Swiss-based media group Tamedia expects a "significant decline" in advertising revenue in 2002, while a senior executive reiterated the group expects lower profit in 2001 versus 2000.

The company said in a statement that the negative economic environment was depressing all advertising sectors especially its help-wanted advertising.

The Zurich-based company prints a range of German language publications, ranging from the daily Tages Anzeiger newspaper, the weekly Finanz and Wirtschaft business journal to poular magazines such as Facts and Schweizer Familie.

Tamedia also recently bought out Switzerland's largest private TV and radio stations, Tele 24 and Radio 24. This move forced the monopoly authorities to insist that Tamedia sell off some of its other broadcast interests in the Zurich region.

Tamedia says it has begun a hiring freeze and halted investment plans, and will seek ways to cut five per cent from its current costs.

But chief financial officer, Patrick Eberle said the group still expected a roughly SFr50 million ($30.98 million) net profit in 2001, about half of last year's SFr105.4 million.

"We still expect profits to be halved at around SFr50 million," he said.

He said however that revenue from advertising had declined in the third quarter versus the second, and the fourth quarter had not shown any improvement so far.

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