Letter to Shareholders
www.apgsga.ch
APG|SGA at a glance
141,091
analog & digital advertising spaces
32,399
campaigns carried out
Advertising revenue
CHF m
261.9 | 266.1 | 310.6 | 325.6 | 326.9 |
2020 | 2021 | 2022 | 2023 | 2024 |
EBITDA
CHF m
25.8 | 40.2 | 42.0 | 46.2 | |
22.5 | ||||
2020* | 2021 | 2022 | 2023 | 2024 |
9,606
active advertising customers
6,980
contracts & partnerships
517
EBIT
CHF m
15.3 | 29.4 | 31.8 | 36.5 | |
12.0 | ||||
2020* | 2021 | 2022 | 2023 | 2024 |
Consolidated net income
CHF m
9.5 | 12.7 | 23.4 | 26.8 | 30.3 |
2020* | 2021 | 2022 | 2023 | 2024 |
employees
Cash flow from operating activities
CHF m
32.7 | 18.3 | 35.0 | 41.0 | |
10.6 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
Earnings per share
CHF m
4.23 | 7.81 | 8.95 | 10.1 | |
3.18 | ||||
2020* | 2021 | 2022 | 2023 | 2024 |
*adjustd for one-time effects
APG|SGA SA Letter to shareholders March 13, 2025 3
Significant increase in consolidated net income.
Slight rise in advertising revenues amid a challenging environment.
Targeted expansion of the digital portfolio.
Dividend of CHF 12 per share for the 2024 financial year.
Recommended dividend distribution of 100% of consolidated net income for the financial years 2025 and 2026, with a minimum dividend of CHF 12 per share.
In brief
- Advertising revenues in Switzerland increase by 0.2% to CHF 311.8 million
- Advertising revenues in Serbia increase by 5.6% to CHF 15.2 million
- EBITDA margin: 13.9% (previous year: 12.8%)
- EBIT margin: 11.0% (previous year: 9.7%)
- Consolidated net income of CHF 30.3 million, increase of 12.9% (previous year: CHF 26.8 million)
- Free cash flow of CHF 37.3 million, increase of 19.2% (previous year: CHF 31.3 million)
Financial highlights
in 1 000 CHF | 2024 | 2023 | Change |
Advertising revenue | 326 945 | 325 632 | 0.4% |
- Switzerland | 311 795 | 311 292 | 0.2% |
- International | 15 150 | 14 340 | 5.6% |
Operating income | 332 826 | 328 758 | 1.2% |
EBITDA | 46 175 | 41 980 | 10.0% |
- in % of operating income | 13.9% | 12.8% | |
EBIT | 36 530 | 31 789 | 14.9% |
- in % of operating income | 11.0% | 9.7% | |
Consolidated net income | 30 275 | 26 815 | 12.9% |
- in % of operating income | 9.1% | 8.2% | |
Cash flow from operating activities | 40 986 | 35 042 | 17.0% |
Free cash flow1 | 37 345 | 31 325 | 19.2% |
Investments in property, plant, and equipment | 9 264 | 5 277 | 75.6% |
- advertising panel | 6 024 | 2 737 | 120.1% |
- other investments | 3 240 | 2 540 | 27.6% |
Earnings per share, in CHF | 10.10 | 8.95 | 12.8% |
EBITDA: Earnings before interest, taxes, depreciation of property, plant, and equipment, and amortization of intangible assets
EBIT: Earnings before interest and taxes
1 Cash flow from operating activities (operating cash flow) CHFt 40 986 (previous year: CHFt 35 042) less cash flow from investing activities CHFt 3 641
(previous year: CHFt 3 717)), (see page 10 Consolidated statement of cash flows)
4 APG|SGA SA Letter to shareholders March 13, 2025
Dear Shareholder
General business development
APG|SGA achieved a slight increase in revenues compared with a strong prior-year period that benefited from the additional stimulus of the Swiss parliamentary elections. This increase came despite a persistently
challenging economic environment and noticeable restraint in the Swiss advertising market, particularly in the second half of the year. Had it not been for the loss of the SBB promotional space business, revenue development would have been even more positive.
