1 half year figures 2007 - startseite - tamedia...5 half year figures 2007 slight growth of daily...
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Half Year Figures 20071
Half Year Figures 2007
Half Year Figures 20072
Martin KallChief Executive Officer
Overview of 1st Half Year 2007
Half Year Figures 20073
EBIT Margin*
2006: 17.8%2007: 17.3%
in CHF million
Tamedia increases income and maintains result at a high level
+5.5%
+0.5% +2.5%
*The EBIT figures refer to the respective continued operations
353.7
76.162.9
76.5 64.4
373.0
0
50
100
150
200
250
300
350
400
Income EBITDA EBIT2006 2007
Half Year Figures 20074
Strong economic growth continues
• Compared to the first quarter of the previous year, the gross domestic product (GDP) increased strongly by 2.4%. Forecasts for Switzerland see continous, slightly weaker growth
• Tamedia expects slightly less growth in 2008
Unemployment declined again
• The unemployment rate decreased during the first six months of 2007 and reached 2.5% in June 2007 (previous year: 3.1%)
• As a result, fewer than 100 000 people are unemployed for the first time in almost five years
Positive consumer mood
• The consumer mood index improved again in the first half year 2007 and reached +20 index points in June 2007
• In July 2007, the index of consumer mood declined slightly, but remained at a high level and lies now at +15 index points
The economic environment continues to improve well
Source: Economics Ministry SECO
Half Year Figures 20075
Slight growth of daily newspapers for the first time
• The print advertising expenditures in daily newspaper increased slightly again for the first time in seven years and reached 96.6 index points in June (June 2006: 92.4; June 2005: 94.0; June 2004: 94.2; June 2003: 98.0) according to the Publicitas index
• But daily newspapers still profit disproportionately little from the growth
Strong growth of job ads
• The complete job market increased from December to June according to the Publicitas index by 15.3%
• The income of Tamedia products StellenAnzeiger and Alpha increased by 16.0%
Increasing advertising expenditures
• According to MediaFocus Swiss advertising expenditures increased by 8.2% from January to June compared with the previous year
Advertising expenditures profit from strong economic growth
Source: Publicitas; Tamedia; MediaFocus
Half Year Figures 20076
90
95
100
105
110
115
120
125
130
135
140
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
June 2007 compared with Dec. 2006:
Growth of 3%
Publicitas index: development of advertising expenditures (commercial ads) in the daily
press (12/1993 = 100)
Increase in advertising expenditures at daily newspapers for thefirst time since 2001
Source: Publicitas
Half Year Figures 20077
50
100
150
200
250
300
350
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
June 2007 compared with Dec. 2006:
Growth of 15%
Publicitas index: Development of advertising expenditures (job ads) in the daily press
(12/1993 = 100)
Source: Publicitas
Growth of the job market becomes even more dynamic
Half Year Figures 20078
Production industry as well as paper, cardboard, publishing and printing trades 1996 -2007
Source: Federal Statistics Office
Industry environment has still not profited from the growth
80
90
100
110
120
130
140
150
160
1996-1 1997-1 1998-1 1999-1 2000-1 2001-1 2002-1 2003-1 2004-1 2005-1 2006-1 2007-1
TOTAL of processing trade; industry Paper, cardboard, publishing and printing trades
Half Year Figures 20079
Jan. - June Jan. - June Change2006 2007 in %
Operating revenue 252.0 269.9 7.1
Operating expenses (200.3) (218.3) 9.0
Operating income before 51.7 51.6 (0.2)depreciation (EBITDA)
Depreciation (1.4) (0.9) (33.5)
Operating income (EBIT)) 50.3 50.7 0.7
in CHF million
Newspapers show growth in income and increased investments
Overview of the most important key figures of the Newspaper Division
Half Year Figures 200710
General topics
• Through the launch of new media titles the competition on the newspaper market is increasing both on Sunday and during the week
• The consolidation of the newspaper market is however proceeding at the same time
Tamedia
• The Commuter newspaper 20 minutes continually increases circulation and is already the leading title in the market of commercial ads in the French-speaking part of Switzerland; positive development of number of readers expected
• Four of five regional issues of Tages-Anzeiger exceed expectations: extremely positive development of large print circulation
• Successful start of the newspaper group Nordostschweiz in April 2007
• Necessary changes at local newspapers Vorstadt and Uster Nachrichten
• 20 Minuten: increased circulation of 25% and continuous increase in reader numbers
• Intensive work on project of a new commuter newspaper with Basler Zeitung and BernerZeitung
Newspaper Division: Project of a second free daily newspaper
Half Year Figures 200711
80
100
120
140
160
