Tx Group Ag · SIX:TXGN
Tx — H1 2020 Earnings Presentation
40 slides from Tx's earnings presentation, 2020
Slide 1: Slide 1
Slide 2: Half-year figures 2020 Media and Analyst Conference
Half-year figures 2020 Media and Analyst Conference
Slide 3: Changes in the accounting standard
Business results for first half 2020 3 Changes in the accounting standard TX Group applied the following new and revised standards and interpretations for the first time in the interim financial statements for 2020. − IFRS 3, “Amendments regarding the definition of a business” (amendment to IFRS 3,
Slide 4: Changes to the group of consolidated companies
Business results for first half 2020 4 Changes to the group of consolidated companies Significant changes to the consolidated and associated companies/activities in 2020 − There were no material changes to the group of consolidated companies during the first half of 2020 Significant changes to the c
Slide 5: New segmentation as of 2020 financial year (1/2)
Business results for first half 2020 5 New segmentation as of 2020 financial year (1/2) Restatement of segment information − As of 1 January 2020, a decentralised organisational structure was formed under the umbrella of TX Group comprising four largely self-contained companies: • All specialised pl
Slide 6: New segmentation as of 2020 financial year (2/2)
Business results for first half 2020 6 New segmentation as of 2020 financial year (2/2) Paid Media Free Media & Commercialisation Marketplaces & Ventures • Daily newspapers, Sunday newspapers, and • Goldbach • Marketplaces magazines • 20 Minuten and other free-media ventures • Ventures 2019 • Printi
Slide 7: Expanded income statement: new revenue categories
Business results for first half 2020 7 Expanded income statement: new revenue categories Advertising revenue Print revenue Revenue from classifieds and services Other operating revenue Commercialisation and intermediary revenue Other income Revenue from subscriptions and individual sales − In the in
Slide 8: Depreciation and amortisation of brand rights as of 2020 – impairment
Business results for first half 2020 8 Depreciation and amortisation of brand rights as of 2020 – impairment Change in measurement principles for intangible assets Depreciation and amortisation from business combinations increased from CHF 30.1 million to CHF 34.9 million. The CHF 5.5 million increa
Slide 9: Result affected by the coronavirus-related economic downturn as well as the Tamedia impairment
Business results for first half 2020 9 Result affected by the coronavirus-related economic downturn as well as the Tamedia impairment -90 Minority interests 2019-6 2020-6 EBIT-adj. EBIT TX Group margin margin -30 54 -93 14 524 2019-6 13.6 % 7.8 % -120 40 7 Depreciation and -117 431 2020-6 2.9 % -24.
Slide 10: Advertising down by around 20 per cent – income in March, April and May significantly lower
Business results for first half 2020 10 Advertising down by around 20 per cent – income in March, April and May significantly lower year-on-year Print Cinema TV Internet* Radio Out-of-home -19% -40% -34% 545 523 524 0% -11% 446 446 -5% 25% 443 455 410 27% 27% 404 392 24% 25% 26% 348 29% 27% 29% 313
Slide 11: Supraregional daily newspapers and Sunday press hit particularly hard by decline in print advertising
Business results for first half 2020 11 Supraregional daily newspapers and Sunday press hit particularly hard by decline in print advertising -37% 2019-6 2020-6 123 -24% -45 97 78 74 -26% -35% 36 -27% -23% 31 -36% -28% 26 20 9 9 11 13 10 7 6 8 Daily press I Daily press II/III Regional Sunday press F
Slide 12: Revenue loss of over 80 per cent due to decline in advertising
Business results for first half 2020 12 Revenue loss of over 80 per cent due to decline in advertising -64 -1 -12 -3 -10 -3 1 -93 431 14 1 29 121 26 110 129 Advertising revenue Revenue Commercialis Revenue from Print revenue Other Other income Revenues from ation and subsriptions operating classifie
Slide 13: Organic growth down 20 per cent
