Business News

Edipresse Group 2008 half-year results

Wednesday 10. September 2008 - The Edipresse Group reported a rise in net income for first half of 2008. The company benefited from positive developments in its Internet activities, businesses in emerging markets (Eastern Europe and Asia) and from the exceptional gain realized from the sale of its Edimpresa joint venture participation in Portugal. Edipresse however witnessed decreased margins in Switzerland and Spain.

On a pro forma basis, revenues posted a slight increase of 0.6%, as a result of positive growth in Eastern Europe and Asia, thus compensating for decreased revenues in Switzerland.
In overall terms, Group revenues moved from CHF 428.7 million to CHF 385.3 million (-10.1%) due to the integration of its Spanish activities in the RBA Edipresse group. Therefore revenues for the Hymsa and Semana companies were no longer registered as of July 1st, 2007.
EBITDA remained stable compared to the same period for 2007 at CHF 55.6 million up from CHF 55.3 million, owing notably to the accounting of the gain realized from the disposal of its Portuguese subsidiary.
Net results stood at CHF 24.2 million compared to CHF 22 million in 2007.
During the first half of 2008, Edipresse pursued its strategy of strengthening its Swiss activities, developing digital activities and focusing on markets with high-growth potential (Eastern Europe and Asia). Hence the reason why Edipresse partially pulled out of the Iberian Peninsula by selling its stake in Portugal, while at the same time increasing its shareholding in JobUp (from 45% to 100%) and in Homegate (from 16.5% to 45%). Moreover, the Group continued to invest in new launches in Poland, Russia and Asia.

In Switzerland, Le Matin Bleu posted a strong increase in terms of readership and advertising sales compared to the previous year. It remains the most widely read daily in French-speaking Switzerland. However, in overall terms for the newspaper segment, advertising revenues and copy sales decreased compared to 2007.

In light of the economic slow-down which is predicted for the following months, it is difficult to elaborate upon a forecast for the end of 2008, although shrinking profit margins are to be expected. Advertising markets in Switzerland and Spain will most likely continue their downward trend while Internet growth should persist.