180
200
220
240 220,000 copies
Distributed copies of 20 minutes from March 2006 to June 2007
in thousands
20 minutes with continually growing circulation…
March 2006 April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June 07
Half Year Figures 200712
Leading daily newspapers in the Romandie in the first half year 2007Gross market share in % of advertising revenue without supplements and special sections
Source: MediaFocus in first half year 2007Tamedia and associated companies Other Titles
16
14
13
11
8 7
6 65
5
0
2
4
6
8
10
12
14
16
18
20 minutes Le Temps 24 heures Tribune deGenève
Le Matin L' Express Nouvelliste L'Impartial Liberté Le matinbleu
…and leading position in the advertising market in Romandie
Half Year Figures 200713
Jan. - June Jan. - June Change2006 2007 in %
Operating revenue 38.0 39.8 4.6
Operating expenses (31.8) (34.3) 7.7
Operating income before 6.2 5.5 (11.4)depreciation (EBITDA)
Depreciation (0.0) (0.1) 27.6
Operating income (EBIT)) 6.2 5.4 (11.7)
in CHF million
After discontinuation of Facts the division Magazine reaches forthe first time the targeted figures
Overview of the most important key figures of the Magazine Division
Half Year Figures 200714
General
• Continued strong competition on the weekly magazine market
• Discontinuation of Cash by Ringier in June 2007
Tamedia
• Discontinuation of Facts at end of June 2007; difficult decision following years of substantial losses
• Annabelle maintains sales at a high level and remains the leading Swiss women's magazine despite decline in result
• Schweizer Familie obtains pleasing development of sales and revenue
Main Topics in the Magazine Division
Half Year Figures 200715
Jan. - June Jan. - June Change2006 2007 in %
Operating revenue 24.2 28.0 15.8
Operating expenses (24.5) (26.9) 9.7
Operating income before (0.4) 1.1 -depreciation (EBITDA)
Depreciation (0.4) (0.5) 13.3
Operating income (EBIT)) (0.8) 0.6 -
in CHF million
E-Media after loss in 2006 with positive EBIT closing
Overview of the most important key figures of the E-Media Division
Half Year Figures 200716
General
• Mergers and Accquisitions in the online segment increase
• Strong growth of online advertising income levels out
• Online news sites with retained development
• New radio and TV law took effect in April 2007; termination of contract and new call for bids for radio and TV licenses in second half year 2007
Tamedia
• Section markets homegate.ch, alpha.ch and jobwinner.ch show very good development
• Continued expansion of 20minuten.ch and greatly increasing user figures and income
• Foundation of Mediasense in corporation with partner radio stations of Swiss Radio Pool
• Sale of Radio Basilisk and the share in RV Radio Vision AG due to planned merger with Espace Media Groupe in planning
• Project of an online news network between baz.ch, espace.ch and tagesanzeiger.ch
Electronic Media: Growth of online advertising income levels out
Half Year Figures 200717
The new TV-supply area Nordostschweiz
Schaffhausen• Stand alone
information window for 74 000 inhabitants
• Concession fees for program window
Zurich• Centre zone with 1.3
million inhabitants• No stake of reception
fees for the centre zone
Thurgau• Stand alone
information windowfor 235 000 inhabitants
• Concession fees for program window
Schaffhausen• Eigenständiges
Informationsfenster für 74’000 Einwohner
• Konzessionsgebühren für Programmfenster
Schaffhausen• Eigenständiges
Informationsfenster für 74’000 Einwohner
• Konzessionsgebühren für Programmfenster
Loss of importantoverlap• Important areas in the
cantons Aargau, Glarus, Schwyz and St. Gallen, which were up to now provided by TeleZüri, cannot be provided any longer despite the focus on Zurich
Half Year Figures 200718
Jan. - June Jan. - June Change2006 2007 in %
Operating revenue 121.2 127.3 5.0
Operating expenses (102.7) (109.0) 6.1
Operating income before 18.5 18.3 (1.2)depreciation (EBITDA)
Depreciation (11.4) (10.6) (6.7)
Operating income (EBIT)) 7.2 7.7 7.6
in CHF million
Services with slight income growth
Overview of the most important key figures of the Service Division
Half Year Figures 200719
General
• Margin pressure continues in the printing industry
• Increase of paper price tends to continue
Tamedia
• Subcontracting of printing orders for 20 Minuten to partners due to new, large print circulation of Tages-Anzeiger
• Newspaper printing with an average of 860 000 newspapers per day and high capacity utilization; capacity limits mostly reached at night
• Development of income in the job sheet-fed printing area still unsatisfactory
• Integration of the early delivery in Zuvo of St. Galler Tagblatt in the eastern part of Switzerland
Services: High capacity utilization in newspaper printing
Half Year Figures 200720
* The EBIT product result was deducted from the Tamedia EBITDA until 1995. For the years 1990-1994, the EBIT was calculated using an average page income and 80% margin.
