Associates/joint ventures

in CHF 000		2020		2019
Share of net income / (loss) of associates / joint ventures		4 796		16 466
Equity share in associates / joint ventures		61 179		65 897

The share of net income (loss) of associated companies and joint ventures for the 2020 reporting year amounts to CHF 4.8 million, which is down CHF 11.7 million on the previous year. This decline reflects the very challenging economic environment in 2020, which – not unlike the financial performance of TX Group – meant the associated companies and joint ventures also experienced a big reduction in operating income.

Impairment testing for the carrying amounts recorded for investments also found that impairment was needed on the goodwill recorded for Zürcher Oberland Medien AG, based on a DCF valuation, in the amount of CHF 1.0 million, which had a negative impact on the share of the net income for associates and joint ventures for 2020. In addition, the valuation of an investment in the associated company Karriere.at GmbH was no longer deemed reliable (based on a DCF valuation), so Karriere.at GmbH recorded an impairment on this investment accordingly. This impairment reduces the share of net income of Karriere.at GmbH by around CHF 1.9 million.

The decline in the shares of net income recorded in the income statement is also reflected in the equity share in associates and joint ventures, which decreased by a net CHF 4.7 million to CHF 61.2 million.

Share of net assets and income in associates/joint ventures

Detailed financial information on the individual companies deemed to be material associated companies is provided below. The reported amounts refer to the 100 per cent stake in the companies and include the fair value adjustments at the time of acquisition as well as any deviations caused by differences in application of accounting policies. The income statements include in particular the depreciation and amortisation to be recognised by the TX Group on the intangible assets owned at the takeover date. The figures for associates and joint ventures may be based on provisional and unaudited figures, so the tables below may contain some adjustments to the final figures from the previous year.

in CHF 000	2020¹	2019¹
Name	Karriere.at GmbH	Karriere.at GmbH
Share of Group capital	24.5%	24.5%

Balance sheet
Current assets	20 352	30 658
Non-current assets	36 753	35 003
Total assets	57 105	65 662
Current liabilities	17 778	17 895
Non-current liabilities	–	–
Total equity	39 328	47 767
of which attributable to TX Group	13 489	16 384
Liabilities and shareholders' equity	57 105	65 662

Income Statement
Revenues	47 750	52 762
Income / (loss) before taxes	21 098	35 733
Income taxes	(5 217)	(8 300)
Net income / (loss)	15 880	27 433
Other comprehensive income / (loss)	–	–
Total comprehensive income / (loss)	15 880	27 433
of which attributable to TX Group	5 037	9 410
Dividends received (pro-rata)	7 989	8 217

1 Karriere.at GmbH is a 49 per cent stake of JobCloud AG in which TX Group holds a 50 per cent interest. Based on the current agreements, TX Group expects JobCloud AG to have a 34.3 per cent net income claim against Karriere.at GmbH for the 2020 reporting year. From the 2021 reporting year, the net income claim will be 49 per cent.

As of the end of 2020, the other associates and joint ventures are assessed as not material on an individual basis.

The shares of the TX Group in the net assets and income of associates and joint ventures are listed below.

in CHF 000	Karriere.at GmbH	Other associates	Joint ventures	Total

2020
Current assets	6 981	16 982	11 024	34 986
Non-current assets	12 606	45 535	3 992	62 133
Assets	19 587	62 517	15 015	97 120
Current liabilities	6 098	10 123	10 500	26 721
Non-current liabilities	–	8 842	379	9 220
Equity	13 489	43 553	4 137	61 179
Liabilities	19 587	62 517	15 015	97 120

Share of net income (loss) of associates/joint ventures
Revenues	16 378	48 659	12 853	77 891
Income / (loss) before taxes	6 826	(62)	457	7 221
Income taxes	(1 790)	(517)	(118)	(2 425)
Share of net income / (loss) of associates / joint ventures	5 037	(580)	339	4 796
Other comprehensive income / (loss)	–	–	–	–
Total comprehensive income / (loss)	5 037	(580)	339	4 796

in CHF 000	Karriere.at GmbH	Other associates	Joint ventures	Total
2019
Current assets	10 516	18 453	9 177	38 146
Non-current assets	12 006	47 457	2 770	62 233
Assets	22 522	65 910	11 947	100 379
Current liabilities	6 138	11 711	7 560	25 409
Non-current liabilities	–	8 610	463	9 073
Equity	16 384	45 589	3 924	65 897
Liabilities	22 522	65 910	11 947	100 379

Share of net income / (loss) of associates / joint ventures
Revenues	18 097	54 391	15 422	87 910
Income / (loss) before taxes	12 256	7 649	994	20 899
Income taxes	(2 847)	(1 334)	(252)	(4 433)
Share of net income / (loss) of associates / joint ventures	9 410	6 314	742	16 466
Other comprehensive income / (loss)	–	–	–	–
Total comprehensive income / (loss)	9 410	6 314	742	16 466

Associates and joint ventures are accounted for using the equity method. A distinction is made between joint ventures and joint operations when assessing joint arrangement companies. These companies are deemed to be joint ventures because, in all cases and on the basis of contractual agreements, TX Group exercises control over financial and operational decisions together with partners and holds rights to the company’s net assets.

Except for Virtual Network SA (30 June), all of the associates and joint ventures have a balance sheet date of 31 December under commercial law. As none of the associates and joint ventures have shares that are publicly traded, there are no published share prices. As most of the associates and joint ventures do not apply IFRS, their available financial statements have been adjusted to reflect IFRS principles, requiring estimates to be made in some cases. Adjustments may be necessary in the coming years if new information becomes available.

Details on transactions with associates and joint ventures are disclosed in Note 38.