APG: Focus on the Swiss Market Pays Off

This was caused, on the one hand, by a 2.7 percent decline in domestic sales and, on the other hand, by the withdrawal from foreign markets. Overseas sales alone fell by more than a quarter to 15.2 million francs, as APG announced on Thursday. After several years of losses, the company completed its withdrawal from the Romanian and Montenegrin markets in 2013. As a result, the share of international business has fallen to 5 percent. Before taxes and interest, the Swiss industry leader generated a profit of 61.9 million Swiss francs. Compared to the previous year, this represents an increase of 78 percent. In Switzerland, APG generated 289.1 million francs in revenue. The decline in revenue is primarily attributable to the advertising slump in the third quarter, which the recovery in the final quarter was unable to fully offset. Outdoor advertising continued to be shaped by digitalization. According to the company, APG already operates over 100 large HD screens in high-traffic pedestrian areas, as well as more than 200 screens on public transportation.

The company also announced that it had acquired full ownership of Impacta and Ecofer retroactive to January 1. Previously, APG had held a 50 percent stake in both companies. The purchase price paid to Polymedia was settled in APG shares; the exact price is performance-based. The two companies operate advertising on public transportation and are concessionaires of SBB, BLS, and other railways.

The Board of Directors will propose to the Annual General Meeting a dividend of ten francs and a special dividend of two francs per share—the highest payout in the company's history. Last year, shareholders received seven francs
receive a regular dividend and a special dividend of three francs. APG is not issuing a specific forecast for 2014, as the advertising markets remain unpredictable. However, the company is confident following the comprehensive restructuring of its failed international ventures. (SDA)