Publigroupe's expansions reduce profits

 Thanks to growth in international markets and in electronic media, Publigroupe recorded a 3.8% increase in sales. EBIT amounted to CHF 61.8 million, an increase of 7.7 percent. Profit increased by 12.2 percent on a comparable basis and amounted to CHF 53.9 million, according to a press release issued by the advertising intermediary. According to the statement, the company excluded one-off income from the sale of investments and changes in the scope of consolidation, which mainly related to acquisitions in the electronic media and local guides in the second half of the year. Overall, all business segments are well positioned: An improved EBIT for the PubliPresse division (+15.9 percent), the international Publicitas Promotion Network division (+18.5 percent) and the business in development segment, which was able to reduce its loss by half. The PubliDirect division posted a 15.3 percent lower EBIT due to its expenditure on the launch and expansion of the Local.ch online portal.
The increase in sales is attributable to acquisitions in connection with the expansion of electronic media and local guides. Publigroupe is thus positioning itself in pronounced growth segments with strategic implications. With its portfolio of electronic media and online services, the Group recorded growth of over 60 percent in the year under review. Further commitments in this area are to follow. The dividend payout is to be increased by one franc per share to 12 francs. The payout ratio will rise from 37% to 53%.