APG|SGAʼs services have a great impact on Out of Home Media, which - thanks to its compelling qualities as an efficient, high-reach advertising medium that enjoys broad acceptance and trust - further increased its market share in the media mix in 2024.
The pleasing development in the Digital Out of Home business continued with further targeted expansion in the range of digital and programmatic products in this area. We are constantly implementing measures for process, cost and structural optimization to counter a pronounced short-term orientation in the planning and processing of advertising campaigns, and for further consistent exploitation of the opportunities presented by advancing digital transformation and technological developments.
APG|SGA Group
Group revenue increased by 0.4% to CHF 326.9 million during the financial year 2024. Real estate revenue was CHF 1.8 million, in line with the previous year. Other operating income came to CHF 4.0 million and
included gains from the sale of a property and other tangible assets. This resulted in operating income for the financial year 2024 of CHF 332.8 million, representing an increase of 1.2% over the previous year.
Fees and commissions decreased in relation to advertising revenues in the reporting year. This reduction was driven by the end of the SBB promotional space business and better utilization of individual concession contracts. Personnel expenses increased by 0.9% compared with the prior-year period due to overall and performance-related wage adjustments and costs for temporary personnel. Operating and administrative costs increased by 2.6% in the reporting year. This cost development was driven by higher marketing, consultancy and energy costs.
In the financial year 2024, the EBITDA increased by 10.0% to reach CHF 46.2 million. Meanwhile, the EBIT increased by 14.9% to CHF 36.5 million in the financial year 2024, which corresponds to an EBIT margin for the year of 11.0% (previous year: 9.7%). Net income for the financial year 2024 amounted to CHF 30.3 million (previous year: CHF 26.8 million), an increase of 12.9%.
Cash flow
Operating cash flow for the financial year 2024 amounted to CHF 41.0 million (previous year: CHF 35.0 million). This represents an increase of 17.0%. After deducting the net cash used in investing activities of CHF 3.6 million (previous year: CHF 3.7 million), free cash flow amounted to CHF 37.3 million (previous year: CHF 31.3 million).
APG|SGA SA Letter to shareholders March 13, 2025 5
Balance sheet
The balance sheet total increased by CHF 2.1 million in the financial year 2024 to CHF 193.2 million. This increase was driven by higher cash and cash equivalents and higher trade accounts receivable. The net cash position at the end of 2024 was CHF 56.4 million, CHF 4.8 million higher than at the close of 2023. Equity totaled CHF 81.8 million, representing an equity ratio of 42.3%.
Swiss market
Amid a highly challenging environment, advertising revenues amounted to CHF 311.8 million, a slight increase of 0.2% above the previous year. This positive result came despite the loss of revenue from the SBB promotional space business and reduced revenues in the political advertising sector (federal parliamentary election in 2023), along with a persistent lull in the economy and consumer sentiment, which, after a pleasing start to the year, made itself felt in May, not only in APG|SGAʼs advertising revenues but in the market as a whole. This can be seen in the statistics for Switzerland issued by Media Focus, which point to a 0.6% decline in gross spend in the traditional advertising market compared to the previous year.
Yet APG|SGA revenues continued to experience positive growth, particularly in digital advertising media. This robust growth is due, on the one hand, to the fact that APG|SGA is providing advertisers with a growing digital portfolio and, on the other hand, to the fact that clients and their agencies appreciate the ability to
flexibly book and broadcast Digital Out of Home at short notice, along with its programmatic options.
Overall, APG|SGA experienced stable annual revenues from wholesale, retail chains and banks. The insur- ance, telecommunications and automotive sectors showed more restraint in investments in 2024. Meanwhile, there was significant growth in revenues in the culture, leisure/tourism, health insurance, beverage and clothing industries.
The attractiveness of the portfolio in the partner market underwent further expansion, with many key partnerships renewed, expanded or acquired. Overall, APG|SGA has a stable portfolio of around 7,000 contracts and partnerships secured for the long term with both public authorities and private property owners throughout Switzerland.
