Worry lines disappear
PubliGroupe: Revenue in Switzerland fell again, but the company as a whole is doing better.
PubliGroupe In Switzerland, sales fell again, but the company as a whole is doing better again Although PubliGroupe can report a slightly positive sales trend for the first half of 2004 for the first time in three years and an even more pleasing increase in the operating result, even within PubliGroupe the figures give rise only to cautious optimism. CEO Hanspeter Rohner said at the press conference on 30 August that there were various signs that the economy was "stabilizing". However, he emphasized: "The future of advertising expenditure remains unpredictable. Commercial advertising in particular seems to serve as a manipulation tool for companies: People are booking at shorter notice, and postponing or suspending at just as short notice. "PubliPress with less turnover
At CHF 986.4 million, sales were only CHF 2.7 million better than in the first half of 2003, and the 62 percent improvement in the operating result to CHF 36 million was achieved primarily through further savings, not least in personnel. In any case, the PubliPresse division, which includes the advertising business in Switzerland and is PubliGroupe's mainstay, recorded a further decline in sales, albeit of only 2 percent. In contrast, the international network Publicitas Promotion Network (PPN) achieved an increase in sales of 8 percent, although developments in the various markets varied considerably: in Europe, sales were up 11 percent, in Asia 17 percent, while business in North and South America was negative at minus 5 percent. One reason for the downward trend in America: In the USA, PPN lost two major marketing contracts - the US representation of the Financial Times and two customer magazines from American Express Corp. "With new management, we are now in the process of implementing a strategy in the USA that focuses more strongly on the daily newspaper market," said Rohner. The USA will remain negative in 2004, but things should start to pick up again in 2005.
Aftermath for Yellow Pages
The PubliDirect division (Yellow Pages) also developed positively with a 6 percent increase in sales, although the recession is expected to have a noticeable impact in this area even if the economy picks up. However, the 30 percent stake acquired in The Guide Company in Zurich in July will enable the qualitative expansion of the Yellow Pages, it said.
When asked whether PubliGroupe now sees growth potential primarily in the electronic media, Rohner said that the press will grow more strongly again in the short term, as he estimates that it will regain 60 to 70 percent of the CHF 800 million in advertising volume lost in the last three years. "But we will not reach the peak of 2000," Rohner clarified. After that, radio and TV would be the main growth drivers. With Cinecom, PubliGroupe has therefore taken a first step into the TV and cinema market, but the decision to enter the radio market is still pending. "However, radio is an issue both in Switzerland and abroad," he said.
No all-clear yet, but cautious optimism: Hanspeter Rohner, CEO PubliGroupe.
At CHF 986.4 million, sales were only CHF 2.7 million better than in the first half of 2003, and the 62 percent improvement in the operating result to CHF 36 million was achieved primarily through further savings, not least in personnel. In any case, the PubliPresse division, which includes the advertising business in Switzerland and is PubliGroupe's mainstay, recorded a further decline in sales, albeit of only 2 percent. In contrast, the international network Publicitas Promotion Network (PPN) achieved an increase in sales of 8 percent, although developments in the various markets varied considerably: in Europe, sales were up 11 percent, in Asia 17 percent, while business in North and South America was negative at minus 5 percent. One reason for the downward trend in America: In the USA, PPN lost two major marketing contracts - the US representation of the Financial Times and two customer magazines from American Express Corp. "With new management, we are now in the process of implementing a strategy in the USA that focuses more strongly on the daily newspaper market," said Rohner. The USA will remain negative in 2004, but things should start to pick up again in 2005.
Aftermath for Yellow Pages
The PubliDirect division (Yellow Pages) also developed positively with a 6 percent increase in sales, although the recession is expected to have a noticeable impact in this area even if the economy picks up. However, the 30 percent stake acquired in The Guide Company in Zurich in July will enable the qualitative expansion of the Yellow Pages, it said.
When asked whether PubliGroupe now sees growth potential primarily in the electronic media, Rohner said that the press will grow more strongly again in the short term, as he estimates that it will regain 60 to 70 percent of the CHF 800 million in advertising volume lost in the last three years. "But we will not reach the peak of 2000," Rohner clarified. After that, radio and TV would be the main growth drivers. With Cinecom, PubliGroupe has therefore taken a first step into the TV and cinema market, but the decision to enter the radio market is still pending. "However, radio is an issue both in Switzerland and abroad," he said.
No all-clear yet, but cautious optimism: Hanspeter Rohner, CEO PubliGroupe.
The figures are deceptive: Savings were the main contributor to the operating result.
Silver lining: Advertising expenditure is rising slightly in the daily press.
Markus Knöpfli
