EQS-Adhoc: Goldbach Group AG: Half Year Result 2015

EQS Group-Ad-hoc: Goldbach Group AG / Key word(s): Half Year Results Goldbach Group AG: Half Year Result 2015

2015-08-21 / 07:00 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement.

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Ad hoc press release

Half Year Result 2015: Goldbach Group: Strategic measures are having an effect

Revenue grows by 4.5% to CHF 227 million and net profit rises to CHF 2.4 million - Core business Ad Sales Switzerland resists economic cooldown - Radio business continues to improve - Plans to expand in Germany - Changes to composition of Board of Directors - Substantial improvement in net profit expected for 2015 as a whole

Küsnacht-Zurich/Switzerland, 21 August 2015. SIX Swiss Exchange-listed leading marketing services provider Goldbach Group reported encouraging progress for the first half of 2015. The measures for concentrating and streamlining the portfolio, which were introduced in 2014 as a result of the strategy analysis, are beginning to take effect and are reflected in the results for the first half of 2015. Despite the challenging environment, revenue increased by 4.5% to CHF 226.8 million. Profitability also improved due to the withdrawal from individual markets in Eastern Europe and despite the expansion costs for the German market. Operating profit before depreciation and amortization (EBITDA) increased by 5.9% to CHF 11.9 million and operating profit (EBIT) rose by 9.2% to CHF 10.7 million. The net profit attributable to shareholders of Goldbach Group for the first half of 2015 stands at CHF 2.4 million, in comparison to the previous figure of CHF 1.3 million (+75%).

Development of net revenue and earnings In an environment characterized by declining advertising markets, Goldbach Group's net revenue rose by an encouraging 4.5% to CHF 226.8 million in the first half of 2015, continuing the stabilization of core business that began to take hold in the second half of 2014. Adjusted for negative currency effects (euro, zloty) and the withdrawal from the Russian, Romanian and Adriatic markets, the increase in revenue amounted to 7.0%.

The Ad Sales Switzerland segment, which generate the majority of the Group's revenue, could increase its revenue by 8.5% to CHF 197.8 million. This positive development was due in particular to high single-digit growth in the TV business. In addition, we are marketing the new Swiss advertising window of the French TV station D8 since June 2015. With a growth of 26%, the Radio business also performed well in the first half of 2015. The measures introduced in early of 2014 to increase the attractiveness of radio as a medium are starting to have an effect. The Online business, however, remains challenging. Low single-digit growth in the Video business was not enough to compensate for the lower revenue in the Display business.

The Ad Sales Other segment performed solidly in the Austrian and Polish markets during the first half of 2015. Due to divestments and currency factors, the net revenue figure of CHF 9.6 million is lower by CHF 2.8 million than in the previous year.

The Ad Sales Germany segment, which is currently under expansion, generated a net revenue of CHF 1.4 million for the first time. Seventeen (mostly small) stations were under contract as of August. The Group is hoping to expand these activities substantially by the end of the year.

The direct customer business Marketing Services had to absorb a loss of -22.2% in the first half of the year, falling to CHF 19.1 million. This decline in revenue is due primarily to the agency business in Switzerland. Goldbach Interactive is now under new management. As immediate measures, the sales structures have been strengthened, a strategic partnership has been entered into with the creative agency Matter Gretener Lesch, and the cost basis has been reduced substantially. The Group is confident of further development in this area.

Gross profit in the first half of 2015 stood at CHF 43.5 million, with a gross margin of 19.2%. The gross margin in the Ad Sales segment is stable. The slight decrease of one percentage point in the overall gross margin compared to the previous year is due to the revenue mix.

