Segment reporting reflects the corporate structure and is in line with internal reporting. The accounting policies described also apply to segment reporting, whereas employee benefit expense from IAS 19 is shown separately, together with the eliminations. The revenues, expenses and net income of the various segments include offsetting between the companies. Such offsetting is carried out on an armʼs length basis.

The following measurement principles apply to the recognition of revenues In accordance with IFRS 15:

• Revenues are realised if TX Group has satisfied its performance obligation and control of the asset has been transferred to the purchaser or the services have been rendered.
• In the case of activities where the power of disposal does not lie with TX Group or sums are collected on behalf of third parties, the revenues at the time of the brokerage activity are only shown in the amount of the relevant commission or the share of the revenues to which the Group is entitled. In these cases, TX Group commissioned a third party to render the service and acted as broker between supply and demand.
• Revenues are stated net of sales deductions and VAT. Bad debt losses are recognised in other operating expenses. Variable considerations (for example refunded media revenue) are usually limited and are estimated based on the contractual agreement and on anticipated figures and internal forecasts. The non-cash exchange of the same services between companies in the same business segment (one example being the non-cash exchange of adverts between media companies) is defined as a “barter transaction” and recognised net, while revenues and expenditure from other barter transactions which pertain to different services are recognised gross and measured at fair value (“barter transactions”). Any consideration not yet received is accounted for on an accruals basis. Contracts with customers generally stipulate payment terms of 30 days. As the period between service provision and customer payment is generally less than 12 months, the simplified approach in accordance with IFRS 15 can be applied, and financing components do not need to be considered. There are no take-back or refund obligations or other similar obligations or guarantees.
• Revenues from contracts with multiple performance obligations (multi-component contracts) are allocated based on the standalone selling price for the respective performance obligation. If no standalone selling prices are available, revenues are allocated using allocation formulae which reflect the best possible estimate of the standalone selling prices.
• TX Group usually has few assets from contracts with customers since most of its services have either already been invoiced or not yet rendered. In particular, no account is taken of contractual assets from work in progress which does not yet give rise to an unconditional right to receive the consideration due to open performance obligations. Costs arising in connection with the initiation or performance of a contract with the customer are capitalised if the costs can be directly attributed to the conclusion of the contract and if the costs (direct costs above the contractual reimbursement or indirect costs above a contractually stipulated margin) can be generated again. TX Group does not have any material capitalised costs in connection with the initiation or performance of a contract with customers. If the customer has already furnished the consideration before the goods or service is/are transferred, the contract is reported as a contract liability.
• TX Group breaks down revenues in the income statement according to its core competencies with regard to the type of service and goods: advertising revenue; classifieds & services revenue; commercialisation revenue; subscriptions & single sales revenue; printing & logistics revenue; other operating revenue, and other income. Segment reporting is structured in line with the market-specific business segments reported internally.
• Advertising revenue covers: proceeds from the sale of commercial advertising space (for example commercial advertisements) in newspapers and magazines; advertising revenue within the digital business model known as display affiliate marketing; and proceeds from radio advertising and social media. Advertising revenue also includes revenues from the sale of outdoor advertising spaces if TX Group bears the inventory risk for these advertising spaces or is responsible for providing the service. In these cases, revenues from the sale of outdoor advertising space are recognised gross, as are direct expenses for the space. Proceeds from the advertising market generated through the sale of individual advertisements are realised on the date of publication or, in the digital area, after the actual delivery of the advertisement.
• Classifieds & services revenue includes proceeds from the sale of classified advertising, revenues from service subscriptions from TX Ventures companies, and editorial & publishing services. The proceeds from the sale of classified advertising are recognised over the contractually defined period associated with the provision of the advertising space or advert. Classifieds & services revenue also covers proceeds from the sale of marketing services (strategy, consultancy, design and implementation of advertising campaigns), digital applications, and formats.
• Commercialisation revenue mainly comprises proceeds from the marketing and brokerage of advertising in TV, radio, and display/video segments. Only the brokerage fees due to TX Group are recognised as revenues, as the service is provided by third parties and TX Group merely acts as the intermediary between supply and demand. Revenues from marketing and brokerage activity also include the fee for brokering out-of-home advertising (net revenues) if TX Group does not bear the inventory risk for the outdoor advertising spaces and is not responsible for providing the service. For all areas, the service is provided and the revenues recognised when the advertisement is broadcast/published. On the balance sheet date, media volumes paid but not used by customers are calculated, valued and duly accrued.
• Subscriptions & single sales revenue covers proceeds from the sale of newspapers and magazines to subscribers, retailers and wholesalers. In the case of subscriptions, the service is provided over a period of time (the duration of the subscription). Revenues are therefore recognised over the course of the relevant subscription, which equates to the transfer of the service.
• Printing & logistics revenue includes proceeds from newspaper printing. Proceeds are realised when printed products are delivered and are recognised as revenues at that time.
• Other operating revenue mainly includes revenues from management fees and services, sales of out-of-home technology and digital services, income from buildings used for operational purposes, and other revenue items that would not be material on their own. These include income from the staff restaurant, merchandise revenues, visualisation support for the marketing of property, and the sale of petrol.
• Other income includes income from asset disposals, income from revaluations of previously non-consolidated investments, and other income items that would not be material on their own.