APG|SGA 2017 with lower sales and profit
APG|SGA suffered a decline in sales in 2017 due to a reduced advertising inventory in Switzerland. While sales revenue in the home market fell by 5.1 percent, revenue in Serbia increased by 5.9 percent. Overall, sales of the leading outdoor advertising group in Switzerland declined by 4.7 percent to CHF 300.7 million in 2017, APG announced on Wednesday.
Compared to the 2016 financial year, the profit figures for 2017 are significantly worse. However, this is due to non-recurring income of 22.6 million Swiss francs, which resulted from the sale of a property in 2016.
Reported operating profit (Ebit) decreased by 31 percent to 61.3 million Swiss francs last year. Adjusted for the property sale, Ebit would have declined by 7.5 percent. Net profit declined by 28 percent to 50.7 million Swiss francs. Adjusted, this would have resulted in a minus of 3.5 percent.
The past year can once again be described as successful, APG commented in its letter to shareholders. Sales revenues were lower than in the previous year due to the non-renewal of concession contracts in Switzerland. However, a positive sales trend was achieved on the continuing portfolio. In addition, important tenders were won.
As in the previous year, shareholders will receive a total dividend of 24 Swiss francs. As in the previous year, this includes an ordinary dividend of 12 francs and a special dividend of also 12 francs. The Board of Directors is of the opinion that, based on the annual financial statements, a doubling of the dividend is again justified, according to the statement.
Decline in the home market
In the Swiss home market, sales revenue amounted to CHF 288.1 million. APG attributes the decline primarily to three non-renewed concession contracts with the Zürich VBZ transport authority and the cities of Lucerne and Geneva. Adjusted for this inventory reduction, sales revenue in Switzerland would have grown by 1.4 percent, APG writes.
In particular, the development of sales revenues from digital and large-format offerings was positive. The revenue shares of national and regional advertisers were also pleasing.
Apart from Switzerland, APG is only active abroad in Serbia. Sales there increased to CHF 12.6 million thanks to improved economic conditions. Economies of scale and process optimization also led to a significant increase in margins. APG is excellently positioned in the Serbian market with Alma Quattro.
The outlook for the current year is very general. With the contract wins achieved in the year under review, such as the renewed SBB contract, the expansion of technology and other initiatives, the foundation has been laid for continued positive development. APG is determined to secure its market position in 2018 and to continue actively demonstrating its role as an innovation leader. (SDA)
