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EANS-Adhoc: Goldbach Group AG
Annual Result 2011; high-margin growth
-------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- 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 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