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Spir stabilizes its margin despite a further fall in sales

Spir Communication has again suffered in the first half of the decline in sales in the free advertising press, but cost reductions have allowed it to stabilize its margin.

The media group and distribution of printed materials and packages still struggling to develop its model based on formerly free press announcements, but he expects further restructuring to achieve its objective of restoring the balance operational 2010.

Spir has declined by about 10% of its total turnover in the first half to 280.7 million euros, with a fall of 15% of cluster media, press and internet, and 6% of the segment distribution of printed advertising.

"In the context of an advertising market remains uncertain, Spir Communication is continuing its transformation and is maintaining its target for operating profit to breakeven in the year 2010," the group wrote in a statement.

The operating margin improved slightly semester to 1.7% (+0.2 points) thanks to cost efficiencies, including through a plan for adapting the press division, started in 2009, which reduced by 22% operating losses of this segment in the first half.

The group aims to reduce the share of sales made in the traditional activities of the press free to print ads in favor of a growth in Internet sales.

The press had in the first half for nearly 30% of total turnover, against 12% for sales generated by the division of Internet media.

The action Spir stable closed Tuesday at 16.40 euros in a market capitalization of just over 100 million euros.