NZZ Group achieves stable operating result in the first half-year
NZZ Media Group held its ground in a difficult media market in the first half of 2019. On a like-for-like basis, the Group achieved a stable operating result in its core business. The Group made gains in the user market.
The spin-off of the regional media to CH Media shaped the half-year results of the NZZ Media Group. Total revenues still reached 110.3 million Swiss francs, compared to 203 million Swiss francs in the same period last year, NZZ announced on Tuesday.
Sales, adjusted for the effects of the change in the scope of consolidation and discontinued operations, increased by 2 percent. Revenue in the user market increased by the same percentage, driven by a 5 percent increase in paying customers since June 2018.
Total expenses decreased to 105 million Swiss francs compared with 190.4 million Swiss francs in the prior-year period. Lower direct costs and savings in headcount were offset by additional expenditures for strategic projects.
The pro-rata result at the CH Media joint venture amounted to CHF 2.9 million in the first half of the year. Earnings before interest and taxes (EBIT) fell to CHF 8.2 (previously 12.6) million and the Group result to CHF 9.4 (11.3) million.
Both the EBIT margin (7.4 percent compared to 6.2 percent in the prior-year period) and the return on sales (8.5 percent compared to 5.6 percent previously) improved. The effects of the change in consolidation also left their mark here.
For the second half of 2019, the NZZ Media Group aims to grow further in the user market. The focus remains on strategic initiatives and the transformation towards digital and mobile-first offerings.
The NZZ Group is continuing to apply the cost brakes. It will also consistently implement measures to increase efficiency. The Group expects the media environment to remain challenging in the coming months. (SDA)
|
In CHF million |
Jan-Jun 19 |
Jan-Jun 18 |
Dev. in % |
|
Total operating income |
110,3 |
203,0 |
-45.7% |
|
Total operating expenses |
105,0 |
190,4 |
-44.9% |
|
Share of profit of joint venture |
2,9 |
0 |
– |
|
Operating result (Ebit) |
8,2 |
12,6 |
-35.2% |
|
Ebit–Margin |
7,4% |
6,2% |
1,2% |
|
Group result |
9,4 |
11,3 |
-17% |
|
Return on sales |
8,5% |
5,6% |
2,9% |
