TX Group (TXGN) H1 2024 earnings summary

Executive summary

• Revenues stable at CHF 461.0 million, with organic revenue down 6%–6.3% due to declines in print, job market, and advertising segments; inorganic growth from Goldbach OOH offset declines.

• Adjusted EBIT rose to CHF 56.5 million (+4%), and net income increased to CHF 24.5 million from CHF 13.7 million year-over-year, driven by cost reductions and improved profitability.

• Major restructuring at Tamedia announced, including closure of two printing centers, reduction of 200–300 jobs, and CHF 29.9–30 million in one-off restructuring costs.

• Digital subscriptions at Tamedia grew by 9.7%–10%, and 20 Minuten strengthened its lead in the digital user market.

• New Tamedia strategy focuses on digital transformation, brand consolidation, and operational efficiency.

Financial highlights

• EBITDA increased to CHF 95.8 million (+10.6%–11%), with EBITDA margin at 20.8%.

• Adjusted EBIT margin improved to 12.3% from 11.8% year-over-year.

• Net liquidity near zero or slightly negative (CHF -0.4 million) after dividend payout.

• Free cash flow before M&A was CHF 82.4 million, down from CHF 91.1 million in prior year.

• Net income (EAT) rose to CHF 24.5 million, up 79.4% year-over-year.

Outlook and guidance

• Tamedia's new strategy targets an 8–10% EBIT margin by 2027, with margin targets delayed due to transformation timeline.

• One-off restructuring costs of CHF 29.9 million expected in H2 2024, negatively impacting earnings.

• Focus on digital growth, cost reduction, and organizational transformation to drive sustainable profitability.

• SMG IPO remains a goal, with readiness expected by end of next year, subject to market conditions.