30.11.2023 06:31:02 - dpa-AFX: EQS-Adhoc: Strategy event covering the development of20 Minuten, Tamedia and Goldbach (english)

Strategy event covering the development of20 Minuten, Tamedia and Goldbach

TX Group / Key word(s): Strategic Company Decision
Strategy event covering the development of 20 Minuten, Tamedia and Goldbach

30-Nov-2023 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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Today's strategy day for institutional investors and analysts will explain
the development of the media and advertising market and the objectives for
20 Minuten, Tamedia and Goldbach.

The media industry is currently undergoing a profound structural change,
which also impacts the TX Group companies 20 Minuten, Tamedia and Goldbach.
Cultivating the high quality and continuous improvement of their offerings
and adapting their structures and cost base to the realities of the media
and advertising business will enable the companies in the Group to achieve
sustainable development in the medium term.

Competitive margins are a prerequisite for ensuring the long-term existence
of companies. They allow companies to overcome economic fluctuations and to
invest in the future. The context is different for every company. The ranges
for medium-term margin targets were derived on the basis of the development
of comparable companies in the domestic and international markets, the
market position and the planned development paths.

Segment/ Business Unit Target 2026

                               EBIT adj.* margin
     20 Minuten                14-16 %
     Tamedia                   8-10 %
     Goldbach (without OOH)    18-22 %
     Goldbach Neo (OOH)**      12-14 %

*EBIT adj. is defined as normalized operating income before depreciation and
amortization out of mergers and acquisitions and not equal to EAT (earnings
after tax). The TX Group's distribution policy is based on free cash flow.
Normally, 35 to 45% of free cash flow before mergers and acquisitions and
after dividends to minorities and repayment of lease liabilities is
distributed. **Separate margin target due to the recent acquisition of Clear
Channel Switzerland.

20 Minuten is an advertising-funded media service in Switzerland, Austria
and Luxembourg. 20 Minuten is the clear market leader in Switzerland, with
around 4.6 million visits to the 20 Minuten Group's digital platforms every
day. The shift in media consumption from printed newspapers to digital
platforms and on to social media is a complex challenge: digital advertising
revenues from Switzerland are largely absorbed by the global tech giants. In
addition, the digital offering of the SRG, which is subsidized by public
broadcasting fees, has developed into a direct competitor. Strict cost
management is necessary in order to maintain an economically sustainable
basis and enable investment in innovation. Innovations in journalism, in the
digital product and in advertising products are the basis to further expand
reach and provide an attractive advertising offering.

Tamedia stands for a diverse portfolio of traditional media brands in both
German and French-speaking Switzerland and operates three newspaper printing
plants. The business model is based on subscription revenues. A major
challenge and priority is to offset the structural decline in printed
newspapers with new digital offerings. This also applies to the second
revenue stream generated by the advertising market. Tamedia is therefore
striving to diversify its revenue sources. Investments in new, innovative
growth areas are necessary for this purpose. As part of the transformation
process, all segments are continuously evaluated. In particular, declining
segments are reviewed for sustainability in the course of restructuring
initiatives.

Goldbach is the leading Swiss advertising marketer and reaches more than 85%
of the population. In recent years, advertising on the traditional channels
of TV, radio and print has declined, while new digital channels have
established themselves. The international tech groups are also strong
competitors in the digital advertising market in Switzerland. In order to
create a healthy business base, Goldbach is focusing on a strict cost
discipline, in addition to investing in growth areas. Goldbach has
consolidated the television advertising market: Starting in 2024, it will
market the entire inventory of all private TV stations in Switzerland. It
will also develop an innovative product in the form of replay ads. The
customer base is additionally being strengthened through a targeted
marketing expansion aimed at SMEs.

Goldbach Neo is a leading provider of out-of-home advertising in Switzerland
and has around 25,000 advertising spaces. In contrast to other types of
advertising, this market is growing. Out-of-home advertising is also going
digital, whereby the growing market share of the digital out-of-home
advertising business is mainly based on incremental growth and not on the
cannibalization of the traditional business. Thanks to synergy effects and
economies of scale from the integration of Clear Channel Switzerland and Neo
Advertising this year, Goldbach Neo will achieve a margin increase in the
medium term.

Contact
Ursula Nötzli, Chief Communications & Sustainability Officer, Member of the
Group Executive Board, +41 76 462 52 45, ursula.noetzli@tx.group

About TX Group
The TX Group forms a network of platforms and participations that offers
users information, orientation, entertainment and assistance for everyday
life on a daily basis. Its roots lie in journalism with the diverse
newspapers of Tamedia and the free media of 20 Minuten. The portfolio is
complemented by the advertising marketer Goldbach. The TX Group is an anchor
shareholder of the SMG Swiss Marketplace Group and JobCloud, holds majority
stakes in Doodle and Zattoo and is an investor in the fintech sector through
TX Ventures. Founded in 1893, the company has been listed on the Swiss stock
exchange since 2000.
www.tx.group


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End of Inside Information

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   Language:       English
   Company:        TX Group
                   Werdstrasse 21
                   8021 Zürich
                   Switzerland
   Internet:       www.tx.group
   ISIN:           CH0011178255
   Valor:          1117825
   Listed:         SIX Swiss Exchange
   EQS News ID:    1784953




End of Announcement EQS News Service
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1784953 30-Nov-2023 CET/CEST

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