Positive at lower level
Advertising market Despite a drop in sales, PubliGroupe almost tripled its net profit in the first half of 2003.
Advertising market Despite a drop in sales, PubliGroupe almost tripled its net profit in the first half of 2003.
"Although the worst seems to be over in the USA, we see no signs that an upturn is on the horizon in Switzerland next year," said PubliGroupe CEO Hans-Peter Rohner at Monday's press conference. He therefore did not give the all-clear for his group.
On the contrary: the continuing decline in press advertising is reducing the results of PubliPresse (Swiss market) and Publicitas Promotion Network (international markets). "These two divisions and the Group's management must therefore continue the strict cost-cutting programs", Rohner stated (see interview).
No wonder, as the savings made so far had only had a slight braking effect: In the first half of 2003, the operating result fell by a further 17 percent compared with the same period in the previous year - due to the largest division, PubliPresse, which alone lost 13 percent of its sales. It was particularly hard hit by the cost-cutting measures: of the 136 employees who have left PubliGroupe since the beginning of the year, 104 worked at PubliPresse.
There are three reasons why PubliGroupe was nevertheless able to increase its consolidated result to CHF 32.5 million in the first half of the year, almost tripling it compared with the same period last year: The group achieved a financial result of CHF 19.1 million, which is 193 percent higher than in the same period last year. In addition, high expenses and write-downs in connection with the American online subsidiary Panoramic Communications were eliminated this year, and finally PubliDirect (telephone directories) was once again the only division to post a significant increase in sales (+7%).
No recovery in the print sector
The group is also expecting a positive result in the second half of 2003, but at a lower level. The financial income is no longer expected to be as high, most PubliDirect products were published in the first half of the year and there is no recovery in sight in press advertising, said Rohner. For the future, PubliGroupe expects sales to fall even at PubliDirect, as the effects of the recession will also be felt in this area with a time lag.
"Even if the crisis should result in structural changes on the advertising market, a large part of the lost ground can be made up again thanks to the growth potential associated with the recovery," PubliGroupe says confidently for 2004.
Only PubliDirect closed the first half of 2003 with an increase in sales.
Markus Knöpfli
"Although the worst seems to be over in the USA, we see no signs that an upturn is on the horizon in Switzerland next year," said PubliGroupe CEO Hans-Peter Rohner at Monday's press conference. He therefore did not give the all-clear for his group.
On the contrary: the continuing decline in press advertising is reducing the results of PubliPresse (Swiss market) and Publicitas Promotion Network (international markets). "These two divisions and the Group's management must therefore continue the strict cost-cutting programs", Rohner stated (see interview).
No wonder, as the savings made so far had only had a slight braking effect: In the first half of 2003, the operating result fell by a further 17 percent compared with the same period in the previous year - due to the largest division, PubliPresse, which alone lost 13 percent of its sales. It was particularly hard hit by the cost-cutting measures: of the 136 employees who have left PubliGroupe since the beginning of the year, 104 worked at PubliPresse.
There are three reasons why PubliGroupe was nevertheless able to increase its consolidated result to CHF 32.5 million in the first half of the year, almost tripling it compared with the same period last year: The group achieved a financial result of CHF 19.1 million, which is 193 percent higher than in the same period last year. In addition, high expenses and write-downs in connection with the American online subsidiary Panoramic Communications were eliminated this year, and finally PubliDirect (telephone directories) was once again the only division to post a significant increase in sales (+7%).
No recovery in the print sector
The group is also expecting a positive result in the second half of 2003, but at a lower level. The financial income is no longer expected to be as high, most PubliDirect products were published in the first half of the year and there is no recovery in sight in press advertising, said Rohner. For the future, PubliGroupe expects sales to fall even at PubliDirect, as the effects of the recession will also be felt in this area with a time lag.
"Even if the crisis should result in structural changes on the advertising market, a large part of the lost ground can be made up again thanks to the growth potential associated with the recovery," PubliGroupe says confidently for 2004.
Only PubliDirect closed the first half of 2003 with an increase in sales.
Markus Knöpfli