Serbian market
APG|SGA is operationally active in Serbia, which accounts for 4.6% of group sales. Local subsidiary Alma Quattro boasts an advertising inventory of over 4,500 sites in highly attractive locations, primarily in cities such as Belgrade, Novi Sad, Niš, Valjevo, Čačak, Užice and Kragujevac. Advertising revenues in the reporting period increased by 7.6% in local currency terms compared with the previous year. However, with the weaker dinar, this translated into an increase in Swiss francs of only 5.6%, to CHF 15.2 million.
The proceedings we brought against the Serbian state for infringement of the investment protection agreement between Switzerland and Serbia at the International Centre for the Settlement of Investment Disputes (ICSID) in Washington, D.C. continued as planned. A decision is expected in 2025.
Organization
At the APG|SGA SA General Meeting on April 25, 2024, all members standing for re-election were confirmed for a further year. Thus, the Board of Directors continues to comprise Dr. Daniel Hofer (Chair), Xavier Le Clef (Vice-Chair), David Bourg, Dr. Maya Bundt, Jolanda Grob and Markus Scheidegger. Jolanda Grob (Chair) and Markus Scheidegger were re-elected to the Board of Directorsʼ Remuneration Committee.
6 APG|SGA SA Letter to shareholders March 13, 2025
At the 2025 General Meeting, all current directors will be standing for re-election. In addition, the Board of Directors will propose to the General Meeting that it appoint a representative of what is now the largest shareholder to the Board - Dr. Felix Graf, CEO of NZZ.
On March 1, 2024, Nico Benz-Müller joined APG|SGA as the new CFO, replacing Beat Hermann, who departed at the end of April 2024.
Sustainability
The Sustainability Report, now in its 21st iteration, was published in May 2024. The report confirms that APG|SGA is on course to reach its ambitious climate targets, and now offers more detailed information than ever before on measures that the company has implemented as well as targets and initiatives under its comprehensive corporate social responsibility strategy. This report represents a milestone in numerous respects. It sets out how the company plans to meet the rising demands for sustainable business activities and transparency in the future and reinforces the leading role of APG|SGA. Furthermore, following the completion of an independent external audit, the company was certified by EcoEntreprise in June 2024. This certificate is
issued for exemplary performance in the field of sustainable development, including social responsibility.
Shareholder structure
Aktiengesellschaft für die Neue Zürcher Zeitung (NZZ) acquired a 25% stake from JCDecaux SE and Pargesa Asset Management SA on June 13, 2024. High quality standards, a long-term, value-oriented approach and outstanding knowledge of the Swiss business world make NZZ a welcome new APG|SGA shareholder in the eyes of the Board of Directors. JCDecaux SE and Pargesa Asset Management SA remain important share- holders, with stakes of 16.44% and 13.86% respectively.
Dividend
The Board of Directors will propose to the General Meeting that a dividend of CHF 12 per share be paid for the financial year 2024. The Board of Directors is convinced that the prospects for APG|SGA and the Out of Home market remain highly positive. At the same time, the company has a strong balance sheet and is ideally positioned to maintain its excellent operational performance in the coming years. As a result, the shareholder- friendly dividend policy is also set to continue. Therefore, if business allows, the Board of Directors intends to propose to the respective General Meetings a dividend payment of 100% of consolidated net income for the financial years 2025 and 2026, but no less than CHF 12 per share.
APG|SGA SA Letter to shareholders March 13, 2025 7
Outlook
In 2025, APG|SGA is celebrating a remarkable anniversary: 125 years of formative history and constant innovation in OOH and DOOH. Founded in Geneva in 1900, APG|SGA was first traded on the stock exchange in 1904, and in the decades since then has established itself as a market leader in the Swiss Out of Home Media market. With a strong tradition in the provision, marketing and management of high-quality advertising space and urban furniture in public areas, APG|SGA has consistently adapted to changing market conditions and technologies, and it continues to set new standards.
