Goldbach Group grows thanks to TV business

The Group achieved sales of 234 million Swiss francs in the first six months, the company announced on Wednesday. This is an increase of 3.2 percent compared to the same period last year. Operating profit (EBIT) even rose by over 10 percent to 11.8 million francs. Net profit increased from 2.4 million francs in the previous year to 3.7 million francs, although this jump in profit was also the result of a special effect. For example, the sale of the business activities in Poland improved the result by 1.9 million Swiss francs. In purely business terms, the marketing of TV advertising in particular contributed to the better performance. Revenues in this, by far the largest business area, rose by 9.4 percent year on year to CHF 178.4 million. By contrast, revenues from advertising on the radio or on the Internet, with the exception of Internet videos, were down. The significant increase in TV advertising is predominantly the result of an expansion of business activities. Goldbach was able to acquire new customers in this business. Two-thirds of the growth was attributable to new stations, said CFO Lukas Leuenberger at a conference call on Wednesday.

Not benefited from EM

The advertising market, on the other hand, did not help. According to the company's own estimates, this market declined in the first half of the year. In addition, Goldbach, as an advertising marketer for private TV stations, is not benefiting from major TV events such as the European Football Championships and the Olympic Games, because these are mainly broadcast on public stations, said Goldbach CEO Michi Frank. Despite declining revenues - a pleasing development can also be seen in radio advertising. The decline in revenues was merely the result of exceptionally high revenues in the previous year. Outside of TV and radio advertising and online videos, however, the Goldbach Group also suffered losses in the first half of the year. The Marketing Services division, for example, once again posted a loss (-1.4 million Swiss francs EBITDA). This was mainly due to the business with the production of websites and apps. Goldbach therefore sold this area in the first half of the year.

Losses in Germany and in the service business

According to Frank, however, this does not mark the end of the restructuring of the Marketing Services business unit. The organizational structure is also to be adapted and cross-border competence centers created. In the future, this division will focus on marketing services for customers, as previously announced. Goldbach is also still in the red with its advertising marketing operations in Germany. This division posted a loss of 1.3 million Swiss francs (EBITDA) on sales of 3.4 million Swiss francs in the first six months. According to Leuenberger, the company's goal in this business segment, which is still being developed, is to be in the black next year. This would require sales of around 10 million francs. Goldbach CEO Frank was optimistic for the year as a whole. In terms of revenues, Goldbach expects growth in the single-digit percentage range for the year as a whole. Net profit is expected to be 8 to 10 million francs. (SDA)