The country's leading media company, Publigroupe, is forecasting large losses for the year as a whole due to a downturn in advertising revenue and higher-than-expected restructuring costs.This content was published on October 31, 2001 - 09:41
In September, the Lausanne-based company had said it expected to make a profit of around SFr25 million ($15.4 million) but the current economic uncertainty forecast Wednesday's revision. Profit last year was SFr140 million.
Publigroupe also announced the intended divestment of its United States unit, Real Media Group, to 24/7 Media in return for a 15 per cent state in 24/7.
"Based on these economic and exceptional factors, Publigroupe will post a substantial loss for the 2001 business year," said a statement from the firm.
It added that it expected to return to profit in 2002 when one-off costs would not be repeated. It said its advertising business remained fundamentally healthy.
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