Affichage with better results and lower sales
The outdoor advertising company Affichage increased its profit by 5.3 percent to 22.1 million Swiss francs in 2005. Consolidated revenue declined by 1.2 percent to 296.4 million, and operating income fell by 14.7 percent to 25.7 million Swiss francs.
The poster advertising company Affichage increased its profit by 5.3 percent to CHF 22.1 million in 2005. Group sales fell by 1.2 percent to CHF 296.4 million and the operating result by 14.7 percent to CHF 25.7 million. However, the increase in profit was due to the sale of advertising media and contract rights in Stuttgart and improved financial and real estate income. As the company's CEO Christian Kauter explained at the annual media conference on Tuesday, after a good start to the year, an initial decline set in during the summer. Christmas business was disappointing. In the main market of Switzerland, net advertising expenditure was stable to slightly down according to the sales figures, with sales falling by 0.3 percent. The decline abroad amounted to 8%, but without a change in the consolidation ratio, foreign sales would have increased by 6.4%. CFO Ulrich von Bassewitz attributed the decline in the operating result to the stagnation of sales in a business with high fixed costs. Affichage has also established itself more firmly abroad. It made acquisitions in Romania, Greece and northern Italy. In Switzerland, it acquired the niche provider Visiorama, as reported by Sda. Affichage wants to continue to grow abroad and has its sights set on south-eastern Europe, particularly Serbia-Montenegro. However, with a sales share of around 10 percent, Affichage is still a long way from its international target of 25 percent. In Switzerland, the strategy is diversification.
Affichage is optimistic for the current year. After a sluggish January, business picked up significantly in February, according to Kauter. He expects growth of 5 percent abroad, where the strategy is: growth with calculable risk. As Affichage also states in the press release, the persistently very short-term booking behavior of customers makes it difficult to forecast sales for a longer time horizon. The improved economic sentiment suggests that demand will increase in the first quarter. Affichage also reports that the cantonal advertising bans on tobacco and alcohol currently under discussion will not be introduced in any of the economically relevant areas in 2006. Together with practically all Swiss associations, Affichage is campaigning against these regulations.
Affichage is optimistic for the current year. After a sluggish January, business picked up significantly in February, according to Kauter. He expects growth of 5 percent abroad, where the strategy is: growth with calculable risk. As Affichage also states in the press release, the persistently very short-term booking behavior of customers makes it difficult to forecast sales for a longer time horizon. The improved economic sentiment suggests that demand will increase in the first quarter. Affichage also reports that the cantonal advertising bans on tobacco and alcohol currently under discussion will not be introduced in any of the economically relevant areas in 2006. Together with practically all Swiss associations, Affichage is campaigning against these regulations.