Despite costs of CHF 2.1 million associated with market expansion in Germany, EBITDA increased by 5.9% to CHF 11.9 million. The resulting EBITDA margin of 5.2% at Group level remained stable. With an EBITDA contribution of CHF 17.6 million, the Ad Sales Switzerland segment continues to be the Goldbach Group's main source of earnings. Due to economies of scale and strict cost control, the EBITDA margin in the Ad Sales Switzerland segment increased from 8.0% to 8.9%. In the Ad Sales Other segment, the streamlining of business activities is starting to bear fruit. After a loss of CHF -0.6 million in the same period last year, the segment broke even in the first half of 2015. The Marketing Services segment responded immediately to the loss recorded in the first half of the year. However, the measures introduced were not quite enough to break even at EBITDA level, where a loss of CHF -0.6 million was recorded.

The Group's operating profit (EBIT) increased by CHF 0.9 million to CHF 10.7 million, representing an increase of 9.2%.

Net result, equity ratio, cash flow In the first half of 2015, Goldbach Group generated an extraordinary result of CHF 0.7 million, compared to CHF -0.1 million in the previous year. This development was primarily due to the withdrawal from the Adriatic market region. After taxes and minority interests, the net result attributable to the shareholders of Goldbach Group for the first half of 2015 stands at CHF 2.4 million, compared to CHF 1.3 million in the first half of the previous year. For seasonal reasons, operating cash flow was low in the reporting period, coming in at CHF -4.4 million. The equity ratio as of 30 June 2015 stood at 20.1% (31 December 2014: 21.2%).

Changes to the shareholder structure and Board of Directors At the General Meeting on 14 April 2015, the Board of Directors was reinforced with Mirjana Blume and Dr Erica Dubach Spiegler, who replace the retiring Ronald Sauser and Peter A. Blum. In addition, Valentin Chapero was appointed to the Board of Directors as Michael Scheeren's successor at an extraordinary General Meeting on 25 June 2015. Valentin Chapero is one of a co-founders of Veraison Capital AG, which acquired around 15% of the shares in the Group previously held by United Internet Beteiligungen GmbH Deutschland.

Outlook In light of the current situation and the consistent implementation of the new measures, the Goldbach Group is expecting the positive development seen in the first half of the year to continue in the second half, with lower single-digit revenue growth forecast for ongoing business. Due to the improved profitability of the core business and the absence of one-off effects, the Group is expecting net result attributable to shareholders of Goldbach Group AG to be at least twice as high as in the previous year, despite the expansion costs in the German market.

Note to analysts, investors and media representatives Goldbach Group AG will conduct a teleconference today at 9:30 am to summarize its results for the first half of 2015. Join us at +41225805970 and enter pin code 73135806#. More information is available from monika.heiniger@goldbachgroup.com.

The presentation and Goldbach Group AG's 2015 half-year report can be downloaded from our website: http://www.goldbachgroup.com/investor-relations-en/annual-reports/half-ye ar-report-2015

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

Corporate Communication: Goldbach Group AG Jürg Bachmann Communication & Marketing T +41 (44) 914 91 14 juerg.bachmann@goldbachgroup.com

Goldbach Group Company Profile The Goldbach Group is the leading network for electronic communication solutions and a logistics centre for the marketing and representation of advertising in private electronic media in the areas of television, internet television, radio, digital out of home, online display, in-game, search advertising and mobile advertising. The company is based in Switzerland (Kusnacht-Zurich) and is active in the whole DACH region (Switzerland, Germany, Austria) and in Poland. 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. The Goldbach Group has been quoted on the SIX Swiss Exchange since 15 June 2007 (Swiss Reporting Standard, security number 487094, ISIN CH0004870942, ticker symbol GBMN). Further information: www.goldbachgroup.com

End of ad hoc announcement

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Document: http://n.equitystory.com/c/fncls.ssp?u=DMGOAISUJA Document title: Goldbach Group AG / Half Year Result 2015 / Key figures

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2015-08-21 News transmitted by EQS Schweiz AG. www.eqs.com - news archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.

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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 =-------------------------------------------------------------------- 388455 2015-08-21 (END) Dow Jones Newswires

   August 21, 2015 01:00 ET (05:00 GMT)- - 01 00 AM EDT 08-21-15