NZZ Media Group generates lower revenues and profits in the first half of the year
The NZZ Media Group generated less revenue and also less profit in the first half of 2018 than a year ago.
Revenues from the print advertising market, for example, continued to decline, and the user market, which includes subscription revenues and individual sales, also showed a slight downward trend, the Group announced on Wednesday.
In the months January to June, the NZZ Group generated total revenues of CHF 203.0 million. This is 4.1 percent less than in the same period of the previous year. In addition to the further structural decline in the print advertising market, the bankruptcy of the advertising marketer Publicitas also had a negative impact on the development of revenues, according to the statement. Due to the declining number of paying customers in the regional media, revenues in the user market fell slightly by one percent.
By contrast, revenues from digital advertising space developed positively, increasing by 7 percent.
Less profit
As not only revenues but also operating expenses declined by 4 percent in the period under review, the damage to the result is limited. Operating profit (EBIT) decreased by 1.4 million Swiss francs to 12.6 million Swiss francs, with the margin falling to 6.3 percent. Below the line, a profit of 11.3 million remained after 12.8 million in the previous year.
In the second half of the year, the NZZ Group expects growth in the NZZ Media division and in Business Media. To achieve this, however, investments in existing and new offerings are essential, it says. In addition, the company will continue to focus on cost control and measures to increase operational efficiency. (SDA/hae)
