Good economic conditions particularly favoured growth in advertising revenues. The Group is also reaping the benefits from its proactive investment strategy, which focuses on strengthening existing activities, moving into new markets and broadening the range of titles published.

Net profit up 35

Edipresse achieved consolidated turnover of CHF 677.7 million in 1999, up 11.7%. Operating profit before depreciation progressed slightly more (+14.6%) and reached CHF 93.4 million. Profit before taxation was CHF 69.9 million (+35.7%). However, this figure includes exceptional profit items of CHF 8.6 million, connected in particular with the sale of Métrociné SA and an office building in Lisbon.

Net profit before goodwill amortisation and minority interests advanced to CHF 58 million, up 35%. As for net group profit, it increased by 45.3% and reached CHF 36.8 million.

The fruits of investment over several years

Thanks to favourable economic conditions, the Group experienced strong advertising revenue growth in virtually all the markets where it operates. Its print facilities (8 in all) also made a significant contribution, as a result of their excellent level of capacity utilisation and increases in third party subcontract orders.

The strong economy is not the only factor which has fuelled the company's profits, however. The high level of investment which Edipresse has kept up in recent years regarding acquisitions in Europe, the launch of new titles and the creation of joint ventures is bearing fruit.

The group strives to concentrate its resources where it can gain competitive advantage and acquire significant market share. It always targets leading positions for its publications. This strategy allows it to achieve better advertising sales and yields large economies of scale.

Good results in Switzerland

Edipresse Switzerland's turnover reached CHF 401 million (+8.4%).

The Group continues to strengthen its current titles and is overhauling them in turn. The two daily newspapers 24 Heures and /La Tribune de Genève were given a new look in 1999, with a favourable impact on circulation levels.

Less than two years after its launch, Le Temps, a daily newspaper owned 47% by Edipresse, has achieved remarkable success (52'434 copies sold each day, 83% by subscription) and has exceeded its objectives. Advertising has progressed strongly (+18.5%).

Given its desire to let its employees participate in the company's success, Edipresse has created a profit-sharing system. Consequently, more than CHF 3 million will be paid out to the workforce for the first time.

Strong growth abroad

Spain is the Group's largest market after Switzerland and in 1999 turnover reached CHF 148 million (+5.1%). Edipresse publishes more than 20 titles in this country and is number two in the magazine press sector. Three new launches are planned in 2000.

Turnover of the Group's Polish subsidiary has rocketed, ending the year up 42.6% at CHF 43 million. A new magazine will be added shortly to the six titles currently published by the Group in Poland.

In France, the agreement signed in autumn 1999 with the Excelsior Group (publisher, notably, of Biba, 20 ans, Science & Vie) led to the creation as equal partners of a jointly owned operating company, Ediexcel. Designed as a press venture focusing on health and fitness, the company is initially publishing each partner's magazines in this press segment: M Magazine (Edipresse) and Vital (Excelsior).

In Portugal and Greece, Edipresse operates through associated companies, which are leaders in their respective markets.

The Group owns 33.33% of ACJ - Abril Controljornal Edipresse in Lisbon, which has turnover in excess of CHF 142 million. In Greece, it holds 50% of the Liberis Publications group in Athens (CHF 42 million turnover). Together with this same Greek partner, Edipresse has set up a jointly owned holding company for Romania, Libedi Sàrl. At the end of 1999, it opened the most modern printing facility in the country near Bucharest.

Prospects for 2000

For 2000, Edipresse expects growth in its turnover and operating margins before costs associated with the launch of new titles and development expenses in respect of Edipresse Online, the Group's new electronic publishing division.

Contact us

For additional information, please contact:

Chritopher Bolton
Phone: +41 (0)21 349 45 26