Ad group Stroer's sales drop to €493 million |
|
Share With Members!
The advertising crisis did not hit hard on The Stroer Group, as the 2008 business year results unfolded with a slight three per cent decline in sales.
Germany's market leader for outdoor advertising and third top player in Europe said it was successfully holding its own against the advertising crisis.
Its sales dropped to €493 million (Dh2.5 billion) compared to the previous year. The fall is a combined result of decline in operational ebitda from €118m to €103m, effects of valuations and currency developments.
In autumn 2008, Stroer had already reacted to the advertising crisis with a group-wide cost cutting programme that effectively raised the operational ebitda by four per cent over the first four months of 2009. By the end of April, Stroer sales had declined slightly, by five per cent.
On an optimistic note, The Stroer Group expected 2009 to see stability, although slightly below the previous year's level, leading to an overall improvement in results.
The 2008 business year was characterised by the international economic crisis that made national advertising clients act with reluctance over the second half of the year. Stroer's sales declined by 3.5 per cent with regard to posters, as the biggest product group.
The European giant's poster business also dropped by 29.4 per cent.
For the transport product group, on the other hand, Ströer was able to increase sales by 8.2 per cent. The main factors in this development are the good booking situation of mostly regional advertising spaces on transport media in the domestic market, such as buses and trains, and digital out-of-home advertising in Germany and Poland.
The Ströer Group was able to achieve a significant increase in sales in Poland equivalent to 12 per cent in local currency, in addition to 22 per cent increase in Turkey (in Turkish currency) while the sales of Stroer Media Germany declined by 4.2 per cent. Despite opposite currency effects, the international business activities climbed to a share of nearly 20 per cent of overall group sales compared to 16 per cent in the previous year. In this context, StröerPoland achieved the strongest positive development of all, increasing the operational ebitda by 21.7 per cent.
Ströer increased the group's investments in 2008 by 46 per cent, to €62.2m - about half of the investments in Germany were spent on new city advertising spaces and street furniture.
"In 2008, we fought hard and successfully to stand up to the advertising crisis. In 2009, we will continue on this path, clearly focusing on our core markets," explains Udo Müller, CEO of Ströer.
"In addition to our cost cutting programme, which will have a positive effect in 2009, we have launched sales campaigns in Germany, Poland and Turkey. Since these markets were consolidated only recently, they still have potential even in the crisis. We want to seize the opportunity to increase the market share of outdoor advertising with regard to overall advertising budgets," said Müller.
"Besides Hamburg, the biggest investments were made in Turkish cities Istanbul and Ankara."
Ströer also advanced the Group's ongoing media digitalisation with the introduction of infoscreens on Warsaw's metro trains and with the installation of "Outdoor TV" in Turkey.
The newly developed programme is the first to create a network of screens on busy thoroughfares and in underground stations, which allows for the synchronisation of advertising messages above and under ground. Ströer also plans to promote the further development of moving images in out-of-home advertising with the introduction of "Outdoor TV".
By Staff Writer
© Emirates Business 24/7 2009
x
DISCLAIMER
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Community Comments (0) - 
Comment on this article 
Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
Loading ...
Zawya Comment Policy:
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Loading ...Community Buzz
Stories
Companies
Most viewed companies by Community in the last 24 hrs
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Zuhair Fayez Partnership Consultants | Saudi Arabia | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
| Roads and Transport Authority - Dubai | UAE | Regulatory and Administrative Bodies |
| Mubadala Development Company | UAE | Investment Firms and Funds |
| Ministry of Health - Saudi Arabia | Saudi Arabia | Ministries and Municipalities |
| Abu Dhabi Oil Refining Company | UAE | Oil |
| Qatar General Electricity and Water Corporation | Qatar | Electric Utilities |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Dubai Racing Club - Meydan City - Meydan Racecourse | UAE | Real Estate |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| IGD - Gasco - Habshan 5 Gas Processing Plant | UAE | Oil and Gas |