Affichage share climbs thanks to good result

The poster advertising company Affichage benefited from the good economic situation last year and posted a new record result. Net profit climbed by 44.1 percent to CHF 31.9 million compared to the previous year. Sales increased by 12.9 percent to CHF 334.5 million, as Affichage announced on Tuesday. Shareholders should also benefit from the good result: The Board of Directors is proposing the distribution of a dividend of CHF 8.00 (6.25) and a par value repayment of CHF 2.40 per share. In the home market of Switzerland, sales revenue grew by 9.9 percent to CHF 293.2 million. APG, the Swiss market leader in poster advertising and the largest company in the Affichage Group, clearly strengthened its position in Zurich. In addition to the successful participation in tenders for advertising space, there are also other innovative offers: After installing backlit rotating machines at railroad stations, APG is now also positioning them in central squares in the largest Swiss cities. The other companies also contributed to the pleasing Group result.
Abroad, Affichage expanded its market position in Slovenia, Croatia and Serbia by acquiring a majority stake in the Metropolis Media Group. It also took over Montepano in Montenegro. Its involvement in Greece developed more successfully than expected. The Group's sales revenue abroad rose by 39.3% to CHF 41.3 million.
Affichage expects the strong growth to continue in the first half of 2007. The economic signals are positive, although sales losses due to the increasing cantonal bans on tobacco and alcohol advertising will have to be compensated for. The Group also anticipates a favorable development abroad. On the Swiss stock exchange, investors reacted enthusiastically to the figures presented and the increased distribution. The share price jumped in the morning, rising by 8.5 percent to CHF 242 in a generally declining market.