Altex expects profit following €3.8 million in losses

The company posted €112 million (excluding VAT) in turnover in the first half of 2007, 25 percent higher year-on-year. Turnover estimates for this year are higher than a previous forecast of €275 million in sales. For 2008, Altex foresees turnover up €350 million, according to Altex Operational Manager, Adrian Urda.

“The change in technology, best seen in the light of a rise in LCD TV set sales, and the development of residential projects, have led to an increase in Altex sales,” the company’s President, Dan Ostahie, told a press conference yesterday.

During H1, Altex made investments worth €5 million and plans to invest a further €15 million by the end of the year to open four Media Galaxy stores in large cities (two in Cluj-Napoca, one in Iasi, and one in Targu-Mures) and a further four Altex Megastores. The selling area of the Media Galaxy stores will total some 12,000 sqm, bringing the entire store network to 48,000 sqm.

Furthermore, the company is to open five Altex Digital stores, with small sales surfaces, specializing in photo and video cameras and mobile phones. For 2008, Altex plans to open a further 10 Megastores.

Last year, the company posted net sales worth €212 million, while losses amounted to €4 million, according to data provided to the Ministry of Finance.
Founded in 1992 by Ostahie, the group owns 14 Media Galaxy stores, 80 Altex and Altex Megastore shops, and a further five Altex Digital stores.

Altex is currently market leader, with a 26 percent share. Its main competitors, Flamingo International and Domo, rank second (with an 18 percent share) and third (15 percent share), respectively.

Market
The household appliance, electronics and IT&C market is currently estimated to be worth some €800 million and is expected to rise to €900 million in 2008.