According to SDA, the letter to shareholders published on Thursday states that international business has not met expectations. And the bottom is unlikely to be reached yet. The difficult situation has prompted the company to analyze its entire portfolio, with Greece as a priority. On balance, the Geneva-based company posted a profit of CHF 0.95 million. This is a drop of 84.3 percent compared to the same period last year. Half-year sales shrank by 14.6 percent to 141 million. francs.
In Greece, new laws made outdoor advertising more difficult. Customers of Affichage Hellas therefore cut their budgets. The ban on tobacco advertising also affected the company. Sales in Greece plummeted by 75 percent. Affichage is now forced to cut jobs in Greece. When reviewing its strategy, Affichage does not want to rule out any options, as CFO Ulrich von Bassewitz told the financial news agency AWP. A sale of the Greek business, a cooperation with a local partner, but also closure are conceivable.
But things were not going well in other countries either: in Romania - the country was hit hard by the economic crisis - sales fell by more than 40 percent. Overall, sales abroad fell by 49.9 percent to 24.5 million francs.
Small growth on the Swiss market
In its home market of Switzerland, however, Affichage recorded slight growth of 0.2% to CHF 116.5 million. However, growth in the first quarter flattened out again from April to June. June in particular was weak, said von Bassewitz. However, the situation looked better again in July. In Switzerland, Affichage has a good foundation, not least thanks to the poster company APG, according to the letter to shareholders. The company points out that APG has won a concession contract in Bern valid until 2018. This means that it remains in possession of all important city contracts in Switzerland.
Affichage was cautious about the outlook: while there are signs of an economic recovery in Switzerland, it is extremely difficult to make predictions for international business. However, the company aims to be in the black for the full financial year, as CFO Ulrich von Bassewitz said.