PubliGroupe temporarily in the red
In 2000, PubliGroupe still reported a profit of 140 million francs, but in fiscal year 2001, the Lausanne-based advertising and media group was deep in the red
PubliGroupe reported a profit of 140 million francs for the year 2000, but the Lausanne-based advertising and media group is in the red in 2001: The loss amounted to around 185 million francs. Although PubliGroupe had announced a "substantial loss" in November as a precautionary measure, this has now turned into a record loss. There are two reasons for this. The slump in online business has torn a hole of CHF 84 million in PubliGroupe's coffers. This figure was already mentioned when the loss warning was issued in November. At the time, however, this also gave the impression that this was the main source of losses. But this was not the case. Far greater is the loss incurred by the
The takeover of the US advertising agency group Panoramic Communications has had a negative impact on PubliGroupe's cash flow: Firstly, Panoramic posted an annual loss of CHF 30 million, and secondly PubliGroupe fully wrote off the CHF 75 million investment made for Panoramic last year. Together, these two factors amounted to 105 million francs. A piquant fact: PubliGroupe only mentioned the problems surrounding Panoramic in passing in November, without providing any figures.
Heinz Wägeli, CFO of PubliGroupe, justifies the communication at the time by stating that the CHF 75 million was not an actual loss, but a goodwill write-off. Wägeli also emphasized that the annual loss of CHF 30 million also included restructuring costs: PubliGroupe has reduced the former ten Panoramic companies to four today and cut 274 jobs (40 percent). For 2002, it expects the four remaining Panoramic companies to generate sales of CHF 100 million. Last year, the Panoramic Group achieved "only" 121 million Swiss francs (mk).
The takeover of the US advertising agency group Panoramic Communications has had a negative impact on PubliGroupe's cash flow: Firstly, Panoramic posted an annual loss of CHF 30 million, and secondly PubliGroupe fully wrote off the CHF 75 million investment made for Panoramic last year. Together, these two factors amounted to 105 million francs. A piquant fact: PubliGroupe only mentioned the problems surrounding Panoramic in passing in November, without providing any figures.
Heinz Wägeli, CFO of PubliGroupe, justifies the communication at the time by stating that the CHF 75 million was not an actual loss, but a goodwill write-off. Wägeli also emphasized that the annual loss of CHF 30 million also included restructuring costs: PubliGroupe has reduced the former ten Panoramic companies to four today and cut 274 jobs (40 percent). For 2002, it expects the four remaining Panoramic companies to generate sales of CHF 100 million. Last year, the Panoramic Group achieved "only" 121 million Swiss francs (mk).
