TX Group launches share buyback after sharp first-half earnings drop

Investing.com -- TX Group AG (SIX:TXGN) on Tuesday announced a three-year share buyback program after reporting sharply lower first-half results, with declines across revenue, operating income and net profit.

The Swiss company said it will repurchase a mid-single-digit percentage of its registered shares at market prices. 

Repurchased shares will be cancelled, reducing capital. The program will begin in the coming weeks, according to the company’s half-year report.

Revenue fell 7.5% to CHF 426.6 million from CHF 461 million a year earlier. Operating income before depreciation and amortization dropped 14.7% to CHF 81.8 million. 

Adjusted operating income declined 31.9% to CHF 38.5 million, while net income fell 83% to CHF 4.2 million. 

Adjusted net income decreased 30.8% to CHF 33.5 million. Operating income was CHF 7 million, down 70.3% from CHF 23.5 million.

Segment results showed continued growth in digital platforms but weakness in media operations. 

Swiss Marketplace Group, in which TX Group holds 30.72%, recorded double-digit revenue growth and stronger margins. 

JobCloud, 50% owned by TX Group, maintained solid profitability despite weaker labor markets, particularly in Austria. 

Preparations for a potential Swiss Marketplace Group IPO continued, and the unit paid a CHF 60 million dividend for fiscal 2024 while planning to propose CHF 75 million for 2025.

Goldbach reported revenues of CHF 112.8 million, down 15.8% from a year earlier, with adjusted operating income of CHF 0.7 million after a CHF 4.8 million provision. Revenue from replay ads in time-shifted television more than doubled, while linear TV and radio declined slightly. External advertising remained stable.

20 Minuten posted revenues of CHF 38.8 million, a 21.1% drop from a year ago, and booked a CHF 5 million adjusted operating loss after CHF 5.3 million in restructuring costs tied to the discontinuation of its print edition at the end of 2025. The outlet reported 33% more daily digital visits than its nearest competitor in June.

Tamedia reported revenues of CHF 191.5 million, down 5.8%. Adjusted operating income rose 22.8% to CHF 6.6 million. 

Digital subscriptions increased 3.4% to 193,000 out of a total 611,000 subscriptions. Digital advertising revenue increased 24%, partly offsetting print advertising declines.

In Group & Ventures, revenues fell 5.4% to CHF 75.1 million. Adjusted operating loss narrowed to CHF 6.1 million from CHF 7.7 million. 

TX Ventures invested CHF 60 million across 23 portfolio companies. Doodle delivered results above expectations despite slightly weaker revenue, while Zattoo expanded into new markets through its acquisition of Germany’s Green Streams GmbH.

“The first half of the year was below our expectations. The structural challenges in the media business have further deteriorated in a difficult market environment,” said Chairman and publisher Pietro Supino in a statement.