APG|SGA, with its subsidiaries in Switzerland and Serbia, now commands a broad portfolio of over 140,000 digital and traditional advertising spaces, which help international, national and local advertisers to reach their target groups effectively. We are a modern Out of Home Media company and are confident that, despite challenging market conditions and intense competition, we can further expand on our position as a formative market and innovation leader. In particular, consistent development of the digital service portfolio and targeted expansion of data and adtech solutions are set to further expand APG|SGAʼs competitive position in the advertising market.
At the same time, APG|SGA is a reliable contractual partner for cities, municipalities, transport authorities and private property owners, providing high-quality and sustainable services.
As much as we look back on our history with pride, we also look to the future with a driving ambition to continue shaping the future of Out of Home Media with innovative solutions and technologies. For advertisers who wish to execute successful branding and sales-boosting campaigns, Out of Home Media will remain a key element in communication planning in the future. Among all the different forms of advertising, the reach, impact, optimal carbon footprint and the best cost-benefit ratio make Out of Home Media an essential instrument in the media mix for advertisers and their agencies. Mobility and the forecast rise in the population are further positive factors for a constant increase in significance.
We would like to take this opportunity to thank our employees in every division of the company who contribute their extensive expertise and excellent performance to the successful future of Out of Home Media and
APG|SGA, and who offer our market partners a compelling range of products and services - especially in our anniversary year.
On behalf of the Board of Directors and the Executive Board, we would also like to thank our advertising customers, licensees and other market partners for their positive collaboration and, in particular, the shareholders for their trust in our company.
Dr. Daniel Hofer | Markus Ehrle |
Chairman of the Board | Chief Executive Officer |
8 APG|SGA SA Letter to shareholders March 13, 2025
Consolidated balance sheet
Assets
in 1 000 CHF | 31.12.2024 | 31.12.2023 |
Buildings and land | 24 523 | 25 120 |
Advertising panel | 18 019 | 17 082 |
Other property, plant, and equipment | 4 304 | 3 711 |
Property, plant, and equipment | 46 846 | 45 913 |
Deferred tax assets | 1 710 | 1 813 |
Other financial investments | 5 237 | 5 910 |
Financial investments | 6 947 | 7 723 |
Goodwill | 9 053 | 9 709 |
Contractual advertising rights | 10 041 | 10 899 |
Intangible fixed assets | 19 094 | 20 608 |
Non-current assets | 72 887 | 74 244 |
Inventories | 4 495 | 5 116 |
Trade accounts receivable | 42 613 | 40 197 |
Other accounts receivable | 8 961 | 9 461 |
Deferred expenses and accrued income | 7 841 | 10 489 |
Cash and cash equivalents | 56 411 | 51 603 |
Current assets | 120 321 | 116 866 |
Total | 193 208 | 191 110 |
Shareholdersʼ equity and liabilities
in 1 000 CHF | 31.12.2024 | 31.12.2023 |
Share capital | 7 800 | 7 800 |
Capital reserves, premiums | 13 102 | 13 028 |
Treasury shares | −560 | −864 |
Translation differences | −5 116 | −5 374 |
Retained earnings | 66 594 | 69 268 |
Shareholdersʼ equity | 81 820 | 83 858 |
Other non-current liabilities | 54 | 167 |
Provisions | 3 656 | 3 804 |
Deferred tax liabilities | 2 734 | 2 657 |
Non-current liabilities | 6 444 | 6 628 |
Trade accounts payable | 23 268 | 15 595 |
Taxes payable | 4 788 | 4 338 |
Other accounts payable | 30 398 | 31 636 |
Accrued liabilities and deferred income | 46 317 | 47 849 |
Provisions | 173 | 1 206 |
Current liabilities | 104 944 | 100 624 |
Liabilities | 111 388 | 107 252 |
Total | 193 208 | 191 110 |
