Affichage seeks second mainstay
Out-of-home advertising II Affichage's figures are so good that the out-of-home advertiser wants to go it alone in Eastern and Southern Europe.
Out-of-home advertising II Affichage's figures are so good that the out-of-home advertiser wants to go it alone in Eastern and Southern Europe. "We are very happy about the past year, all companies in Switzerland and abroad have developed positively," said Affichage CEO Christian Kauter at the annual press conference. In fact, Affichage was able to increase its sales revenue by 12.9 percent and its profit after extraordinary income by as much as 44.1 percent. As a result, the distribution to shareholders is also expected to be 66.4 percent higher. Following the publication of these figures, the Affichage share price rose from CHF 223 to as much as CHF 244.
The out-of-home advertiser was able to increase its sales revenue in Germany by 10 percent and abroad by almost 40 percent. Its goal is to generate 25 percent of its sales abroad by 2008. Currently it is 12 percent. "We need a second mainstay because the Swiss market is increasingly regulated," said Kauter, who has been fighting advertising bans for years.
In the middle of the year, the Swiss poster market leader intends to take a further step in Eastern Europe: It is leaving Europlakat International (EPI), the joint venture with JCDecaux. The countries previously managed jointly will be split up: Affichage has already been operating independently in Romania and Greece for around a year and will in future also work the markets in Bosnia, Bulgaria, Montenegro, Serbia and Hungary on its own. However, this will continue to be done with the support of JCDecaux when it comes to street furniture. The French company will retain a 30 percent stake in Affichage.
Kauter expects to gain further market share in Eastern and Southern Europe in 2007. Just a few weeks ago, the company acquired Domisi Outdoor, the largest Greek outdoor advertising company. And if Clear Channel Outdoor is indeed split up, Kauter has further options.
Markus Knöpfli
The out-of-home advertiser was able to increase its sales revenue in Germany by 10 percent and abroad by almost 40 percent. Its goal is to generate 25 percent of its sales abroad by 2008. Currently it is 12 percent. "We need a second mainstay because the Swiss market is increasingly regulated," said Kauter, who has been fighting advertising bans for years.
In the middle of the year, the Swiss poster market leader intends to take a further step in Eastern Europe: It is leaving Europlakat International (EPI), the joint venture with JCDecaux. The countries previously managed jointly will be split up: Affichage has already been operating independently in Romania and Greece for around a year and will in future also work the markets in Bosnia, Bulgaria, Montenegro, Serbia and Hungary on its own. However, this will continue to be done with the support of JCDecaux when it comes to street furniture. The French company will retain a 30 percent stake in Affichage.
Kauter expects to gain further market share in Eastern and Southern Europe in 2007. Just a few weeks ago, the company acquired Domisi Outdoor, the largest Greek outdoor advertising company. And if Clear Channel Outdoor is indeed split up, Kauter has further options.
Markus Knöpfli