Business results for first half 2020 13 Organic growth down 20 per cent 2019-6 108 2019-6 108 TX Markets -7% -7% 2020-6 101 2020-6 101 -7 -7 2019-6 78 2019-6 78 Goldbach -22% -22% 2020-6 61 2020-6 61 -17 -17 2019-6 70 2019-6 70 20 Minuten -45% -43% 2020-6 39 2020-6 40 -31 -31 2019-6 272 2019-6 276 T
Slide 14: Digital revenue share climbs to 55 per cent
Business results for first half 2020 14 Digital revenue share climbs to 55 per cent 2019-6 2019-6 2019-6 Digital non-publishing Publishing digital advertising market Publishing digital user market 24% 23% 37% Digital publishing Print advertising market Print user market 50% Print publishing 13% 76%
Slide 15: Normalised net income down CHF 59 million on prior-year period
Business results for first half 2020 15 Normalised net income down CHF 59 million on prior-year period -59 34 25 Net income 0 excluding one-off effects 2019-6 109 85 1 Net income Disposal gains Impairment Tax effect of one- Net income off effects excluding one-off effects Normalised net income in 20
Slide 16: Margin remains high for TX Markets, losses for other companies
Business results for first half 2020 16 Margin remains high for TX Markets Losses for other companies 2019-6 2020-6 276 Number of 582 Number of 610 Number of 244 Number of 1,500 Number of 704 employees employees employees employees employees 225 EBITDA EBIT-adj. EBITDA EBIT-adj. EBITDA EBIT-adj. EBI
Slide 17: Cash flow from operating activities declined by CHF 50 million
Business results for first half 2020 17 Cash flow from operating activities declined by CHF 50 million 2019-6 Cash and cash 2020-6 equivalents, 30 June -221 2020: CHF 184.3 million 225 -31 -50 -177 75 65 70 44 +93 15 4 -126 -107 -220 Cash flow from (used in) Cash flow from / (used Cash flow from / (
Slide 18: Investments in property, plant and equipment and intangible assets (Capex)
Business results for first half 2020 18 Investments in property, plant and equipment and intangible assets (Capex) – CHF 6 million up on previous year 2019-6 in CHF millions 65 7 54 4 0 0 2020-6 in CHF millions 15 8 8 1 0 0 Cash flow from (used Investment in Investments in Sale of property, Sale of
Slide 19: Equity ratio up to 74 per cent
Business results for first half 2020 19 Equity ratio up to 74 per cent 10% Current assets 10% Net liquidity, 30 June 2020: 17% Non-current assets 17% CHF 112.0 million Current liabilities 73% Non-current liabilities 74% Equity 532 482 459 437 290 252 Excluding minority 2,310 2,155 holdings, the equi
Slide 20: TX Markets
20 TX Markets
Slide 21: Ricardo and tutti.ch marketplaces perform well, JobCloud hit by coronavirus crisis
Business results for first half 2020 21 Operational reporting – TX Markets Ricardo and tutti.ch marketplaces perform well JobCloud hit by coronavirus crisis 2019-6 2020-6 Number of 582 employees − TX Markets comprises the JobCloud job portal, the Homegate -7% property platform, the Ricardo and Tutti
Slide 22: Job market highly sensitive – Homegate performing well – Ricardo and Tutti with sharp growth
Business results for first half 2020 22 Operational reporting – TX Markets Job market highly sensitive to economic situation – Homegate performing well despite crisis – Ricardo and Tutti with sharp growth 2019-6 2019-6 2019-6 2019-6 -7% +18% +30% +19% 2020-6 2020-6 2020-6 2020-6 Sessions per month S
Slide 23: Outlook: TX Markets will expand its platform ecosystem
Business results for first half 2020 23 Operational reporting – TX Markets Outlook: TX Markets will expand its platform ecosystem to generate cooperation potential Two-pillar strategy: Objectives: − Expand market leadership in Switzerland − Expand the platform ecosystem to increase business resilien
Slide 24: Goldbach
24 Goldbach
Slide 25: Goldbach hit hard by coronavirus crisis related advertising downturn
Business results for first half 2020 25 Operational reporting – Goldbach Goldbach hit hard by coronavirus crisis related advertising downturn 2019-6 2020-6 Number of 610 employees -22% − Goldbach includes Goldbach Media (video marketing); Goldbach EBITDA EBIT-adj. 78 margin: margin: Audience (online
Slide 26: Ad impressions video inventory up sharply – 47 per cent market share
