Tamedia in the year 2005
At the beginning of January, the Program Director of Radio 24, Peter Brun decides to leave the station due to differences in opinion on future strategic developments. After 5 ½ successful years at Radio 24 Peter Brun is looking for new professional challenges.
At the end of January, a cooperation with Ziegler Druck is announced: Winterthur-based Ziegler Druck- und Verlags AG will be responsible for printing the Tamedia magazines Annabelle, Das Magazin, Facts and Schweizer Familie, some as of the beginning of the year, some to follow later. In return, the Winterthur daily newspaper Der Landbote will be printed on the new printing presses in Tamedia’s Bubenberg printing facility, starting May 2005.
The cooperation between Tamedia and Ziegler Druck also covers two other areas. For one, subject to the ap-proval of its Board of Directors, the distribution organization ZUVO will handle the delivery of Landbote in the future. Also, as of 1 March, 2005, the job classifieds of the Tages-Anzeiger will be inserted in the Der Landbote twice a week.
Furthermore, Tamedia acquires a 20% investment in Ziegler Druck- und Verlags AG, representing the maximum number of votes allowed according to the articles of association of Ziegler Druck- und Verlags AG. This is intended to ensure Ziegler’s entrepreneurial autonomy and the journalistic independence of the Der Landbote. No jobs are cut.
Also at the end of January, the Tamedia subsidiary Express Zeitung AG acquires the remaining 50.5% of 20 Minuten (Schweiz) AG ahead of time and retroactively as of 1 January, 2005. Previously, Express Zeitung AG held a share of 49.,5%. Martin Kall is the new Chairman of the Board of 20 Minuten (Schweiz) AG. Other mem-bers of the Board are Christoph Tonini, Head of Finances and Services, and Jürg Brauchli who is in charge of the Newspaper Division.
On 23 March, Markus Mager (38) is appointed successor to Peter Brun. Markus Mager will join Radio 24 as Program Director on 1 Ma, 2005. He began his journalistic career in 1993 as a presenter and editor at former Radio Z. After 1998, he held various positions at Tele 24, RTL/Pro 7 (Switzerland) and Sat 1 (Switzerland). In 2002, he was made Deputy Editor-in-Chief of TeleZüri, and in 2004 Mager switched to SonntagsBlick to work as a reporter.
After posting a loss for the previous year, Tamedia reports a return to profit in 2004. The earnings power improved significantly due to a strictly implemented restructuring program. Operating income before deprecia-tion and amortization (EBITDA) climbed from CHF 27.7 to CHF 103.0 million. The EBITDA margin increased from 4.8 to 18.2%. Consolidated net income, to be announced at the end of March, amounted to CHF 49.8 mil-lion. The Board of Directors will propose a dividend payout to the Annual General Meeting of CHF 1.50 per share.
As a result of the decision of the Board of Directors to focus activities on newspapers, magazines, electronic media and services, Tamedia divests itself of Werd Verlag at the end of March. The business is sold to the newly established Werd Verlag AG which is controlled by Bodan AG, Druckerei und Verlag, Kreuzlingen. The Tamedia staff employed in book publishing is taken over by Werd Verlag AG. For the time being, the publishing activities will remain in the same offices which are leased from Tamedia.
At the end of April, Tamedia and its outsourcing partners assume responsibility for finances, IT, subscription service, building management, reception, internal mail, and cleaning services of the publishers of Finanz und Wirtschaft. Equivalent jobs have already been found for half of the 16 employees affected by this. Layoffs are to be avoided if at all possible. Publishing and editorial services continue to be independent and will remain at their current location. Proposals for editorial cost optimization (in the one-digit percentage range) will be worked out by summer. Concurrently, a concept to develop and expand financial publication activities will be designed. After the resignation of Peter Bohnenblust (who was also a member of the Board of Directors) the search for a successor for the editor-in-chief is underway. In the meantime, Peter Schuppli will act as interim editor-in-chief. Managing Director Martin Coninx now reports to the management of the Magazines Division of Tamedia.
