APG increases sales and profit
After several difficult years, the outdoor advertising group APG SGA can look back on a successful 2014 fiscal year. Revenue and profits increased. Shareholders are benefiting from the strong business performance in the form of significantly higher dividends.
In its home market of Switzerland, sales in the first half of the year were still below the previous year's level. However, the second half of the year brought a pleasing turnaround, the company announced on Friday. Sales in Switzerland rose by 3.2 percent to CHF 298.4 million in 2014. This puts APG/SGA well ahead of the overall advertising market growth of 1.4 percent, according to the press release.
Following loss-making expansion attempts, APG/SGA has significantly scaled back its international business and is now only active in Serbia. Sales there increased by 10.6 percent in local currencies to the equivalent of CHF 12.7 million. Overall, however, foreign sales are 16.3 percent down on the previous year following the market exit from Romania.
Business with mega posters was extremely pleasing in 2014, those responsible told the media on Friday. The expansion of the digital advertising offering remained high on the list of priorities. The introduction of the first animated City ePanels in Winterthur towards the end of the year was an important step in this direction. Group CEO Markus Ehrle puts APG's gross revenue from digital advertising media at more than CHF 20 million.
Higher dividend
APG/SGA was able to reduce its operating and administrative costs by 5.7 percent. Synergies with the fully acquired companies Impacta and Ecofer, which specialize in railroad advertising, contributed to this.
However, there was also an additional payment from the sale of a property in Neuchâtel and an amicable agreement on a put option relating to foreign activities. Net profit increased by 8.4 percent to 51.7 million francs. The dividend is to be increased significantly from twelve francs in the previous year to 22 francs per share. The price of APG/SGA shares rose significantly after the publication of the annual figures. At the close of trading, the share price was up 11.7 percent.
Benefit from elections
APG/SGA remains very positive about the future prospects for the poster medium. However, in view of currency turbulence and the associated economic influences, APG/SGA is refraining from making a concrete forecast for the current year. The company has made a good start to 2015, APG/SGA CEO Ehrle merely told the media.
APG/SGA also expects a positive development from the national elections in the fall. However, various elections and votes also took place in 2014, which is why the effect should not be overestimated, Ehrle qualified.
Ehrle also expects bookings to fluctuate strongly and at short notice again in 2015. The number of bookings already varied greatly from month to month in 2014, said the Group CEO. This ranged from a decline in sales of over ten percent in February to an increase of over 20 percent in the summer months.
