EQS-Ad hoc: Goldbach Group AG

EQS-Adhoc: Goldbach Group AG: Goldbach Group increases revenue and profit

EQS Group-Ad-hoc: Goldbach Group AG / Key word(s): Half Year Results Goldbach Group AG: Goldbach Group increases revenue and profit

24.08.2016 / 05:30 Release of an ad hoc announcement pursuant to Art. 53 KR.

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AD-HOC ANNOUNCEMENT



Business performance in the first semester 2016 Goldbach Group increases revenue and profit

Revenue growth of 3.2% to CHF 234 million - operating result increased on EBITDA level by 12% - net result of CHF 3.7 million - major extensions and acquisitions of marketing mandates in the first semester - further streamlining in the Marketing Services segment through the sale of the Digital Presences business unit - positive financial outlook for 2016 confirmed - CMO Klaus Nadler leaves Goldbach.

Küsnacht, 24.08.2016. The Goldbach Group, which is listed on the SIX Swiss Exchange, had a successful first semester in 2016. The Group increased its revenue in a challenging advertising marketplace by 3.2% against the prior- year period to CHF 234 million. Adjusted for divestments and currency effects, revenue growth was 4.6%. Operating profit before depreciation (EBITDA) came to CHF 13.3 million and operating profit (EBIT) was CHF 11.8 million, corresponding to growth of 12.2% and 10.1% respectively. As an indicator of operational profitability, the EBITDA margin increased to 5.7% during the period under review (prior year 5.2%). The successful sale of the Group's operations in Poland was behind an extraordinary result of CHF +1.9 million, relative to CHF +0.7 million when the Group streamlined its business portfolio in the prior year. After taxes and minority interests, the net result attributable to the shareholders of the Goldbach Group thus came to CHF 3.7 million, compared to CHF 2.4 million in the prior year.

Ad Sales Switzerland The Ad Sales Switzerland segment comprises the Group's advertising sales in Switzerland and achieved revenue of CHF 211 Mio. (+6.5% against the previous year). This growth was reflected in the EBITDA of this segment by a 2.6% increase to CHF 18.1 million.

Swiss TV business continued to grow in 2016, posting a marked increase of 8.9%, in spite of our assessment that the advertising market contracted during the first semester and this year's major TV events, such as the European Football Championships, are mainly being covered by public broadcasters. This success is partly due to the consistent growth of the Goldbach Media (Switzerland) AG channel portfolio, the popularity with advertisers of programmes screened by channels represented by Goldbach and a strong sales performance. Moreover, the early and multi-year extension of the marketing strategy with the media group RTL Deutschland in the first half of 2016 established a long-term working relationship with this important partner. The nomination of Goldbach Media (Switzerland) AG as the best marketer by advertising clients and media agencies at the Media Trend Awards (for the fifth consecutive year) was equally gratifying.

Radio also performed well, although it did not quite reach the record revenue levels of the months following the abandonment of the euro minimum exchange rate in January 2015, which it wasn't expected to do. The popularity of advertising formats on digital radio platforms such as Spotify is still growing.

Goldbach has managed to position itself as a prominent leader in the strongly growing segment of online video advertising through its acquisition of exclusive marketing mandates for Zattoo and Teleboy. The company also entered into a strategic partnership with VICE, a rapidly growing media platform for young adults, and added the website transfermarket.ch to its sport segment. Goldbach Crossfactory and Goldbach SynchScreen were launched as innovative products in the first semester, enabling an extension of the TV brand presence in the online domain. It is worth highlighting that this offer enables programmes to be delivered via the mobile platform Splicky, which was acquired in 2015.

Ad Sales Germany There was organic business expansion in Germany, although it proved slower than projected. Nonetheless, the quarter-on-quarter revenue growth shows that the business is on the right track. Goldbach has accumulated a major advertising inventory over the past one-and-a-half years and currently markets 86 media platforms, of which 28 are pay and free TV broadcasters which have had an AGF licence with Goldbach TV since the end of 2015, making them eligible for the advertising market. In addition, cross-border products have been under development in Germany for the German, Austrian and Swiss markets since the start of 2016. In the first half-year, Ad Sales Germany achieved major revenue growth exceeding 150% to CHF 3.5 million. The half-year EBITDA result improved to CHF -1.3 million (prior year CHF -1.8 million).

Ad Sales Austria Business development remains positive in Austria. The TV portfolio was expanded by the start of the advertising window N24. Goldbach has Austria's largest independent online marketing network. Ad Sales Austria posted revenue of CHF 5.7 million in the first half-year and an EBITDA of CHF 0.1 million.

