TX Group (TXGN) H1 2026 earnings summary

Executive summary

• Revenues declined 5.7% year-over-year to CHF 402.4 million, mainly due to structural print market declines and portfolio streamlining, but adjusted EBIT surged 74% to CHF 67.1 million (16.7% margin), driven by cost reductions and higher associate earnings.

• Digital revenue share increased to 60%, with digital advertising particularly strong at 52% of group advertising revenue.

• Transformation and decentralization efforts led to a structurally lower cost base, increased agility, and streamlined leadership, including a new COO.

• Net income (EAT) was CHF -14.6 million, impacted by a CHF 46.4 million goodwill impairment at Goldbach, though adjusted net income was positive.

• Cash flow from operating activities increased to CHF 120.4 million, with net liquidity at CHF 252.9 million and an equity ratio of 76.8%.

Financial highlights

• Adjusted EBIT up 74% year-over-year to CHF 67.1 million; adjusted EBIT margin at 16.7%.

• EBITDA increased by almost 39% to CHF 113.4 million, with margin up to 28.2%.

• Free cash flow before M&A rose to CHF 104.2 million from CHF 82.1 million.

• Net liquidity (excluding leases) at CHF 252.9 million.

• Reported EBIT at -CHF 9.9 million due to a CHF 46.4 million goodwill impairment at Goldbach.

Outlook and guidance

• Continued investment in digital transformation, AI, and product innovation, especially at 20 Minuten and Tamedia.

• Tamedia's adjusted EBIT margin target of 8%-10% now expected over the medium term, beyond 2027.

• 20 Minuten's high H1 margin not expected to persist as investments in digital innovation increase.

• Ongoing share buyback program and increased stake in SMG to support strategic positioning.

• Structural decline in print and linear TV markets expected to continue; digital and Out-of-Home advertising seen as growth areas.