Also at the end of April, the launching of 20 Minuten in St. Gallen is announced, which, following Zurich, Basel, Berne and Lucerne, will open up another important market. The editorial and publishing concept will remain fun-damentally unchanged. The new regional edition of 20 Minuten is expected to appear in the summer in a circu-lation of 45,000 copies. Additional journalists will be hired. The paper will be printed in Zurich. After the expan-sion, 20 Minuten will have about 100 permanent employees, more than 50 of whom in the editorial offices.
At the end of April, the 10-percent investment in Anzeiger von Uster is sold to the majority shareholder, Zürcher Oberland Medien AG. This is another step with which Tamedia’s policy of focusing on strategic invest-ments is implemented.
The former Managing Director, Kristian Widmer, and media entrepreneur Thomas Sterchi acquire Tamedia’s 70% share of Condor Communications AG through a management buyout. The remaining 30% continue to be held by the founding family and small investors. Martin Kall and Andreas Meili who represented Tamedia on the Board of Directors will resign as of the general shareholders’ meeting of Condor Communications AG at the end of June 2005.
At the beginning of June, Tagblatt der Stadt Zürich takes over the neighborhood newspaper Die Vorstadt to strengthen its local presence in the 11th and 12th districts of the city of Zurich. Büry-Verlag AG (publisher of Die Vorstadt which appears on Wednesdays in a circulation of 37,000 copies), established in 1957, was owned by Akeret AG, which is controlled by Publigroupe. The four full-time members of the editorial staff will be transferred as of 1 July, 2005. Publicitas continues to be responsible for advertising.
On 13 June, 20 Minuten St. Gallen appears in a circulation of 40,000 copies. The Swiss Federal Railways, Südostbahn and Appenzeller Bahnen grant 20 Minuten permission to place 150 newspaper dispensers in 60 stations. The commuter paper is additionally available in various companies, restaurants and – during the start-up phase – in post offices.
At the end of June, Victor Breu (48) is appointed Editor-in-Chief of Finanz und Wirtschaft. The experienced political and financial journalist, who has been deputy editor-in-chief of HandelsZeitung since May 2004, is returning to Tamedia. The effective date of his return has yet to be decided. Together with Peter Schuppli, deputy editor-in-chief, Victor Breu will build up the strengths of Finanz und Wirtschaft as a quality newspaper in the investment field. Related publishing activities are also expected to be intensified.
Effective 1 July, 2005 car4you (Schweiz) AG takes over car4you-Zeitung, a paper for the pre-owned vehicle market, which was launched together with Tamedia in October 2004. Publication dates and content will not be changed in the foreseeable future. Tamedia will continue to be responsible for pre-print, print and distribution on a contract basis. As a result of the sale, three jobs in the Tamedia automotive market were cut. The employees are covered under the social compensation plan.
Due to the investment in homegate.ch, the expansion of jobwinner.ch and the integration of 20 Minuten and Finanz und Wirtschaft into the organizational structure of Tamedia, online activities are decentralized as of the beginning of July. The online presence of the Tamedia publications which was previously under central management is now under the individual control of each editorial office. Closer product ties are expected to enhance potential cross-selling opportunities, especially in the advertising market. The former Online Manager, Marcel Sennhauser, will devote his efforts to strategic projects and continue to report directly to Andreas Meili. The purpose of the newly established task force Neue Medien is to ensure the transfer of know-how across all groups.
Declining order volumes and the process optimization at Tela are expected to improve the utilization rates of the Customer Contact Center. For this purpose, all telephony activities are combined at Baslerstrasse at the end of August. The Tela team and all employees of Werdstrasse telephony are integrated into the Customer Contact Center and report to Beatrice Schwinn, Head of the Contact Center. Eight jobs were eliminated as a result of the reorganization. The twelve employees who are affected by this receive supplementary benefits according to the existing social com-pensation plan.
Organizational adjustments are also made in the print center: Effective 2006, Stefan Abbt will be responsible for rotation and plate production, while Roger Mischol will take over the management of shipping.
On 23 August, his 60th birthday, Hans Heinrich Coninx, Chairman of the Board and Head Publisher, announces that he will step down as of the 2007 General Shareholders’ Meeting. At the same time, Pietro Supino will be proposed as his successor. The top leadership position of Tamedia will remain in the hands of a member of the three branches of the family who are holding a combined total of 76 percent of the Tamedia shares. This step emphasizes the intent to carry on the 112-year family tradition.
