Business News
2008 results: Edipresse withstands well in a turbulent and challenging economic climate
Thursday 26. March 2009 - In a period of economic crisis and profound changes impacting the media industry, the Edipresse Group posted solid results in 2008
In a period of economic crisis and profound changes impacting the media industry, the Edipresse Group posted solid results in 2008:
The operational cash-flow of CHF 88.8 million is up by 28% as compared to last year;
Net income stands at CHF 30.5 million (CHF 32.3 million in 2007);
Group consolidated turnover at CHF 738.3 million is down compared to last year, due to divestments and the removal of certain business activities from the consolidation scope. On a pro forma basis, turnover would have decreased by only 1%.
These results are explained by different factors:
· Overall, Group revenues went from CHF 814.6 million to CHF 738.3 million (-9.4%), due to divestments already realized in the Iberian Peninsula. Thus, revenues from the companies of Hymsa and Semana are no longer accounted for as of 1 July 2007; the same goes for revenues from the Portuguese company Edimpresa, which are no longer consolidated as of 1 July 2008;
· On a pro forma basis, revenues recorded a slight decline of 1%. The solid development of Eastern Europe and Asia compensated for the decreased revenues from Switzerland;
· A number of non-recurring items were accounted for in 2008. Some had a positive effect (in particular the gain realized from the disposal of the Portuguese subsidiary Edimpresa), others a negative effect (for example, depreciations of goodwill). Overall, exceptional items had a CHF 2.8 million positive impact on operating profit for 2008.
In Switzerland, the effects of the economic slowdown have led to a decrease in newspaper advertising turnover. The vigorous measures undertaken to reduce costs in spring 2008 allowed the margins of Swiss activities to be kept at levels close to that of 2007. The growing success of Internet businesses (in particular those from the news websites – lematin.ch, 24heures.ch and tdg.ch, which command the biggest audiences in French speaking Switzerland – as well as thematic websites jobup.ch and homegate.ch) contributed to maintaining a stable financial situation. The progressive integration, as of 2010, of the Swiss activities with the Tamedia Group (announced at the beginning of March 2009) will lead to a transformation and a solid framework for the companys newspapers, magazines and websites, thereby ensuring an organization which will come out of the current crisis stronger. (To note: this transaction is still awaiting approval from the Swiss Competition Commission).
In Spain, the Groups companies hold excellent market positions, but the morose economic context has not allowed for an increase in results.
In Eastern Europe, Poland stands out as an important and effective contributor to the Group. The launch of the people magazine Party continues to remain successful in 2008 with close to 500,000 copies (on average) sold and profitability achieved in its first full year of operation. The Russian and Ukrainian activities reached their 2008 objectives and continue to grow, despite an extraordinarily difficult political and economic environment.
The activities of both Edipresse Asia and Edipresse Luxe have developed quickly and profitably, with a number of launches, in particular the watchmaking titles: GMT XXL in Romania, in Malaysia, Singapore, Hong Kong and Taiwan, as well as the French edition of Revolution (France, Belgium and French speaking Switzerland).
Except for Internet activities, the year 2009, like for all media companies, has started in a challenging way. To provide forecast results for the end of the year would be very uncertain, particularly due to the unpredictability and extreme volatility of advertisers.