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Affichage Holding increases sales to over CHF 300 million and advertises its poster sites in the East
Affichage Holding increases sales to over 300 million francs and advertises its poster sites in the EastBy Andreas PanzeriAfter sales at Affichage Holding soared by 14.5 percent to 307.6 million francs in the last financial year, growth of only 5 percent is expected for 2001. However, the company is still hoping for an increase in operating profit from 12.8 to 15 percent in three to four years. Electronic out-of-home advertising is expected to develop into an international growth driver.
Christian Kauter was "proud" at the press conference on Affichage Holding's 2000 financial year. The CEO was not only able to look back on APG's 100-year anniversary. In 2000, the Swiss market leader for out-of-home advertising also exceeded the "magic mark" of CHF 300 million for the first time, with an overall increase in revenue of 14.5 percent. CFO Ulrich von Bassewitz explained that sales reached CHF 307.6 million last year. The growth rate of the Swiss business was 14.8 percent and that of the European poster business 11.1 percent. Profit also climbed to new record highs at 28.4 million Swiss francs, which corresponds to an increase of 18.4 percent.
The poster has thus "held its own well in the cut-throat competition within the advertising expenditure of over 4 billion Swiss francs in 2000 and has always benefited from the growth", said Kauter. The tobacco industry continues to be important for the poster business, accounting for around 9 percent of sales.
However, the impending ban on advertising is already prompting billposters to look for alternatives. A possible new goldmine could be electronic outdoor advertising. Poster advertising by banks is declining slightly as a result of the mergers. Christian Kauter sees development potential for new business in poster advertising for the media.
An important pillar for the future is the development of a new IT system. This should make reservations much easier for customers. APG is already the only company in Switzerland to offer reservations via the Internet. This system is already being actively used by media agencies.
Transport advertising is also to be expanded in the national area. The dual-pole situation in Switzerland is a tough challenge. New important city contracts will soon have to be negotiated in Bern, Basel, Lugano and Fribourg. Whether there will be a tender in Lucerne is still open.
APG has bought up Alkon in the Zurich area. Bellinzona went to the competition. APG also lost its former prestigious contract at Zurich Airport because Plakanda offered a lower price. This means a loss of turnover of 700,000 francs. "But the competition is unlikely to earn much from this business," consoles the APG crew.
With e-advertising soon in
in the black
The Affichage Group has high hopes for electronic outdoor advertising. After its sensational entry with Europe's largest indoor screen at Zurich railroad station, the company expects sales of electronic posters in Switzerland to reach around CHF 4 million in 2001. Annual growth rates of 10 to 15 percent are planned thereafter.
The new e-advertising subsidiary is expected to break even after just two years. New locations for e-boards in Switzerland are currently being examined, namely in Berne, in the vicinity of Zurich railroad station, in sports stadiums, in Geneva and Montreux and, in view of Expo.02, also in Neuchâtel. These expansion plans are also dependent on the forthcoming amendment to the signalization ordinance.
Abroad, Affichage aims to increase its market share in Central European countries. "Be there when companies can be bought," is how Kauter describes his tactics. Abroad, Affichage operates via its 49 percent stake (with equal cooperation) in Europlakat International (EPI). In addition to the Swiss Affichage Holding, the Austrian Gewista (newly acquired by JCDecaux, France) and Deutsche Städte-Medien GmbH (DSM) are also involved in this cooperation. Affichage currently generates around 9 percent of its operating income abroad, a significant proportion of which is generated in the former Eastern Bloc.
Affichage is aiming for a growth rate of 5 percent in 2001. Because many investments in the urban
mobiliar are now considered to be complete, profits are nevertheless expected to increase by up to 15 percent in the near future. Kauter named the following very clear goals: adapting and simplifying structures and, of course, continuing to offer national coverage. No price increases are planned for 2001.
Affichage does not expect the ongoing investigation by the Competition Commission in connection with the 30% stake held by JCDecaux to have any adverse effects. The shareholding with restricted transferability remains limited to 5 percent.
Christian Kauter was "proud" at the press conference on Affichage Holding's 2000 financial year. The CEO was not only able to look back on APG's 100-year anniversary. In 2000, the Swiss market leader for out-of-home advertising also exceeded the "magic mark" of CHF 300 million for the first time, with an overall increase in revenue of 14.5 percent. CFO Ulrich von Bassewitz explained that sales reached CHF 307.6 million last year. The growth rate of the Swiss business was 14.8 percent and that of the European poster business 11.1 percent. Profit also climbed to new record highs at 28.4 million Swiss francs, which corresponds to an increase of 18.4 percent.
The poster has thus "held its own well in the cut-throat competition within the advertising expenditure of over 4 billion Swiss francs in 2000 and has always benefited from the growth", said Kauter. The tobacco industry continues to be important for the poster business, accounting for around 9 percent of sales.
However, the impending ban on advertising is already prompting billposters to look for alternatives. A possible new goldmine could be electronic outdoor advertising. Poster advertising by banks is declining slightly as a result of the mergers. Christian Kauter sees development potential for new business in poster advertising for the media.
An important pillar for the future is the development of a new IT system. This should make reservations much easier for customers. APG is already the only company in Switzerland to offer reservations via the Internet. This system is already being actively used by media agencies.
Transport advertising is also to be expanded in the national area. The dual-pole situation in Switzerland is a tough challenge. New important city contracts will soon have to be negotiated in Bern, Basel, Lugano and Fribourg. Whether there will be a tender in Lucerne is still open.
APG has bought up Alkon in the Zurich area. Bellinzona went to the competition. APG also lost its former prestigious contract at Zurich Airport because Plakanda offered a lower price. This means a loss of turnover of 700,000 francs. "But the competition is unlikely to earn much from this business," consoles the APG crew.
With e-advertising soon in
in the black
The Affichage Group has high hopes for electronic outdoor advertising. After its sensational entry with Europe's largest indoor screen at Zurich railroad station, the company expects sales of electronic posters in Switzerland to reach around CHF 4 million in 2001. Annual growth rates of 10 to 15 percent are planned thereafter.
The new e-advertising subsidiary is expected to break even after just two years. New locations for e-boards in Switzerland are currently being examined, namely in Berne, in the vicinity of Zurich railroad station, in sports stadiums, in Geneva and Montreux and, in view of Expo.02, also in Neuchâtel. These expansion plans are also dependent on the forthcoming amendment to the signalization ordinance.
Abroad, Affichage aims to increase its market share in Central European countries. "Be there when companies can be bought," is how Kauter describes his tactics. Abroad, Affichage operates via its 49 percent stake (with equal cooperation) in Europlakat International (EPI). In addition to the Swiss Affichage Holding, the Austrian Gewista (newly acquired by JCDecaux, France) and Deutsche Städte-Medien GmbH (DSM) are also involved in this cooperation. Affichage currently generates around 9 percent of its operating income abroad, a significant proportion of which is generated in the former Eastern Bloc.
Affichage is aiming for a growth rate of 5 percent in 2001. Because many investments in the urban
mobiliar are now considered to be complete, profits are nevertheless expected to increase by up to 15 percent in the near future. Kauter named the following very clear goals: adapting and simplifying structures and, of course, continuing to offer national coverage. No price increases are planned for 2001.
Affichage does not expect the ongoing investigation by the Competition Commission in connection with the 30% stake held by JCDecaux to have any adverse effects. The shareholding with restricted transferability remains limited to 5 percent.