Business results for first half 2020 26 Operational reporting – Goldbach Ad impressions video inventory up sharply – 47 per cent market share among 15- to 49-year-olds in German-speaking Switzerland +123% Neo Advertising: Start of 2020: market 1,800 new advertising spaces, of -2% which 730 are billb
Slide 27: Outlook: Goldbach will continue to prioritise a Swiss Media Sales House
Business results for first half 2020 27 Operational reporting – Goldbach Outlook: Goldbach will continue to prioritise the establishment of a “Swiss Media Sales House” Establishment of a “Swiss Media Sales House” as well as the continued development of business − Decline in advertising reservations
Slide 28: 20 Minuten
28 20 Minuten
Slide 29: Reduction in advertising budget plus lack of commuters = negative operating income
Business results for first half 2020 29 Operational reporting – 20 Minuten Reduction in the advertising budget plus a lack of commuters = negative operating income 2019-6 2020-6 Number of 244 employees − 20 Minuten comprises the 20 Minuten media network as well as -44% stakes in Heute (Switzerland),
Slide 30: 20 Minuten with strong digital growth – print run also reduced
Business results for first half 2020 30 Operational reporting – 20 Minuten 20 Minuten with strong digital growth – nationwide print run also reduced as a result of the lockdown +32% +9% -18% 2019-6 2020-6 2019-6 2020-6 2019-6 2020-6 Unique clients nationwide Visits nationwide Nationwide print run
Slide 31: Outlook: One third of journalists are working in the video segment
Business results for first half 2020 31 Operational reporting – 20 Minuten Outlook: One third of journalists are working in the video segment – television studio to be launched in autumn Head: Silvana Guanziroli Daily Serial Video News team Seasonal Daily selection of Regular formats − Launch of new
Slide 32: Tamedia
32 Tamedia
Slide 33: Negative operating income due to advertising downturn and decline in print users
Business results for first half 2020 33 Operational reporting – Tamedia Negative operating income due to the advertising downturn and the decline in print users 2019-6 2020-6 Number of 1,500 − Tamedia comprises paid daily and Sunday newspapers as well employees as all publishing services -19% 276 EB
Slide 34: Subscription numbers increasing overall – user market revenue down
Business results for first half 2020 34 Operational reporting – Tamedia Subscription numbers increasing overall – user market revenue down due to decline in print subscribers -2% +2% -35% +46% 2019-6 2020-6 2019-6 2020-6 2019-6 2020-6 2019-6 2020-6 Total subs Digital-only subs User market revenue Ad
Slide 35: Outlook: Stronger focus on readers and digital subscriptions at Tamedia
Business results for first half 2020 35 Operational reporting – Tamedia Outlook: Stronger focus on readers; supraregional collaboration; and targeted increase in digital subscriptions at Tamedia Challenges: Strategy: Negative revenues: − Focus on readers and their wishes − Print subscriptions − Clos
Slide 36: Group & Ventures
36 Group & Ventures
Slide 37: Restructure central services to reduce costs by 20 per cent
Business results for first half 2020 37 Operational reporting – Group & Ventures Restructure central services to reduce costs by 20 per cent 2019-6 2020-6 Number of 704 employees − The Group & Ventures segment holds the majority interests of TX +34% Group in Doodle, Olmero and Zattoo as well as inve
Slide 38: Doodle and Zattoo continue to grow – subscriptions and B2B
Business results for first half 2020 38 Operational reporting – Group & Ventures Doodle and Zattoo continue to grow – particularly in terms of subscriptions and the B2B segment 2019-6 2019-6 +98% +9% 2020-6 > CHF 4 million 2020-6 > 220,000 subscriptions ARR (annual recurring revenue; annual run rate
Slide 39: Overview: Expansion and restructuring dominate Group & Ventures outlook
Business results for first half 2020 39 Operational reporting – Group & Ventures Overview: Expansion and restructuring dominate the Group & Ventures outlook Ventures: Technology: Group: − Expand the consumer fintech − Continued restructuring to − Continue to implement the ecosystem create a cloud co
Slide 40: Slide 40