2009 Financial Reporting
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2009 Financial Reporting Financial Report Media Conference from 15 April 2010 Martin Kall and Sandro Macciacchini, Tamedia AG 1 Financial Reporting 2009, 15 April 2010 Annual Report 2009: Overview Martin Kall Chief Executive Officer 2 Financial Reporting 2009, 15 April 2010 Strong Drop in Revenues and Earnings During 2009 Financial Year in MCHF EBIT margin* 2008 15.0% -14% 1.000 2009 6.7% 890 900 2008 2009 800 766 700 600 500 400 -45% -61% 300 -56% 168 200 134 92 106 100 52 47 0 Revenues EBITDA EBIT Net income *The respective figures refer to the continued operations 3 Financial Reporting 2009, 15 April 2010 Decrease Mirrors Prolonged Financial Crisis… Change of real GDP in per cent Consumer climate index (index points) 6% 30 4% 15 0 2% -15 0% -30 01.08 07.08 01.09 07.09 01.10 -2% -45 01.07 07.07 01.08 07.08 01.09 07.09 01.10 -4% Unemployment rate in per cent of labour force Private consummation change in per cent 4.5% 4% 4.0% 3% 3.5% 2% 3.0% 1% 2.5% 0% 2.0% -1% 01.07 07.07 01.08 07.08 01.09 07.09 01.10 01.07 07.07 01.08 07.08 01.09 07.09 Source: Staatssekretariat für Wirtschaft SECO 4 Financial Reporting 2009, 15 April 2010 …Resulting in Significantly Lower Advertising Investments Jan - Dec 2008/2009, net advertising revenues in print acc. to typology of Swiss Press Types 2009 2008 Changes +/- MA MCHF MA MCHF MA MCHF in % in % Daily press 889 56.0 1,133 56.8 -244 -21.6% -0.8 Regional weekly press 51 3.2 52 2.6 -1 -1.2% 0.6 Sunday press 150 9.4 212 10.7 -62 -29.4% -1.2 Finance and economy* 50 3.2 72 3.6 -22 -30.1% -0.4 Newspapers 1,140 71.9 1,469 73.7 -329 -22.4% -1.8 Mass media 187 11.8 234 11.7 -47 -20.0% 0.1 Special interest press 198 12.5 217 10.9 -19 -8.8% 1.6 Expert press 61 3.9 73 3.7 -12 -16.6% 0.2 Magazines 446 28.1 524 26.3 -78 -14.9% 1.8 Total print 1,586 100 1,993 100 -407 -20.4% 0.0 * not identical to publication «Finanz und Wirtschaft» Source Advertiser statistics Swiss Press/VSW Verband Schweizerischer Werbegesellschaften (Assoc. of Swiss Advertising Firms) 5 Financial Reporting 2009, 15 April 2010 Model: Previous Economic Cycles Showed Similarly Severe Drops Development of job advertisings during economic cycles, change rel. to previous year (in per cent) P Index job advertisings 40% VSW job advertisings in daily press 1 Tamedia job advertisings BZ job advertisings 20% Prognosis 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -20% -40% -35 -60% 6 Financial Reporting 2009, 15 April 2010 The Economic Cycle Explains 90 Per cent of Drop in Revenues Acc. advertising revenues Job ads compared to Total advertising revenues compared to previous cycle previous cycle compared to previous cycles Unemployment rate -12% -35% 2002 = 2.5% -16% +1% 2009 = 3.7% -2% 100 100 100 88 89 -27% 84 82 65 48 Revenues Previous Actual Revenues Previous Actual Revenues Previous Actual 2008 economic revenues 2008 economic revenues 2008 economic revenues (=100) cylce 2009 (=100) cycle 2009 (=100) cycle 2009 Source: Controlling Tamedia 7 Financial Reporting 2009, 15 April 2010 Tamedia Developed Alongside Market Average in 2009 Revenues according to type of Advertising sales development according to earning media segments 0% Newspapers -10% Print revenue Other revenue -20% Other publisher 5% -22,4% -22,0% activity -30% 2% 4% 0% Magazines Copy sales 25% -10% -20% -14,9% -15,8% 65% Advertising -30% revenue 0% No figures E-Media -10% available -8,7% -20% -30% Market Tamedia Source: Advertiser Statistics: Swiss Press; Tamedia Finances 8 Financial Reporting 2009, 15 April 2010 Cost Savings Totalling 90 MCHF in All Areas 1 2 3 4 5 Tages-Anzeiger Der Bund Solothurner Early delivery Classifieds Tagblatt • Cost adjust- • Continuation n • Discontinuation •Transfer of early • Cooperation in ments to lower cooperation of Solothurner delivery to online cate- profits with Tages- Tagblatt in Schweizer Post gories and • Launch of new Anzeiger September 2009 •Weko agrees to development concept in • Creation of transaction in of classified Sept. 2009 business Sept. 2009 online foundation organisation 6 7 8 9 20 minutes News Espace Media Additional measures • Merging of 20 • Discontinuation • Completion of • Cost reductions at 20 Minuten, minutes and Le News Basel and integration of SonntagsZeitung and other titles matin bleu News Berne in Espace Media • Company-wide reduction of vacation • Largest daily summer 2009 • Effective and overtime credits newspaper in • Discontinuation implementation • Consequent reduction of marketing Romandie by News Zurich in of synergy costs in all areas readers fall 2009 potentials * Without additional cost savings at Presse Publicité SR S.A. 9 Financial