New Print & Logistics Division and new responsibilities in the publication of Tages-Anzeiger and the executive management of 20 Minuten: The restructuring underscores the growing importance of the print center and the focus on upcoming significant projects of Tamedia. Jürg Brauchli will be at the helm of the newly established Print & Logistics Division. Martin Kall is now responsible for the Newspaper Division. Rolf Bollmann, who successfully launched 20 Minuten and turned it into the newspaper with the highest readership in German-speaking Switzerland, is making his extensive experience in the regional newspaper market available to Tages-Anzeiger (he is the former Managing Director of Badener Tagblatt and later of Aargauer Zeitung), where he will succeed the current Managing Director, Maili A. Wolf, effective 1 February, 2006. He was also elected to the Board of Directors of 20 Minuten AG. At the same time, Marcel Koller, Director of NZZ Media (a subsidiary of Publicitas AG), will take over the management of 20 Minuten AG.
On 26 August, Tamedia announces its semi-annual results: Following a successful 2004 fiscal year, operating income (sales) increased again in the first six months of 2005 by 14.3 percent to CHF 321.0 million. EBITDA rose at an above average rate to CHF 62.1 million (+42.6%) pushing the EBITDA margin up to 19.4 percent (2004: 15.5%). As of the end of June 2005, Tamedia reports consolidated net income of CHF 41.8 million (2004: CHF 17.9 million).
Richi Gasser, Head of the Radio Advertising Market, is leaving Tamedia at the end of August 2005 to accept new professional challenges.
Tamedia acquires the majority of Huber & Co. AG. In a first step Tamedia is taking over approximately 75 per-cent of the shares of this prominent Thurgau-based company. After the closing in October 2005, Tamedia purchases the remaining shares, which ensures Thurgauer Zeitung’s independence in the long term. Until the end of 2005, Tamedia and Huber are looking into cooperation and synergy potentials to further boost the earnings of both companies. Efforts are made to combine the advertising of Der Landbote, Thurgauer Zeitung and Tages-Anzeiger.
At the end of September, a job cut in newspaper advertising production is announced due to the fact that orders have been declining since 2003. Within the department, the main issue of the Tages-Anzeiger has been affected most by this (2004: -17,000 orders compared to the previous year; 1-8/2005: -20,000 orders compared to the same period in the prior year). Therefore, the elimination of nine full-time jobs is unavoidable. The eleven employees who are affected by the cut are eligible for supplementary benefits under the existing social com-pensation plan.
On 5 October, Tarkan Özküp was named Head of Marketing and Sales at Radio 24 and TeleZüri. He has been responsible for sales at TeleZüri since the fall of 2002 and was instrumental in the positive economic development of the most successful regional TV station. Effective immediately, he will hold the same position at Radio 24, where he will be supported by a deputy to be named. This dual function is intended to utilize back-office synergies.
In mid-October, Das Magazin announced that it will publish its own series of books. On 9 December, the first five books of a 20-volume series on Swiss literature in the 20th century, including «Matto regiert» by Friedrich Glauser and «Bis bald» by Markus Werner, will be available in bookstores. They are sold individually at an attractive price in stores or as a complete package directly through the Das Magazin publications, other Tamedia titles and the book trade.
Tamedia launched piazza.ch, a market place for new and used goods, on 20 October. piazza.ch offers corporate customers and private individuals the opportunity to advertise new and used goods quickly and easily in the Internet. The site is intended to be a pleasant and innovative publication for small classified ads in German-speaking Switzerland. piazza.ch acts as intermediary between buyers and sellers. Unlike auction platforms, no sales commissions are charged. Classifieds are free of charge during the introductory phase. The site enhances Tamedia’s range of online platforms, which includes homegate.ch, jobwinner.ch and partnerwinner.ch. The operator, Piazza AG, is part of the Electronic Media Division.
On 24 October, the Board of Directors approved the launching of 20 minutes in the French-speaking part of Switzerland in the spring of 2006. This is the first daily newspaper to cross the language borders and covers the major business centers in Switzerland. It targets a young, urban audience with high spending power. The paper with a circulation of 120,000 copies will be distributed through the usual channels in Lausanne and Geneva. 20 minutes will be produced by an editorial staff of approximately 30 and 10 employees in the publishing department. During the start-up phase, Markus Eisenhut, the former editor-in-chief of 20 Minuten, will be in charge of project management.
