Publigroupe: Profit slump in the first half-year
Publigroupe has suffered a significant drop in net profit in the first half of the year despite stable sales. Profit fell from CHF 23.3 million to CHF 10.8 million within a year, as Publigroupe announced on Monday.
At 152.3 million francs, net sales remained practically at the same level as in the first half of 2011 (153 million francs). The operating result amounted to CHF 2.3 million after CHF 4.1 million in the same period of the previous year. As in the previous year, Publigroupe benefited from non-operating factors in the first half of the year. The company generated one-off extraordinary income of CHF 15.4 million from the sale of the online advertising specialist Namics and other disposals.
Ad sales lag behind
Business with advertising sales (media sales) was once again poor. The market saw a double-digit decline. The significant decline was offset by good results in Search & Find. Media Sales posted an operating loss of CHF 8.2 million, compared with an operating loss of CHF 1.7 million in the previous year. The net loss in the segment is reported at CHF 5.5 million due to one-off proceeds from the sale of the shares in Südostschweiz Publicitas. This underlines the urgency of cost reduction, the company announced. Further savings "in the clear double-digit million range" are necessary, said CFO Andreas Schmidt of SNB. Overall, the number of jobs in advertising sales has fallen by 100 to 1128 full-time jobs since mid-2011. In March, the company assumed that it would have to cut further jobs after hundreds had already been lost in recent years.
Stock exchange does not approve new statement
Publigroupe is reporting in accordance with Swiss GAAP FER accounting standards for the first time in its 2012 half-year financial statements. One reason for the changeover was to be able to better present its own performance in the online sector thanks to the proportional consolidation of its holdings in Zanox and Local.ch. However, the Swiss stock exchange SIX did not allow this until now. As a result, the shareholdings are still consolidated in the income statement prepared in accordance with Swiss GAAP FER. Talks with the stock exchange regulators are continuing, explained CFO Schmidt. However, Publigroupe also publishes a pro-forma statement with corresponding proportionate consolidation for the two segments Search & Find and Digital & Marketing Services (DMS). According to this, sales in the online sector account for 52 percent of total business.
Proceeds from property sale for shareholders
The sale of four properties was successfully completed in August. The sale will result in a book profit of CHF 39 million in the 2012 annual financial statements. As already announced, the majority of this will flow to shareholders via a share buyback program.
In September, online marketing specialist Arndt Groth will take over as CEO of Publigroupe. The German will be responsible for driving forward the overall digital offering. Hans-Peter Rohner will relinquish his dual mandate at this time and concentrate on the chairmanship of the Board of Directors. (SDA)