Reporting 2009, 15 April 2010 Saving Savings Prove Effective; Investments in Online Media Cost development according to business division 2009 rel. to 2008 in MCHF 900 2008 2009 -7% 800 722 674 700 -7% 600 543 Investments 507 500 in new online 400 services -26% 300 227 -8% +6% 200 167 90 100 83 81 86 0 Newspapers Magazines E-Media Services Tamedia 10 Financial Reporting 2009, 15 April 2010 Newspapers Division: Losses at Regional Newspapers Newspapers 2009 MCHF 2005 2006 2007 * 2008 * 2009 2008/09 Revenues 447 475 551 637 521 -18% EBIT 72 85 97 89 11 - 88% EBIT margin 16% 18% 18% 14% 2% - General topics • Consolidation of over-saturated Swiss commuter newspaper market with discontinuation of Cash daily, .ch, Le matin bleu and News • Regional daily newspapers lose additional share in sales and market share Tamedia • 20 Minuten with decrease in revenues and earnings, continued high result level • First positive advertising market feedback for 20 minutes • Subscribed daily newspapers by Tamedia write significant losses for 2009; cost reduction measures will only show full effect during ongoing year • New concepts for Bund and Tages-Anzeiger and their cooperation start being accepted by readership; 2010 once again difficult year for regional newspapers * Respective data 2008 and 2009 without areas discontinued in 2009 11 Financial Reporting 2009, 15 April 2010 20 Minuten with Unique Market Position in Two Language Regions 20 Minuten media network in German- and French- speaking Switzerland 2020 Minuten Minuten media media netwo networkrk G Germanerman‐speaking‐speakingSwitze Switzerlandrland 20 Minuten media network • Commuter papers reach 1.9 million readers every day • Leading online portal with 2.0 million users per month • Monopoly-like position in morning 20 Minuten media network French‐sp. Switzerland 20 Minuten media network French‐sp. Switzerland • Strongest Swiss media brand • Only Swiss daily newspaper in two language regions from one source 12 Financial Reporting 2009, 15 April 2010 Switzerland Remains Leader in Commuter Newspaper Market Number of copies of daily commuter newspapers per 100 inhabitants over 14 years in Europe (comparison) in copies 18 17 16 15 14 14 13 12 10 9 8 8 77 66 6 5 4 2 0 D-CH W-CH SWE DK NL ITA ESP CZ FRA FIN UK Current circul. 861 210 1.000 584 1.200 3.950 2.343 586 2.718 220 2.144 (thsd.) 14+ 4.251 1.377 6.901 4.511 13.428 47.913 34.497 8.736 48.910 4.000 47.265 (thsd.) Source: Metro, 20 Minutes, University of Amsterdam, Verlag 20 Minuten 13 Financial Reporting 2009, 15 April 2010 Subscribed Newspapers with Great Structural Challenges Advertising sales of print Market share of print media Readership numbers of daily media 1988 rel. to 2008, in as part of total advertising papers w/o assoc 1988 rel. MCHF* market 1988 rel. to 2008, in to 2010, readership in per cent million -29% -24% -16% 3.388 78% 2.015 1.702 59% 2.406 1988 2008 1988 2008 1988 2008 Source: Stiftung Werbestatistik Schweiz; *adjusted Source: Werbestatistik der Stiftung Werbestatistik Source: Wemf AG 1988 and 2010; all newspapers for inflation 1988 rel. to 2008 on basis of Federal Schweiz 1988 and 2008; published in 1988 that were not part of umbrella Consumer Price Index assoc. in 1988 and 2010 14 Financial Reporting 2009, 15 April 2010 Fragmented Media Spaces North-East Switzerland and Zurich Coverage below 40 per cent Coverage of respectively leading Schaffhauser Nachrichten 42 65.3% regional daily newspapers in Thurgauer Zeitung Coverage below 35 per cent 35.6% economic areas Mittelland Zeitung 44 Basler Zeitung 50.6% 37.8% 31 43 St. Galler Tagblatt 41 Tages-Anzeiger 54.0% 31.2% 26 14 32 Quotidien Jurassien Mittelland Zeitung 50.0% 54.6% 24 Neue Luzerner Zeitung 57.5% 27 L,Express F.d,Avis Bieler Tagblatt 13 33 21 Südostschweiz 28 44.0% 41.7% 35.6% 34 Neue Luzerner Zeitung Südostschweiz Berner Zeitung 59.7% 67.2% 53.0% 25 Neue Luzerner Zeitung 15 78.3% Berner Zeitung 24 heures 12 La Liberté 63.5% 29 44.0% 50.1% 22 Südostschweiz 62.1% Walliser Bote Tribune de Genève 75.2% 40.6% 51 23 Corriere del Ticino 11 46.6% 16 Nouvelliste 67.1% Source: MACH Basic 2009‐2 15 Financial Reporting 2009, 15 April 2010 Exchange Between NZZ and Tamedia Enhances Future Perspectives Thurgauer Zeitung Regional daily newspaper Circulation: 33,784 Zürcher Unterländer Zürcher Oberländer Regional daily newspaper Regional daily newspaper Circulation: 21,597 Circulation: 36,607 Zürichsee-Zeitung Regional daily newspaper Source: Wemf MACH Basic Circulation: 41,957 16 Financial Reporting 2009, 15 April 2010 Participation Exchange Lifts Coverage on a Competitive Level Coverage of respectively Schaffhauser Nachrichten 42 65.3% leading regional daily Thurgauer Zeitung/ St.