Net income (EAT)
Reported net income (EAT) for 2021 amounts to CHF 832.7 million, which is CHF 927.3 million above the previous year’s figure of CHF -94.6 million. The net income attributable to TX Group shareholders increased from CHF -112.3 million to CHF 802.0 million.
The financial result for 2021 amounts to CHF 789.6 million (previous year: CHF -20.6 million). As a result of the 100 per cent stake in TX Markets AG (without the investment in JobCloud AG) being integrated into the new SMG Swiss Marketplace Group AG joint venture (and the associated disposal of equity following deconsolidation) and the recognition of the associated investment (41 per cent) at market value, there was a difference in financial income of CHF 778.5 million (see Note 1 “Changes to the group of consolidated companies”). The previous year had recorded a disposal loss of CHF 18.7 on the sale of Olmero AG and Trendsales ApS. Other financial income includes damages from legal proceedings involving Trendsales ApS in the amount of CHF 12.0 million.
The expected average tax rate equals the weighted average of the rates of the consolidated companies. This is 19.5 per cent in 2021 (previous year: 13.4 per cent) and is derived from the weighting for the expected tax rates for each company. Both positive and negative results for the individual companies feed into the calculation for the expected tax rate, taking into account the applicable tax rates in each case, therefore resulting in 2021 in a higher expected tax rate compared with the previous year.
The effective tax rate changed from -3.5 per cent to 2.4 per cent. This was due more than anything to the write-up in value of the TX Group’s shares in the SMG Swiss Marketplace Group AG joint venture, which was reflected in the income statement through the financial result in the amount of CHF 778.5 million. Together with the impact resulting from both book depreciation and amortisation and also write-ups on carrying amounts (without any deferred tax consequences) – and with tax expenses reducing accordingly – other tax effects on investments were considerably higher in 2021 too.
The significant increase in the impact of investment deductions and other non-taxable income is mainly due to the sale of 10 per cent of the shares in SMG Swiss Marketplace Group AG.
In 2020, the non-tax-deductible impairment on goodwill with a theoretical tax effect in the amount of CHF 14.8 million was attributable to the impairment on goodwill of CHF 85.0 million for the Tamedia segment. More information on goodwill and the impairment testing performed can be found in Note 22.