93 60 www.goldbachgroup.com Goldbach Group company profile Goldbach Group is the leading network for electronic communications solutions as well as thelogistics centre for advertising in private electronic, mobile and interactive media such asTV, Internet TV, Radio, Out-of-Home, Online, In Game, Social Media, Search Engine as well as Mobile Advertising. The Goldbach Group is headquartered in Switzerland (Kusnacht-Zurich) and is active inAustria, Germany as well as in Southeastern, Eastern Europe and Russia. Goldbach Group has been listed on the main market oft he SIX Swiss Exchange since June 15th, 2007 (valor no. 487094, ISIN CH0004870942, sympbol: GBMN). Further Information: www.goldbachgroup.com or www.goldbach.com Further inquiry note: Paul Riesen, Germaine Müller 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