Development of Tamedia EBIT margin with jobs and Alpha* since 1990
EBIT margin remains high despite increased expenditures
4%
20%
-7%
17%
-10%
-5%
0%
5%
10%
15%
20%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1. HY2006
1. HY2007
Half Year Figures 200721
* The EBIT product result was deducted from the Tamedia EBITDA until 1995. For the years 1990-1994, the EBIT was calculated using an average page income and 80% margin.
Development of Tamedia EBIT margin without jobs and Alpha* since 1990
Growth in job market finances expansion of newspapers; Increasing dependence on job ads as result
-19%
4%
-14%
11%
9%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 1. HY2006
1. HY2007
Half Year Figures 200722
Economic framework conditions
• Growth of the Swiss economy will probably continue in a slightly weaker form
• The unemployment rate should continue to decline in the year 2008
• Tamedia expects the consumer mood to remain positive
Media market
• Weak growth of commercial print advertising expenditures will probably continue
• Growth of job ads should continue thanks to the declining unemployment, especially among manager positions: other areas with substantial decline
Outlook for Tamedia
• Raise of the circulation of 20 minutes in the Romandie to 240 000 copies
• Raise of the 20 Minuten circulation in the German speaking part to 550 000 copies
• Launch of the commuter newspaper L’Essentiel in Luxembourg before the end of 2007
• Integration of Espace Media after approval by the Competition Commission
• Project of second commuter newspaper and a leading online news network for Switzerland in collaboration with Basler Zeitung and Berner Zeitung
Forecast and outlook: Economic growth will probably continue
Half Year Figures 200723
Christoph ToniniHead of the Finances & Services Division
Finance Report of 1st Half Year 2007
Half Year Figures 200724
Discontinued operations
• The news magazine Facts has been discontinued at the end of June 2007 due to a lack of economic perspectives
• Radio Basilisk must be sold due to the merger of Tamedia and Espace Media
Segment information with slight changes
• Newspapers new EDITA S.A.
• Magazines Facts no longer included
• Electronic Media Radio Basilisk and RV Radio Vison AG no longer included
• Services unchanged
IFRS standards
• The partially revised accounting standards had no bearing on the accounting policies of Tamedia
• The former standard IFRS 5, Article 6 ff was applied, and the activities of Facts, Radio Basilisk and RV Radio Vision were shown as discontinued operations; the data of the previous year was adjusted correspondingly
Comments on the Half Year Statement 2007
Half Year Figures 200725
in CHF million
Media income increases especially thanks to job ads and 20 Minuten
+5.5%
+7.1%
-12.1% -0.3%
312.6
23.8 17.3
353.7334.9
21.0 17.2
373.0
0
100
200
300
400
Media Income Print Income Other Operating Income Operating Revenue
2006 2007
Half Year Figures 200726
in CHF million
Investments in new projects result in Increased Expenditures
+6.8%
+6.9%+8.2%
+4.9%
81.4107.4
88.8
277.6
86.9
117.092.7
296.6
0
100
200
300
Material Expendituresand Third-Party Services
Staff Expenditures Other Operating Operating Expenditures
2006 2007
Expenditures
Half Year Figures 200727
in CHF million
EBITDA increases by 0.5% – Margin declines slightly
+0.5%
+6.8%
+5.5%
353.7
277.6
76.1
296.6
76.5
373.0
0
50
100
150
200
250
300
350
400
Operating Revenue Operating Expenditures EBITDA
2006 2007
Half Year Figures 200728
in CHF million
Depreciation declines by 8.7% and is now at CHF 12 million
-8.7%
-6.3%
-15.0%
-63.6%
11.0
1.9
0.3
13.2
10.3
1.60.1
12.0
0
5
10
15
20
Depreciation on Investment in Kind
Depreciation on OtherIntangible Fixed Assets
Other Depreciation Depreciation
2006 2007
Half Year Figures 200729
in CHF million
