Media TX Group with decline in sales and significantly lower profit
TX Group generated slightly lower revenue in 2024. Profitability suffered as a result of high one-off costs. The marketplaces continue to do well, while the traditional media business continues to struggle.
05.03.2025, 07:34
05.03.2025, 07:35
SDA
The turnover of the TX Group, which is known to the general public primarily for its media brands "Tages-Anzeiger" and "20 Minuten" as well as its marketplaces Jobs, Riccardo, Homegate and Scout24, fell by 4.2 percent to CHF 941.5 million last year. It should be noted that the out-of-home advertising company ClearChannel Switzerland 2024, which was acquired in April 2023, was included in the calculation for 12 months and not just nine months as in the previous year. In its information on the annual financial statements on Wednesday, the TX Group cited uncertainty on the labor market, the weakness of the "traditional" Swiss advertising market and lower print sales as reasons for the decline in revenue.
The reported profit figures show a sharp decline. Operating profit fell by 73.2 percent to 19.0 million. Profit fell by 48.8 percent to CHF 31.1 million. In addition to the decline in operating income, one-off effects had a negative impact on the result, which could not be offset by cost savings. The new strategy at Tamedia and the associated closure of two printing plants led to high one-off costs of CHF 29 million. The development of 20 Minuten's own marketing also led to additional costs.
The adjusted operating result, which is normalized for various effects, decreased by 27.9 per cent to 103.5 million. The corresponding margin was 11.0 percent after 14.6 percent in the previous year.
Dividend of CHF 4.00 after CHF 6.20 in the previous year
TX Group is offering shareholders the prospect of a dividend of 4.80 francs. The Group had already announced at the end of November that it would pay out at least CHF 4.00 for each of the years 2024 to 2026. For 2023, shareholders will receive a total of CHF 6.20 - made up of a regular dividend of CHF 2.00 and a special distribution of CHF 4.20 from the establishment of the Swiss Marketplace Group.
Overall, the annual result for 2024 is below medium and long-term expectations, writes Chairman of the Board of Directors and publisher Pietro Supino in the annual report. However, many important initiatives have been taken to restore the sustainability of the media companies and drive the growth of the Swiss Marketplace Group (SMG) and JobCloud.
Driving forces marketplaces and job advertisements
The online marketplaces combined in the Swiss Marketplace Group (SMG) once again performed very well in 2024. Both revenue and operating profit increased significantly. The EBITA margin was over 41 percent. TX Group holds just under 31% of the shares in SMG. The job platforms also once again made a significant contribution to earnings. However, the challenging environment led to a decline in sales and operating profit.
Journalism continues to face major challenges
The Group's traditional media business continues to face major challenges. Both the paid publications combined in the Tamedia segment and the free media 20 Minuten recorded declining revenues. On an adjusted basis, both generated positive operating income, although the corresponding margins are very low at 7.8 per cent for 20 Minuten and 0.6 per cent for Tamedia. Tamedia underwent a comprehensive strategic realignment in the course of 2024. In addition to drastic cost reductions, the focus of the digital channels is on the four major brands. Both 20 Minuten and Tamedia are also taking the marketing of advertising in their products back into their own hands.
The advertising sales company Goldbach grew in 2024. The out-of-home advertising business of the acquired ClearChannel Switzerland, which was consolidated for the first time for 12 months, made a particular contribution to this.
As usual, TX management is not very informative when it comes to expectations for the current year. "We are very well positioned and can therefore look to the future with confidence," writes Chairman Supino in the annual report.
Martin Kall leaves the Board of Directors
There will be a significant departure at the Group's upcoming Annual General Meeting. Martin Kall, the long-standing CEO and member of the Board of Directors, is stepping down. Miriam Meckel will be proposed for election in his place. The German citizen is Professor of Communication Management at the HSG. Miriam Meckel was previously Editor-in-Chief and Publisher of WirtschaftsWoche at the Handelsblatt Media Group.
