The NZZ Group feels the upwind
Increase in earnings thanks to flourishing advertising business
Increase in earnings thanks to flourishing advertising businessThe NZZ can look back on a good business year in 1999: the media group's total operating income rose by 6.2 percent to CHF 479.2 million. The operating result reached a record level of 46.3 million Swiss francs. According to NZZ, the earnings power can be explained by revenue growth rather than efficiency gains. Only just at the federal government have the restructuring efforts brought a further improvement in the earnings situation. This means that the break-even point has now been approximately reached.
The reason for the Group's growth was the 9.1 percent increase in advertising business. All three titles - NZZ, St. Galler Tagblatt and Bund - would have benefited. One drop of bitterness: the circulation of the St. Galler Tagblatt shrank last year by more than 5000 copies or 4.5 percent to 110485 copies. However, the diver is not to be taken at full face value, says NZZ publishing director Tobias Trevisan. The reason for this is to be found in errors in the calculation of circulation in 1998, when the East Switzerland Newspaper Association was created. Despite the negative trend in circulation, the newspaper was doing well. NZZ publishing director Trevisan went on to explain: "Thanks to volume growth and price increases, it was even able to post a double-digit growth rate in the advertising market" (dse).
The reason for the Group's growth was the 9.1 percent increase in advertising business. All three titles - NZZ, St. Galler Tagblatt and Bund - would have benefited. One drop of bitterness: the circulation of the St. Galler Tagblatt shrank last year by more than 5000 copies or 4.5 percent to 110485 copies. However, the diver is not to be taken at full face value, says NZZ publishing director Tobias Trevisan. The reason for this is to be found in errors in the calculation of circulation in 1998, when the East Switzerland Newspaper Association was created. Despite the negative trend in circulation, the newspaper was doing well. NZZ publishing director Trevisan went on to explain: "Thanks to volume growth and price increases, it was even able to post a double-digit growth rate in the advertising market" (dse).
