Operating profit (EBIT) amounted to CHF 12.4 million, compared with an operating loss of CHF 3.5 million in the first half of 2009. The company continued its cost-cutting efforts and reduced costs by CHF 27 million between January and the end of June. Within the space of a year, Publigroupe has cut over 400 jobs.
However, the improved results are also attributable to the sale of the shareholdings in the publishing houses Basler Zeitung Medien and
Edipresse at the beginning of 2010. But even without the one-off income totaling CHF 24.9 million, Publigroupe was still in the black. Turnover fell by 10.6 percent to CHF 714.1 million. On the stock exchange, the Publigroupe share price rose significantly by 2.4 percent immediately after the start of trading.
Media Sales with decline in sales
In the most important division, Media Sales, which includes the traditional advertising business with newspapers (Publicitas), sales fell by 10.8 percent to CHF 585.4 million. Publigroupe lost three important newspaper customers at the beginning of 2009, and Edipresse in particular is now marketing its media in-house. The operating loss of Media Sales fell from CHF 14.4 million to CHF 3.1 million. Publigroupe intends to achieve a "sustainable" turnaround at Media Sales in the next financial year, as stated in Monday's press release.
Of the three other segments, "Custom Publishing" (corporate publications) also posted an operating loss. Only the "Search & Find" division, in which Publigroupe works together with the telecoms group Swisscom (Swisscom Directories), was able to grow. Publigroupe wants to focus more strongly on online services. In the first half of the year, the company increased its turnover from online activities by almost 40 percent to CHF 313.8 million, mainly thanks to acquisitions, according to the press release. Publigroupe's forecast is confident: it is expecting an operating profit for 2010 as a whole.