APG|SGA SA Letter to shareholders March 13, 2025 9
Consolidated income statement
in 1 000 CHF | 2024 | 2023 | Change |
Advertising revenue | 326 945 | 325 632 | 0.4% |
Real estate revenue | 1 834 | 1 828 | 0.3% |
Other operating income | 4 047 | 1 298 | 211.7% |
Operating income | 332 826 | 328 758 | 1.2% |
Fees and commissions | −195 358 | −196 826 | −0.7% |
Personnel expenses | −58 464 | −57 968 | 0.9% |
Operating and administrative costs | −32 829 | −31 984 | 2.6% |
Operating result before depreciation and amortization (EBITDA) | 46 175 | 41 980 | 10.0% |
Depreciation of tangible assets | −7 921 | −8 488 | −6.7% |
Amortization of intangible assets | −1 067 | −1 046 | 2.0% |
Amortization of goodwill | −657 | −657 | |
Operating result (EBIT) | 36 530 | 31 789 | 14.9% |
Financial result | 521 | 99 | |
Ordinary result before income tax | 37 051 | 31 888 | 16.2% |
Income tax | −6 776 | −5 073 | 33.6% |
Consolidated net income | 30 275 | 26 815 | 12.9% |
Basic and diluted earnings per share, in CHF | 10.10 | 8.95 | 12.8% |
Consolidated statement of changes in equity
Capital | ||||||
in 1 000 CHF | Share capital | reserves, | Treasury | Translation | Retained | Shareholdersʼ |
premiums | shares | differences | earnings | equity | ||
as at January 1, 2023 | 7 800 | 13 034 | −894 | −4 109 | 75 393 | 91 224 |
Consolidated net income | 26 815 | 26 815 | ||||
Translation differences | −1 265 | −1 265 | ||||
Distributions | −32 940 | −32 940 | ||||
Purchase of treasury shares | −563 | −563 | ||||
Sale of treasury shares | 4 | 593 | 597 | |||
Equity transaction costs | −10 | −10 | ||||
as at December 31, 2023 | 7 800 | 13 028 | −864 | −5 374 | 69 268 | 83 858 |
Consolidated net income | 30 275 | 30 275 | ||||
Translation differences | 258 | 258 | ||||
Distributions | −32 949 | −32 949 | ||||
Purchase of treasury shares | −159 | −159 | ||||
Sale of treasury shares | 81 | 463 | 544 | |||
Equity transaction costs | −7 | −7 | ||||
as at December 31, 2024 | 7 800 | 13 102 | −560 | −5 116 | 66 594 | 81 820 |
10 APG|SGA SA Letter to shareholders March 13, 2025
Consolidated statement of cash flows
in 1 000 CHF | 2024 | 2023 |
Consolidated net income | 30 275 | 26 815 |
Depreciation and amortization | 9 645 | 10 191 |
Changes in provisions | −790 | −861 |
Changes in deferred taxes | 174 | −187 |
Financial result with no cash impact | −97 | 107 |
Gain from sale of non-current assets | −3 484 | −1 254 |
Change in inventories | 627 | −452 |
Change in accounts receivable | −1 808 | −4 110 |
Change in deferred expenses and accrued income | 2 721 | −5 694 |
Change in accounts payable and taxes payable | 4 999 | 9 130 |
Change in accrued liabilities and deferred income | −1 276 | 1 357 |
Cash flow from operating activities | 40 986 | 35 042 |
Capital expenditures in property, plant, and equipment | −7 515 | −5 055 |
Capital expenditures in intangible assets | −171 | −27 |
Sale of property, plant, and equipment | 3 946 | 1 365 |
Sale of other financial investments | 99 | |
Net cash used in investing activities | −3 641 | −3 717 |
Purchase of treasury shares | −158 | −563 |
Sale of treasury shares | 537 | 587 |
Dividends to APG SGA SA shareholders | −32 949 | −32 948 |
Net cash used in financing activities | −32 570 | −32 924 |
Currency translation effect on cash and cash equivalents | 33 | −109 |
Change in cash and cash equivalents | 4 808 | −1 708 |
Cash and cash equivalents as at January 1 | 51 603 | 53 311 |
Cash and cash equivalents as at December 31 | 56 411 | 51 603 |
Explanation of financial terms | ||
EBIT | Equity ratio | |
Earnings before interest and taxes | Shareholdersʼ equity in % of balance sheet total | |
EBITDA | Free cash flow | |
Earnings before interest, taxes, depreciation of property, plant and | Cash flow from operations minus cash flow from investments | |
equipment, | and amortization of intangible assets |