Goldbach Group AG

DGAP-Adhoc: Goldbach Group AG: Annual Result 2013 - Goldbach Group grows despite difficult market environment

Goldbach Group AG  / Key word(s): Final Results/Final Results

06.03.2014 07:00

Release of an ad hoc announcement pursuant to Art. 53 KR

Ad hoc press release

Annual Result 2013:
Goldbach Group grows despite difficult market environment

Net Sales CHF 459 million - 2.9% net sales increase - adjusted EBIT growth
6.2% -  loss of CHF 16.1 million after streamlining the portfolio  - stable
development expected -  Dividend of CHF 0.80 applied for

Küsnacht-Zurich, March 6th, 2014. The Goldbach Group, the leading
advertising logistics provider for the marketing of private electronic,
mobile and interactive media and online marketing in the DACH region
(Germany, Austria and Switzerland), Central Eastern Europe (Poland, Romania
and Russia) and the Adriatic region (Croatia, Slovenia and Serbia),
achieved a 2.9% increase in net sales to CHF 459 million in the 2013
financial year (previous year: CHF 445 million).  The goodwill
amortisations for streamlining the portfolio, which were announced in
December 2013, as well as other one-off effects, resulted in an EBIT of CHF
7.7 million (previous year: CHF 32.3 million) and a loss of CHF 16.1
million. In contrast, the EBIT adjusted for these one-off effects increased
by 6.2% to CHF 32.0 million (previous year, adjusted: CHF 30.2 million) and
the adjusted result increased by 32.6% to CHF 9.4 million (previous year,
adjusted: CHF 7.1 million). The DACH region (+4.2%) and the Adriatic region
(+64.5%) developed positively, while sales in Central Eastern Europe
declined by 28.7%. The Goldbach Group is expecting stable development in
the current 2014 financial year. It is proposed that the General Meeting
approves a dividend of CHF 0.80.

In the 2013 financial year, the Goldbach Group continued to gain market
share in declining advertising markets. With sales of CHF 459 million, the
company achieved growth of 2.9%. The TV business grew again (by 3.9%) and
compensated for the slump in the radio product line (-15.7%). The growth
was driven in particular by video (+28.1%) and digital out of home (+57%).
Although still at a low level, the mobile segment experienced strong growth
of 102.5%.

For the first time since the reorganization in the middle of 2013, the
annual financial statements are being published according to regions, not
business lines.

Strong TV business in the DACH region - growing importance of video
In the DACH region (Germany, Austria, Switzerland), sales increased by 4.2%
to CHF 435.3 million (previous year: CHF 417.9 million). EBIT in the DACH
region fell by 11.1% to CHF 37.7 million, mainly due to declining radio
advertising and one-off effects in the search engine business. The Goldbach
Group generates 94% of its sales in the DACH region. In Switzerland, market
share and profitability in the TV business continued to increase, despite
ongoing uncertainties relating to coverage measurement. In contrast, radio
advertising decreased for the first time after two years of double-digit
growth. In the online segment, the video business developed positively and
grows significantly stronger than classic display advertising. The online
segment will be further strengthened by focusing on performance marketing,
including in Switzerland. The growth in Austria was driven in particular by
strong demand for performance consulting and the Audience business. In
Germany, the remodelling of the search engine business into a performance
agency, which was associated with goodwill amortisations, already had a
positive effect in the final quarter of 2013.

Positive development in the Adriatic region
After the acquisition of a majority stake in the leading digital agency
Renderspace in 2012 and as a result of booming tourism in Croatia, business
in the Adriatic region (Slovenia, Croatia and Serbia) developed positively
in a persistently difficult market environment, growing by 64.5% to CHF
10.2 million (previous year: CHF 6.2 million). EBIT in the Adriatic region
increased by 362% to CHF 0.9 million.

Growing importance of radio and TV marketing in Central Eastern Europe
Due to the slow development in Poland, Romania and Russia and the
withdrawal from the Czech Republic, sales in the Central Eastern Europe
region (CEE) declined by 28.7% to CHF 17.0 million (previous year: CHF 23.8
million). The unprofitable interactive business in Poland was restructured
in the 2013 financial year. In the Eastern Europe region, factors such as
the substantial amortisation of goodwill (CHF 18.1 million) and other
intangibles resulted in a loss of CHF -19.0 million (previous year: CHF
+1.2 million) at the EBIT level. The first successes were seen for the
expansion of the TV and radio marketing business in Romania, which was
initiated at the end of 2012. In Poland, where only online advertising has
been marketed to date, the Goldbach Group is planning to continuously build
up the services for selling digital TV. The Goldbach Group is expecting a
positive result in Central Eastern Europe in the current 2014 financial

Core business of digital TV
As part of its strategy to focus on the core competencies, in September
2013 the Goldbach Group decided to withdraw from the technology-oriented
development of the Wilmaa Box for digital TV reception and surrender its
majority stake in Wilmaa Digital World AG. The value of the investments was
adjusted accordingly and had an impact of CHF 4.7 million on the net
result. The sale of digital TV advertising, however, is part of the
Goldbach Group's core business. The Goldbach Group will therefore retain a
majority stake in Wilmaa GmbH, the internet platform for digital TV.

Profit and equity ratio
One-off effects amounting to around CHF 25 million resulted in a loss of
CHF -16.1 million (previous year: CHF 9.2 million). Adjusted for the
one-off effects, operating profit increased by 32.6% to CHF 9.3 million
(previous year, adjusted: CHF 7.1 million). The equity ratio as at the end
of 2013 was 24.4% (previous year: 32.0%). Operative cash flow stood at CHF
+25.3 million, and cash and cash equivalents as at the end of the financial
year stood at CHF 85.7 million.

Outlook and dividend
The Goldbach Group sees 2014 as a year of transition. With consolidation of
sales at a high level, it is expecting a solid net profit similar to the
2012 financial year.

The Executive Board will propose that the General Meeting approves a
dividend of CHF 0.80, depending on the profit adjusted for one-off effects.

"With new additions to the Group management and the reorganization in
Central Eastern Europe, we wish to build upon our expertise acquired over
the years and position the Goldbach Group as a leading player for digital
sales in our core markets of DACH, Adriatic and Central Eastern Europe
(CEE)," says Michi Frank, CEO of Goldbach Group AG.

To analysts, investors and media representatives:
You will find the Goldbach Group 2013 Annual Report on our website, at:

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

Additional features: Picture: Subtitle: Goldbach Group Kennzahlen 2013 06.03.2014 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 --------------------------------------------------------------------------- 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: Internet: ISIN: CH0004870942 Valor: 487094 Listed: SIX End of Announcement EQS Group News-Service ---------------------------------------------------------------------------

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