NZZ Reports Growth in Digital Sector and Improved Operating Profit

The NZZ media group has demonstrated significant progress in its digital operations, culminating in a rise in its operating profit for the year 2024. The adjusted operating profit increased due to growth in user subscriptions, strategic investments, and effective cost management.

In 2024, NZZ generated a total revenue of 248.3 million Swiss francs, reflecting a slight decline of 1% compared to the previous year. This decrease is primarily attributed to lower invoicing in the context of the IT separation from CH Media. However, the company successfully offset this decline in advertising revenue by enhancing its user market performance.

The revenue from the user market reached 114.9 million francs, representing a 2% increase from the previous year. Despite a drop in print subscriptions, the overall number of subscribers remained stable at 212,600, up from 211,100.

Key drivers of this user market growth included the expansion of digital product offerings and a significant enhancement of the premium subscription service, NZZ Pro, which led to a 9% increase in average revenue per digital subscriber in Switzerland. Additionally, the strong growth trend continued in Germany, where revenue rose by 11%, primarily due to the increasing number of digital subscribers.

Conversely, advertising revenue amounted to 103.4 million francs, marking a 2% decline from the previous year, largely due to decreased print advertising income. However, the share of digital advertising revenue in comparison to print continued to grow.

Despite facing inflationary pressures and the full acquisition of The Market, NZZ managed to reduce its operational costs before depreciation by 0.2 million francs, totaling 232.9 million francs. This, combined with the contribution from its 25% strategic stake in the out-of-home media company APG|SGA acquired in June 2024, resulted in an adjusted operating profit of 16.6 million francs, an increase of 11%. After accounting for financial results and taxes, the company reported a net profit of 14.8 million francs.

As part of its commitment to journalism, the Board of Directors has proposed to maintain the annual dividend at 200 francs per share, consistent with the previous year. NZZ aims to pursue organic growth by strategically investing in its core publishing business, both in its home market of Switzerland and the growing market in Germany. The investment in APG|SGA marks a key milestone in the implementation of its strategic vision.

The ongoing transition from print to digital media continues to evolve in both the user and advertising markets. NZZ is well-positioned for future challenges with its clear strategy and strong balance sheet. CEO Felix Graf emphasized that the positive financial outcome for 2024 reinforces their strategy, as an increasing number of customers are willing to pay for their form of journalism in the digital landscape, not only in Switzerland but also increasingly in Germany.