Marketing Services The Marketing Services segment failed to meet expectations in the first semester of 2016 due to the persistently fraught market situation. Revenue was down by 23% to CHF 14.7 million and the EBITDA operating result was CHF -1.4 million (prior year -0.6 million). The Group conducted a strategic review of the segment in 2016. Having withdrawn from a plan last year to develop a 360-degree creative agency, the Group is now also discontinuing its production and development of websites and e-commerce shops. In July 2016, Goldbach sold its Digital Presences business unit based in Biel to Computer Rock AG. In the first semester of 2016, Digital Presences employed about 20 people with revenue in the low one-digit millions. Marketing Services will focus in future on campaign-related services in the areas of performance marketing, search marketing and social media. These services are being offered to direct clients in Switzerland, Germany and Austria by a significantly leaner organisation and they comprise a key component of the Goldbach Group portfolio.

Earnings and cash flow The net result increased by 57% to CHF 3.7 million in the first semester of 2016. This clear increase was partly due to consistent cost management as well as the good operating result and the income from the sale of the subsidiaries in Poland. Overhead costs were reduced by over CHF 1 million against the prior year in the first semester 2016. Operative cash-flow was CHF 8.4 million, which was CHF 12.7 million higher than the prior year.

Outlook Based on the current outlook and due to the consistent implementation of the initiated measures, the Goldbach Group anticipates its positive financial development to continue through the second half of the year. The Group is standing by its financial goals for 2016 and expects organic revenue growth in the one-digit percent range from continuing operations and an improvement of EBITDA operative profitability in the two-digit percentage range. The net result attributable to shareholders should increase to CHF 8-10 million in 2016.

Change in the Executive Committee of the Goldbach Group The Goldbach Group and CMO Klaus Nadler have agreed to end his employment relationship at the end of the year 2016. Klaus Nadler joined the company on 1 March 2014, and held the role of Chief Marketing Officers (CMO). Over the past year he also implemented the restructuring of Goldbach Interactive (Switzerland) AG, and at the same time worked from the onset on the development of Goldbach Germany. Klaus Nadler plans to take on new challenges and projects in future and will continue to work with Goldbach in an advisory capacity. The Board of Directors and Executive Committee would like to take this opportunity to thank Klaus Nadler for his work and wish him all the best for the future. CEO Michi Frank will take on responsibility for Nadler's tasks in the Executive Committee.

Note to analysts, investors and media representatives Goldbach Group AG will hold a teleconference today at 9:30 am to summarise its results for the first half of 2016. Registrations possible until 08.30 am. More information is available from: vera.tschan@goldbachgroup.com.

The presentation and Goldbach Group AG's 2016 interim report can be downloaded from our website: http://www.goldbachgroup.com/en-us/investor-relations/financial-reports/ interim-report-2016

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Further information: Investor Relations Goldbach Group AG Lukas Leuenberger CFO T +41 (44) 914 92 07 Lukas.leuenberger@goldbachgroup.com www.goldbachgroup.com

Corporate Communication Goldbach Group AG Jürg Bachmann Head of Communication & Marketing/Public Affairs M +41 79 600 32 62 juerg.bachmann@goldbachgroup.com www.goldbachgroup.com

Goldbach Group Company Profile The Goldbach Group companies market and represent advertising in private electronic media in the areas of television, radio, digital-out-of-home, online, search engine and mobile marketing. As an independent aggregator, Goldbach offers its clients advertising windows where selected target groups receive commercial information at the right time irrespective of their location. The Group's core business comprises planning, consulting, creation, concept development, purchasing and implementation through to assessment of the deployment of electronic offline and online media and cross-media campaigns based on data-driven technologies.

The Goldbach Group is listed on the SIX Swiss Exchange (Swiss Reporting Standard, security number 487094, ISIN CH0004870942, ticker symbol: GBMN), is based in Switzerland (Küsnacht-Zurich) and is active in German-speaking countries.

Further information: http://www.goldbachgroup.com/en-us/investor-relations/financial-reports http://www.goldbachgroup.com/en-us/investor-relations/ad-hoc-press-releases

End of ad hoc announcement Additional features:

Picture: http://newsfeed2.eqs.com/goldbachgroup/495263.html Subtitle: Kennzahlen Halbjahresbericht 2016 Goldbach Group

Document: http://n.eqs.com/c/fncls.ssp?u=DAMTDJKEJB Document title: Press Release Interim Report 2016 Goldbach Group

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24.08.2016 News transmitted by Tensid EQS AG. www.eqs.com

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Language: English Company: Goldbach Group AG Seestrasse 39 8700 Küsnacht-Zürich Switzerland Phone: +41 44 914 91 00 Fax: +41 44 914 93 60 E-mail: info@goldbachgroup.com Internet: www.goldbachgroup.com ISIN: CH0004870942 Valor: 487094 Listed: Foreign Exchange(s) SIX End of News EQS Group News Service ---------------------------------------------------------------------------

495263 24.08.2016