TX Group (TXGN) H2 2024 earnings summary

Executive summary

• Revenue declined 4% year-over-year to CHF 941.5 mn, mainly due to a challenging job and advertising market, with partial offset from the Clear Channel Switzerland acquisition.

• Adjusted EBIT fell 28% to CHF 103.5 mn, impacted by one-off restructuring costs, tax adjustments, and increased provisions.

• Significant restructuring and reorganization occurred across media businesses to restore profitability and focus on core operations.

• Free cash flow before M&A rose to CHF 232.2 mn, and net liquidity increased to CHF 137.1 mn, reflecting strong cash generation and special dividends.

• Portfolio segment, especially Swiss Marketplace Group (SMG), showed strong growth and positive development.

Financial highlights

• EBITDA margin decreased to 13.4% from 17.8% year-over-year, mainly due to non-recurring costs.

• Reported EBIT dropped to CHF 19.0 mn from CHF 71.0 mn; adjusted EBIT at CHF 103.5 mn (vs. CHF 143.6 mn prior year).

• EBITDA was burdened by one-off costs of nearly CHF 60 million, including high restructuring costs and provisions.

• Cash flow from operating activities increased to CHF 266.7 mn, driven by extraordinary dividend from SMG.

• Cash and cash equivalents increased by over CHF 90 million to CHF 380 million.

Outlook and guidance

• Focus on digital transformation, cost management, and portfolio streamlining, including further restructuring at Tamedia and Goldbach.

• SMG aims for mid-double-digit million CHF cost savings by 2026 and is on track for IPO readiness, pending market conditions.

• Tamedia to accelerate digital subscriber growth and close two printing plants within two years.

• Job Cloud and related job classifieds expect ongoing market uncertainty in 2025, but maintain a positive mid-term outlook.