To the point: not an April Fool's joke
What would have been unthinkable a few years ago, but had been expected by industry experts for some time, has come to pass.
Publigroupe is selling its historic core business Publicitas and withdrawing from the print market in order to pursue a consistent digital strategy.
This will not have been the last step. By 2016 at the latest, it intends to sell its remaining media holdings. Thanks to these divestments, more than CHF 60 million will be available to help Publigroupe grow again through acquisitions in areas that fit the new strategy.
After the sale was announced, Publigroupe shares rose by a whopping 27.2 percent by 11 a.m. on Wednesday. This figure needs to be put into perspective, as the value of the share fell by a total of 37.9 percent in 2013 as a whole. But the stock market euphoria shows how dissatisfied shareholders were with the once all-powerful Publigroupe. Tens of millions have been squandered in recent years, money has been lost in supposedly promising projects abroad, and one strategy change has followed the next.
The unfortunate strategy was compounded by a marked decline in advertising investment in the print sector, Publigroupe's former goldmine. Despite the sale of many properties, the financial results weakened. This was due to the persistently poor results of the Media Sales division - i.e. Publicitas. Now, Publigroupe has freed itself from its burden and can look to the future with more optimism. Whether it will be rosy, we will see. It will certainly be easier.
The buyer of Publicitas is the Munich-based company Aurelius. A listed investment company that - according to the entry on its website - specializes in the "acquisition of companies with development potential through operational support". It goes on to say, "Through capital injections, new strategic directions and operational support, we achieve positive development for our subsidiaries and secure their future." But even more important is what Donatus Albrecht, Chief M&A Officer of Aurelius, said at Wednesday's media conference in response to the question of why Aurelius, of all companies, believes it can lead Publicitas back to success. Long-time owners often find it difficult to react to market changes, he says. "We are not smarter than today's owners, but we are unencumbered." He adds, "Tougher decisions are possible." If that's not a clear message. But it seems that Publicitas CEO Bandle can now implement his strategy with the full support of the owners. We are curious and keeping our fingers crossed.
Pierre C. Meier, Editor-in-Chief [email protected]
