Increasing focus on foreign countries
Outdoor Advertising: Despite stagnation in the domestic market and a decline in Eastern Europe, Affichage earned more in 2005.
Affichage the company acquisitions that it made last year.
was made. It thus spent on four acquisitions, all of which were made abroad.
not only raised 42 times more money than in the previous year, the
amount also accounts for two thirds of the total
Affichage investments in 2005. Affichage purchased in advance the
Churchill Group, which owns 1500 poster sites in Romania. Next
the out-of-home advertiser took over 60 percent of La Strada in Greece
(large areas), and the small Publifutura in northern Italy, with the
Milan, as well as the niche player Visiorama in Milan.
Liechtenstein, which is active in the mountain railroads sector.
These investments show one thing above all: even after the withdrawal of
Affichage from the bidding process for Deutsche Eisenbahnreklame
(DERG), the Swiss out-of-home advertiser is still willing to expand its
expand its field of activity abroad. In the medium term, the
Foreign business at Affichage accounts for 25 percent of total sales,
said CEO Christian Kauter at the annual press conference on 28.
February. Previous involvement in Eastern Europe as part of Europlakat
International (EPI), a joint venture with JCDecaux, today contributes around
10 percent of affichage sales.
Despite the high level of investment, all the new acquisitions had hardly
influence on the Affichage Group's sales because they are either (still)
are very small or because the acquisitions of La Strada and
Churchill were only made at the end of 2005. The turnover of the
Affichage Group as a whole declined slightly by 1.2 percent, which
two reasons: the sales revenue in Switzerland was
fell by 0.3 percent, and EPI's earnings also declined.
by 8 percent. However, both declines are due to accounting factors - to
The reason for the changeover in accounting from Swiss GAAP FER to
IFRS. According to the previous standard, Affichage would have achieved +0.4
percent, while EPI would have increased by 6.4 percent.
can. "EPI was our growth area in 2005," emphasized
Christian Kauter. Whether declining or increasing sales: the
In any case, Affichage was able to increase its consolidated net income by 5.5
percent to 22.1 million francs.
The outlook for 2006 is rosier again: at EPI, Affichage
with an increase in sales of 5 percent, and in the capital cities
of Bulgaria and Romania this year for the tendering of municipal contracts
on. EPI will take part in the tender in Sofia and in Bucharest
Affichage itself, but is able to rely on JCDecaux and its
range of street furniture.
The out-of-home advertiser also wants to grow in Switzerland, but the
Kauter believes that market share gains in the traditional out-of-home advertising market
not. That is why he has his eye on new areas. Which of these
However, the CEO does not want to disclose the details. Either way, this year
he anticipates an increase in sales of around 2 percent in the domestic market.
At the Annual General Meeting in May, the Board of Directors of
Affichage also announced two changes: As successor to the late
Chairman of the BoD Jean-Philippe Maitre will be the lawyer Klaus Hug
proposed. Hug was a personal assistant to Federal Councillor Kurt
Furgler, member of the Competition Commission and Chairman of the
Swiss Department Store Association. From the last mandate he will
this year. It will also be proposed to the AGM that Christian
Kauter as a member and delegate of the BoD.
Markus Knöpfli