In connection with the establishment of a fifth division (Printing & Logistics), the controlling responsibilities within the departments will be reassigned as of the end of October.
The acquisition of Huber & Co. AG, the planned regionalization of Tages-Anzeiger and the expansion of 20 Minuten into French-speaking Switzerland required an adjustment in Tamedia’s operational management as of mid-November. Rolf Bollmann, Head of the Newspapers Zurich Division, is now responsible for Tages-Anzeiger, Tagblatt der Stadt Zürich, Uster Nachrichten as well as job classifieds, and the real estate and automotive markets. Editorial and publishing offices of Tages-Anzeiger report directly to Bollmann; for journalistic purposes, the editor-in-chief’s office of Tages-Anzeiger will continue to report to the publisher. In addition to his current responsibilities, Christoph Tonini is now also in charge of the Newspapers Division Switzerland, which consists of 20 Minuten, Huber & Co. AG, SonntagsZeitung and the holdings in Berner Zeitung, Der Landbote and Homegate. The reader market, as a central service for newspapers and magazines, will be integrated into Finance and Services. These organizational measures have no effect on external accounting.
Andreas Durisch is replacing Stefan Barmettler as Editor-in-Chief of Facts and therefore, he now has journalistic responsibility for two Tamedia publications. He will reduce his workload at SonntagsZeitung and rely on the operational support of Deputy Editors-in-Chief Armin Müller and Ueli Walther.
On 21 November, the launching of «tagiplus» was announced: three publications – one media product. As of the beginning of 2006, Tages-Anzeiger, Der Landbote and Thurgauer Zeitung will introduce «tagiplus», a new advertising package. This product covers economic areas 43 and 44 (Zurich and Thurgau) and reaches 1.5 million active consumers with high spending power. With a circulation of 312,933 issues and 690,000 readers per day it achieves a 43% net coverage in its core region (large print-run: 48.8%). Advertising customers enjoy a discount of 8% for this package. The offer is available through Publicitas Winterthur and the Tages-Anzeiger advertising market, which also acts as clearing office.
An announcement was made on 23 November that SV Group AG will take over the in-house cafeteria at the Bubenberg printing facility as of 1 March, 2006. This move affects 13 employees and 3 apprentices who will be able to complete their training. The employees will be offered continued employment by SV Group. In addition, they are covered by the existing social compensation plan. Cafeteria services are expected to be expanded, in part.
At the same time, as a result of personnel retirement, the Technical Services of the printing facility will take over the responsibility for staffing the reception.
Tamedia and the HandelsZeitung publishing group announced on 25 November that they will reorganize their sales activities in French-speaking Switzerland. Presse Publicité Rep. SA, which was originally established as a 50:50 joint venture, will be acquired by Tamedia as of 1 January, 2006. The employees who are currently responsible for the Tamedia publications will remain with Presse Publicité. The reorganization is part of Tamedia’s expansion into the western part of Switzerland.
On 6 December, Josef Crisci (42), General Manager of the daily newspaper «La Côte» since 1992, was named Managing Director of 20 Minuten Romandie, effective 1 March, 2006.
Tamedia increased its total payroll for 2006 by 1.5 percent. All employees covered by the collective labor agreement of the graphics industry will receive a general salary increase of 1.2 percent which will go into effect as of 1 January, 2006. 0.3 percent will be used for individual salary adjustments, as agreed with the Employee Committee of Tamedia. The responsible members of the Management Board will decide on how the 1.5 percent will be distributed in all other divisions and the fully consolidated subsidiaries. Individual salary increases will take effect 1 April, 2006. Tamedia will announce the amount of the profit sharing bonus (which includes the fully consolidated subsidiaries, except for Huber & Co. AG) at the time the financial statements for 2005 are published.
Philippe Favre (38) was named Editor-in-Chief of 20 minutes on 27 December. He will assume his new responsibilities on 1 March, 2006. Since 1994, he has held a variety of positions at La Presse Riviera/Chablais, most recently Editor-in-Chief of the regional edition of 24 heures Riviera/Chablais and Presse Hebdo Riviera/Chablais.