Net income from Continued Operations increases by 8.3%
+8.3%
+0.5%
+2.5%76.1
62.9
52.7
64.4
57.0
76.5
0
10
20
30
40
50
60
70
80
90
EBITDA EBIT Result of ContinuedOperations2006 2007
Half Year Figures 200730
in CHF million
The overall group result declines by 2.1%, above all due to Facts discontinuation
-2.1%
+0.5%
+2.5%76.1
62.9
52.3
64.4
51.2
76.5
0
10
20
30
40
50
60
70
80
90
EBITDA EBIT Group Result
2006 2007
Half Year Figures 200731
in CHF million
All divisions show income growth
+7.1%
+4.6% +15.8%
+5.0%
+5.5%
+12.5%
252
38 24
121
82
28
92
373354
127
40
270
0
100
200
300
400
Newspapers Magazines E-Media Services IntercompanyElimination
Total
2006 2007
Half Year Figures 200732
in CHF million
EBIT with slight growth despite substantial investments
-11.7%
+2.5%
+0.7%
+7.6%
50.3
6.2
-0.8
7.2
62.9
50.7
5.40.6
7.7
64.4
-20
0
20
40
60
80
Newspapers Magazines E-Media Services Total
2006 2007
Half Year Figures 200733
in CHF million
Higher Operative Cash Flow results again in increased liquidity
+10.4%
+17.9%
+4.4%
40.0
5.3
-30.9
14.4
-4.4
-32.3
17.0
53.7
-50
0
50
100
Cash Flow fromBusiness Activities
Cash Flow fromInvestment Activities
Cash Flow fromFinancing Activities
Change of Cash Flow
2006 2007
Half Year Figures 200734
Balance Sheet shows again an increase of the Equity Capital Rate
Equity Capital Rate: 65.4%
in CHF million
517.4 497.1
271.5 305.2
60.8 56.7
524.8503.5
220.8224.6
0
100
200
300
400
500
600
700
800
900
12.2006 12.2006 06.2007 06.2007
Non-Current Assets Current Assets Equity Capital
Long-Term Debt Short-Term Debt
65.4%63.8%
Half Year Figures 200735
Substantially higher Equity Capital thanks to profits
Current assets/non-current assets
• While current assets increased by CHF 22.3 million due to the operative cash flow, non-current assets recorded a reduction of CHF 20.3 million
Total assets
• Total assets rose by CHF 13.4 million, especially thanks to the positive development of liquidity
Shareholders’ equity
• Shareholders' equity also increased substantially by CHF 21.3 million to CHF 524.8 million
Equity capital rate
• The equity capital rate again increased and is now at a high 65.4%
Half Year Figures 200736
Summary of the Finance Report of 1st Half Year 2007
Income Statement
• With income growth of 5.5%, Tamedia had substantial growth of income in the first half year 2007 for the third time in a row
• The EBIT margin is declining slightly from 17.8% to 17.3% due to major investments in the regionalization of Tages-Anzeiger, expansion of 20 minutes in the Romandie as well as 20minuten.ch
• All segments of Tamedia show a positive result on the level of EBIT
• Closing costs for Facts are the main reason for the slight decline of the Group result to CHF 51.2 million
Balance sheet
• The equity ratio is again higher at 65.4%
• Liquidity (following large acquisitions in 2005) is already at a high level again. As a result, financing the merger with Espace Media will be possible to a large extent withown means
Half Year Figures 200737
Stock price in 1st Half Year: Below-Average Growth
SPI Media: 7.86%
Tamedia: 4.27%
SPI: 6.41%
2.1.2007 = 100
SPI Media = 37.49 % Publigroupe N; 17.23 % Tamedia N; 13.34 % AffichageN; 10.96 % Edipresse I; 10.38 % OrellFüssli N; 5.89 % Agen N; 4.69 % Goldbach Media AG N
90
95
100
105
110
115
120
January February March April May June
Half Year Figures 200738
Martin KallChief Executive Officer
2nd Half Year 2007 and Outlook
Half Year Figures 200739
Espace Media: Approval of the Competition Commission
Merger key factors
• Tamedia and Espace Media Groupe announced their merger on 24 May 2007
• Tamedia is acquiring 80% of the share capital of Espace Media, and the previous majority shareholders of Espace Media will hold a substantial interest in Tamedia with 600 000 new shares
Competition commission procedure
