TX Group (TXGN) H2 2024 earnings summary

Executive summary

• Group structure simplified into Media (Tamedia, 20 Minuten, Goldbach, Group Services) and Portfolio (Swiss Marketplace Group, JobCloud, real estate, Zattoo, Doodle, fintech fund).

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

• Stock price performance positive, partly due to anticipated IPO of Swiss Marketplace Group.

• Financial results for 2024 are mixed and below ambitions, with profitability challenges in media and positive developments in the portfolio.

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

Financial highlights

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

• Free cash flow before M&A rose to CHF 232.2 mn, with cash and cash equivalents increasing by over CHF 90 mn to CHF 380.3 mn.

• Operating cash flow improved significantly, driven by an extraordinary CHF 71 mn dividend from SMG.

• 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).

• Earnings after tax fell considerably year-over-year due to lower revenue and high one-off costs.

Outlook and guidance

• Media segment to focus on executing restructurings and shifting toward digital and growth strategies in 2025.

• No decision yet on timing for SMG IPO; company expected to be IPO-ready by 2026, pending market conditions.

• SMG aims for mid-double-digit million CHF cost savings by 2026 to reinvest in growth and innovation.

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

• JobCloud and karriere.at expected to maintain strong margins but face continued market uncertainty in 2025.