"Too ponderous for a long time"
Jean-Jacques Zaugg on PubliGroupe's Successes and Failures
Jean-Jacques Zaugg on the successes and failures of PubliGroupeFor a long time, the Lausanne-based company Publicitas stood for solidity. Due to bad investments in the US market and excessive euphoria in the online business, P slipped into the red. However, recovery measures have been initiated, so CEO Jean-Jacques Zaugg remains optimistic. In view of the poor results, your very last press conference was probably one of the most difficult media events in PubliGroupe's history. How did you feel about it?
Jean-Jacques Zaugg: I have no feelings about this. It is important to me to maintain a certain inner balance despite the difficult situation. Life is made up of ups and downs, and the economic cycle is no different. It is important to remain humble when success comes and to have the necessary composure in the face of failure. And you must also have the courage to draw the consequences and learn the appropriate lessons in order to avoid mistakes in the future.
What legacy will you leave to your successor, who takes office on July 1?
Zaugg: Thanks to the measures we immediately introduced to recover the company, I can leave Mr. Rohner with a company on a solid footing.
And what advice would you give your successor?
Zaugg: To react anti-cyclically. And if I may cite the example of Panoramic in the USA, where we were unfortunately unable to exercise direct control over the company, I would advise insisting on direct influence and control in future when making acquisitions of this size.
You have been with PubliGroupe since 1969. What events do you particularly remember?
Zaugg: The merger of the various advertising companies in Switzerland. This consolidation began in the early nineties. What I was also particularly pleased about was the creation of Publimedia with its own independent image. Publimedia has revitalized the activities of PubliGroupe and Publicitas in Switzerland. Another positive aspect is our declared and implemented strategy of acquiring minority stakes in publishing companies. It represents an important contribution to cooperation between different publishing houses, for example with the constitution of new newspaper systems, and thus makes it possible to preserve the independence of regional publishers. Finally, I would also like to highlight the success of PubliDirect, which is a cornerstone of PubliGroupe.
PubliGroupe enables small newspapers to survive thanks to its advertising sales network. Will PubliGroupe continue to play this role?
Zaugg: I am convinced that it will continue to be worthwhile for the company and the press landscape to play this role in the future. The regional publishers have also created collaborations that result in useful synergies.
For decades, the letter P of Publicitas stood for stability, solidity and reliability. Now the share price is falling and there is no end to the bad news. What has happened?
Zaugg: We were probably a little too sedate for years. Then we decided to pursue a policy of expansion and made acquisitions in order to open up the Group to other areas and make the company more dynamic. What then happened in the USA with Panoramic Communication was a failure. Our involvement in the online business was also too hasty and too costly. We let ourselves be carried away by the prevailing euphoria. However, we have learned a lot from our mistakes. However, the new technologies are indispensable, which is why our investments in this area have not been completely lost. We are using our experience here for our core business.
Is PubliGroupe's strategy of reacting rather than acting partly responsible for the current predicament?
Zaugg: We don't just have failures to report. We have made acquisitions for PubliDirect, without which this line of business would not be so successful. This also applies to Publicitas-Promotion Network. We have also successfully acquired Globe Media and Custom Marketing Group in the USA.
How has PubliGroupe's corporate culture changed with its entry into the multimedia sector?
Zaugg: For the employees, it was a good opportunity to break out of their working rhythm and environment in order to get to grips with new working methods. This didn't happen smoothly and painlessly everywhere.
The Swiss market hardly seems to offer PubliGroupe any opportunities for expansion. Which countries have priority in the expansion strategy?
Zaugg: North America remains an important market. Since last year, we have also been expanding in Asia, where we acquired Emphasis, with which we will be involved in in-flight entertainment. Since the fall, we have also been operating a joint venture in the People's Republic of China.
What will you do after July 1, 2002?
Zaugg: I certainly won't be accepting any directorships in areas that are close to PubliGroupe. But I would like to get involved in social projects. And finally, I want to travel to see the world. During my time as a director, I always made a strict distinction between business and private travel. Interview: Anita Vaucher
PubliGroupe under insider suspicionPubliGroupe is facing an investigation by the Swiss stock exchange SWX. PubliGroupe is accused of violating the regulations on ad hoc publicity, writes SDA. The investigation is in connection with the media group's half-year figures published on September 4. Jean-Denis Briod, Head of Communications at PubliGroupe, explained that PubliGroupe had received a questionnaire from SWX in September. This was intended to clarify whether too much time had elapsed between the meeting of the Board of Directors on August 27, at which it approved PubliGroupe's poor results, and the publication of the figures on September 4. PubliGroupe had duly completed the questionnaire, but had not heard anything from the stock exchange since then. PubliGroupe had heard about the latest development in the news ticker and had not been informed beforehand.
Massive losses PubliGroupe closes the 2001 financial year with a loss of 185 million francs. The result thus far exceeded the expectations of analysts, who had predicted a loss of between 40 and 100 million francs. All divisions, with the exception of Directories, posted lower revenues. Consolidated turnover excluding acquisitions fell by 9 percent. The slump in online advertising and the subsequent sale of the Internet advertising group Real Media tore a hole of CHF 84 million in PubliGroupe's coffers. Sales at the newly acquired US marketing agency group Panoramic fell by 25 percent, forcing the closure of individual companies. PubliGroupe therefore decided to write Panoramic off in full at CHF 105 million. The media group, which is listed on the Swiss stock exchange, expects to return to profit in the current financial year.
