Publigroupe: Digital division grows by eight percent
Publigroupe posted a net result of CHF 14.9 million in the first half of 2011. The operating result improved from CHF 11.3 million to CHF 13.8 million. Total sales fell by 11 percent, while the digital segment grew by 8 percent.
Calculated at constant exchange rates, the increase was as much as 20 percent, as the advertising marketer announced on Monday. The company is less successful in the traditional advertising marketing business, as the figures show. In the first six months, the operating loss at EBIT level widened from CHF 3.7 million to CHF 6.2 million. However, part of the loss is attributable to write-downs in connection with the withdrawal from the television advertising business. Publigroupe had ceded the television marketing business of the Prosieben Sat.1 and 3+ groups to another company.
Overall, Publigroupe's operating profit grew by 23 percent to CHF 13.8 million in the first half of the year. The increase was mainly due to cost reductions, the company wrote. Nevertheless, the Group was unable to prevent a significant drop in profits of 44 percent to CHF 14.9 million. According to the press release, the low exchange rate of the euro against the Swiss franc had a particularly negative impact on the half-year result.
Search & Find most successful
The Search & Find division was the most successful, contributing CHF 7.2 million to the operating profit. Experience shows that the division achieves a better result in the second half of the year. Overall, Publigroupe expects to improve on the 2010 operating result in the current financial year.
Publigroupe slipped into the red in 2008 due to the poor performance of the advertising marketing business. Thanks to restructuring measures, which included cutting a total of 750 jobs, the Group managed to return to profit last year.
