The TX Group grew organically in 2022, but was significantly less profitable. The bottom line was even a loss. As a result of the significantly lower profitability, the ordinary dividend will be severely reduced.
The TX Group, which is primarily known for its media brands such as “Tages-Anzeiger” or “20 Minuten”, achieved operating income of CHF 925.2 million in the year under review, which corresponds to a minus of 3.4 percent. It should be noted that the sales of the important digital marketplaces Homegate, Ricardo, tutti.ch and Car For You 2022 are no longer included. These now all belong to the Swiss Marketplace Group (SMG).
Organically, the TX Group’s sales increased by 6.7 percent. The JobCloud job platform, Goldbach’s new business in the field of outdoor and the passing on of the higher paper prices in the printing business at Tamedia contributed to this, as the company announced on Thursday.
EBIT margin falls significantly
The operating profit figures are less pleasing. The operating profit at the EBIT level fell by almost 91 percent to 5.9 million. And the operating result before effects from business combinations, which the TX management emphasized, also fell significantly by 56.2 percent to CHF 56.0 million. The margin was still 6.0 percent after 13.4 percent in the previous year. The group cites high paper prices, investments in out-of-home , write-downs at associated companies and the uncertain economic environment as reasons for the decline.
The bottom line was a loss of 4.6 million. This stands in striking contrast to the previous year’s profit of almost 833 million. At that time, the group benefited in particular from the book profit of CHF 778.5 million from the contribution of the online marketplaces to the newly formed joint venture SMG.
“The financial balance sheet for 2022 is unsatisfactory: Our companies Tamedia, 20 Minuten and Goldbach are not meeting expectations,” said publisher and Chairman of the Board Pietro Supino.
Dividend will be reduced
As a result of the lower result, the payout will be slashed. The shareholders are to receive a regular dividend of CHF 0.30 after CHF 3.20 in the previous year. In addition, there will be another special distribution of CHF 4.20 from the inflow of funds following the founding of the Swiss Marketplace Group.
TX Markets remains the mainstay
TX Markets, which is the most important pillar for the group’s results, reported lower operating income for 2022 as a result of the spin-off of the online marketplaces, but was able to increase profitability again. The adjusted EBIT margin improved to 66.7 percent from 42.9 percent in the previous year. The job placement platforms JobCloud in Switzerland and karriere.at in Austria have developed particularly well. Both benefit from the current shortage of skilled workers.
The sales company Goldbach has grown in terms of sales. However, profitability fell significantly as a result of the high investments in the transformation of the company.
Situation in the traditional media business remains difficult
The economic situation in the Group’s traditional core publishing business continues to be difficult. Both the commuter media (20 Minuten) and the paid media titles (Tamedia) suffered from the economic and geopolitical uncertainties, the continuing transformation of the media industry and the high paper prices.
At 13.3 percent for 20 minutes and just 1.4 percent for Tamedia, the adjusted earnings margins (EBIT) are at a low or very low level.
No concrete outlook
As usual, the management of the TX Group does not give a concrete outlook for the current year.
Change in the board of directors
Stephanie Caspar and Claudia Coninx-Kaczynski are proposed for the Board of Directors. As previously announced, Christoph Tonini will be eliminated. He takes over the position of CEO and Delegate of the Board of Directors of the SMG Swiss Marketplace Group. Andreas Schulthess will also no longer compete.