Affichage records slump in profits
Affichage suffered a sharp drop in profits during the first half of the year. Although revenue rose by 38.0 percent to 222.9 million Swiss francs, thanks to acquisitions abroad and strong business related to the European Soccer Championship, profits fell by nearly a quarter.
The outdoor advertising group Affichage suffered a slump in profits in the first half of the year. Sales rose by 38.0 percent to CHF 222.9 million thanks to acquisitions abroad and good business with the European Football Championships. However, profit fell by almost a quarter to CHF 15.1 million. The operating result at EBIT level improved by 3.9 percent to 24.8 million francs, as Affichage announced on Wednesday. However, the corresponding margin fell from 14.8 to 11.1 percent. The operating result before acquisition-related amortization (Ebita) rose by 14.7 percent to 28.5 million francs. One reason for the fall in profit was the increase in amortization of intangible assets, the report continues. This rose from CHF 1.0 million to CHF 3.7 million.
The company posted a loss of CHF 1.0 million for the financial result, following a positive result of CHF 2.86 million in the same period of the previous year. Affichage cites currency losses and increased interest expenses as the reasons for the poor result.
The home market of Switzerland recorded an organic increase in sales revenue of 6.6% to CHF 152.9 million. The company benefited from the European Football Championships and the generally positive market environment.
In international business, turnover rose from 18.1% to 39.4% thanks to acquisitions. This corresponds to 31.4 percent of total Group sales. While the sales trend was particularly pleasing in Bosnia, Italy and Hungary, business in Greece was difficult, according to the press release. Affichage Hellas has had a difficult start to the current year, accompanied by a fierce price war. However, the new management team has already achieved a significant increase in the second quarter.
Affichage is cautious about the rest of the year. The first signs of an economic slowdown are noticeable in Switzerland. The short-term booking behavior of customers makes forecasts for the second half of the year difficult. However, growth is expected to continue abroad.
The company posted a loss of CHF 1.0 million for the financial result, following a positive result of CHF 2.86 million in the same period of the previous year. Affichage cites currency losses and increased interest expenses as the reasons for the poor result.
The home market of Switzerland recorded an organic increase in sales revenue of 6.6% to CHF 152.9 million. The company benefited from the European Football Championships and the generally positive market environment.
In international business, turnover rose from 18.1% to 39.4% thanks to acquisitions. This corresponds to 31.4 percent of total Group sales. While the sales trend was particularly pleasing in Bosnia, Italy and Hungary, business in Greece was difficult, according to the press release. Affichage Hellas has had a difficult start to the current year, accompanied by a fierce price war. However, the new management team has already achieved a significant increase in the second quarter.
Affichage is cautious about the rest of the year. The first signs of an economic slowdown are noticeable in Switzerland. The short-term booking behavior of customers makes forecasts for the second half of the year difficult. However, growth is expected to continue abroad.