Jean-Jacques Zaugg: I have no feelings about this. It is important to me to maintain a certain inner balance despite the difficult situation. Life is made up of ups and downs, and the economic cycle is no different. It is important to remain humble when success comes and to have the necessary composure in the face of failure. And you must also have the courage to draw the consequences and learn the appropriate lessons in order to avoid mistakes in the future.
What legacy will you leave to your successor, who takes office on July 1?
Zaugg: Thanks to the measures we immediately introduced to recover the company, I can leave Mr. Rohner with a company on a solid footing.
And what advice would you give your successor?
Zaugg: To react anti-cyclically. And if I may cite the example of Panoramic in the USA, where we were unfortunately unable to exercise direct control over the company, I would advise insisting on direct influence and control in future when making acquisitions of this size.
You have been with PubliGroupe since 1969. What events do you particularly remember?
Zaugg: The merger of the various advertising companies in Switzerland. This consolidation began in the early nineties. What I was also particularly pleased about was the creation of Publimedia with its own independent image. Publimedia has revitalized the activities of PubliGroupe and Publicitas in Switzerland. Another positive aspect is our declared and implemented strategy of acquiring minority stakes in publishing companies. It represents an important contribution to cooperation between different publishing houses, for example with the constitution of new newspaper systems, and thus makes it possible to preserve the independence of regional publishers. Finally, I would also like to highlight the success of PubliDirect, which is a cornerstone of PubliGroupe.
PubliGroupe enables small newspapers to survive thanks to its advertising sales network. Will PubliGroupe continue to play this role?
Zaugg: I am convinced that it will continue to be worthwhile for the company and the press landscape to play this role in the future. The regional publishers have also created collaborations that result in useful synergies.
For decades, the letter P of Publicitas stood for stability, solidity and reliability. Now the share price is falling and there is no end to the bad news. What has happened?
Zaugg: We were probably a little too sedate for years. Then we decided to pursue a policy of expansion and made acquisitions in order to open up the Group to other areas and make the company more dynamic. What then happened in the USA with Panoramic Communication was a failure. Our involvement in the online business was also too hasty and too costly. We let ourselves be carried away by the prevailing euphoria. However, we have learned a lot from our mistakes. However, the new technologies are indispensable, which is why our investments in this area have not been completely lost. We are using our experience here for our core business.
Is PubliGroupe's strategy of reacting rather than acting partly responsible for the current predicament?
Zaugg: We don't just have failures to report. We have made acquisitions for PubliDirect, without which this line of business would not be so successful. This also applies to Publicitas-Promotion Network. We have also successfully acquired Globe Media and Custom Marketing Group in the USA.
How has PubliGroupe's corporate culture changed with its entry into the multimedia sector?
Zaugg: For the employees, it was a good opportunity to break out of their working rhythm and environment in order to get to grips with new working methods. This didn't happen smoothly and painlessly everywhere.
The Swiss market hardly seems to offer PubliGroupe any opportunities for expansion. Which countries have priority in the expansion strategy?
Zaugg: North America remains an important market. Since last year, we have also been expanding in Asia, where we acquired Emphasis, with which we will be involved in in-flight entertainment. Since the fall, we have also been operating a joint venture in the People's Republic of China.
What will you do after July 1, 2002?
Zaugg: I certainly won't be accepting any directorships in areas that are close to PubliGroupe. But I would like to get involved in social projects. And finally, I want to travel to see the world. During my time as a director, I always made a strict distinction between business and private travel. Interview: Anita Vaucher
PubliGroupe under insider suspicionPubliGroupe is facing an investigation by the Swiss stock exchange SWX. PubliGroupe is accused of violating the regulations on ad hoc publicity, writes SDA. The investigation is in connection with the media group's half-year figures published on September 4. Jean-Denis Briod, Head of Communications at PubliGroupe, explained that PubliGroupe had received a questionnaire from SWX in September. This was intended to clarify whether too much time had elapsed between the meeting of the Board of Directors on August 27, at which it approved PubliGroupe's poor results, and the publication of the figures on September 4. PubliGroupe had duly completed the questionnaire, but had not heard anything from the stock exchange since then. PubliGroupe had heard about the latest development in the news ticker and had not been informed beforehand.
Massive losses PubliGroupe closes the 2001 financial year with a loss of 185 million francs. The result thus far exceeded the expectations of analysts, who had predicted a loss of between 40 and 100 million francs. All divisions, with the exception of Directories, posted lower revenues. Consolidated turnover excluding acquisitions fell by 9 percent. The slump in online advertising and the subsequent sale of the Internet advertising group Real Media tore a hole of CHF 84 million in PubliGroupe's coffers. Sales at the newly acquired US marketing agency group Panoramic fell by 25 percent, forcing the closure of individual companies. PubliGroupe therefore decided to write Panoramic off in full at CHF 105 million. The media group, which is listed on the Swiss stock exchange, expects to return to profit in the current financial year.