• The Swiss Competition Commission approved the merger of Tamedia and the EspaceMedia Groupe without reservations on 20 August 2007
Next steps
• Carrying out the approved capital increase and implementing the legal merger of the two companies by the end of 2007
• Examination of the organization of the new company at the same time
• The work on the project of a new commuter newspaper and an online news network with Basler Zeitung and Berner Zeitung continues at top speed
Half Year Figures 200740
Starting in 2008: Long-term implementation of the merger
Media and Sites of Tamedia Starting as of 2008
Half Year Figures 200741
Luxembourg: A small country with high performance capability
LuxembourgInhabitants 476‘000Population density 185Area in km2 2,568GNP 2006 32 billion €GNP per capita 57,226 €Advertising expenditures1 119 billion €Adv. expenditures per capita1 264 €SwitzerlandInhabitants 7,415,000Population density 180Area in km2 41,285GNP 2004 290 billion €GNP per capita 39,090 €Advertising expenditures1 2,103 billion €Adv. expenditures per capita1 284 €1 2004 without posters, movies, text, Internet and supplements; Sources: BfS,Statec, ILReS, Mediafocus
Half Year Figures 200742
GNP per capita in thousand USD1) Unemployment rates Work productivity2)
1) Assessed according to Geary Khami's buying power parity2) In USD per work hour, Source: Groningen Growth and Development Centre and the Conference Board, January 2005, all data from 2004
Luxembourg has a top position in European comparison
0 60'000
Turkey
Portugal
Greece
Spain
Germany
Italy
Finland
Austria
Netherlands
Belgium
France
GB
SwedenSwitzerland
Iceland
Denmark
Ireland
Norway
Luxembourg
0.0% 12.0%
Spain
Greece
France
Germany
Finland
Italy
Belgium
Portugal
Sweden
Denmark
GB
Netherlands
Austria
Ireland
Norway
Switzerland
Luxembourg
0.00 40.00
Portugal
Greece
Spain
Iceland
Switzerland
Italy
GB
Finland
Sweden
Germany
Austria
Denmark
Netherlands
Ireland
Belgium
Luxembourg
France
Norway
Half Year Figures 200743
St. Paulus, Editpress, RTL: Largest media offer in Luxembourg
St. PaulusDaily newspapers
Magazines and weekly newspapers
Electronic media
EditpressDaily newspapers
Magazines and Weeklies
Electronic media
TV3 Kombi (Suppl.)
RTLElectronic media
Radio & TéléLëtzebuerg
Other daily newspapers:
Magazines and Weeklies
Electronic media
Half Year Figures 200744
Development of gross advertising income in Luxembourg 1995-2004
1) Without posters, movies, teletext, internet and supplements 2) Magazines for a wide audience and trade journals are not separated in Luxembourg; Source: ILReS
43 43 45 49 5462 64 64 67 69
7984
91
103
112 111114
119
74
71
0
30
60
90
120
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
in million euros
Advertising market is growing continually;Newspapers have a large share
TV 8%
Magazines & weekly press
17 %
Radio 17%
Daily newspapers58 %
Half Year Figures 200745
Source: Mach Basic 2007-1; TNS Media June 2007
Readers in 2005 in thousands
15-2425-34
35-4950-6465+
Age
Region
Sex
Level of education
Lux. City
Rest of metropolitan area
Male
Female
BasicAverageHigh
174 1,170
6174
94
117
147
94
105
90
114
98
102
91
112
86
95
11987
South
North + East
Income level
HighAverage
Low
6864
99
134
122
74
145
71
110
91
111
85
99
117
79
95
66
167120
92
79
135152
117
85
81
101
107
105
101
95
115
52
51
56
L‘Essentiel: Great potential with younger readers
Switzerland
Half Year Figures 200746
L‘Essentiel is a modern commuter paper for Luxembourg
Emmanuel Fleig
Publishing Director L‘Essentiel
Member of Editpress Management
Editpress CFO
Denis Berche
Editor-in-ChiefL‘Essentiel
Alvin Sold
Chairman of the Board Edita SA
Publisher and Delegate of the Board of Editpress
General Manager
A competent staff with local roots
Half Year Figures 20074747
Thank you very much for your time and attention!