Paris, 4 November 2008 – JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company in Europe and Asia-Pacific and the number two worldwide, announced today its revenues for the nine months ended 30 September 2008, reporting a 3.7% increase to €1,563.2 million compared to the same period last year. Excluding acquisitions and the impact of foreign exchange, organic revenues rose by 8.1% for the first nine months of 2008.
In the third quarter, revenues increased by 1.6% to €495.6 million. Excluding acquisitions and the impact of foreign exchange, organic revenues increased by 5.2%. Organic revenues grew faster than reported revenues due to a weaker British pound, US and Hong Kong dollar versus the euro compared to the same period last year. These revenues reflect the steady progression of Transport, which reached an 11.0% organic revenue growth rate in the quarter, the resilience of Street Furniture revenue growth and the continued weakness of Billboard. Organic revenue growth has been decelerating in all geographies, although no region reported a major shift in outdoor advertising spending.
Reported revenues
|
|
2008
|
2007
|
Change (%)
|
| (in million €)
|
Q1
|
Q2
|
Q3
|
9 months
|
Q1
|
Q2
|
Q3
|
9 months
|
Q308/07
|
9 months
08/07
|
| Street Furniture
|
238.6
|
287.9
|
232.1
|
758.6
|
239.0
|
271.3
|
227.1
|
737.4
|
2.2%
|
2.9%
|
| Transport
|
134.7
|
164.8
|
153.1
|
452.6
|
120.6
|
145.9
|
144.1
|
410.6
|
6.2%
|
10.2%
|
| Billboard
|
108.9
|
132.7
|
110.4
|
352.0
|
113.5
|
128.7
|
116.7
|
358.9
|
-5.4%
|
-1.9%
|
| Total Group
|
482.2
|
585.4
|
495.6
|
1,563.2
|
473.1
|
545.9
|
487.9
|
1,506.9
|
1.6%
|
3.7%
|
Organic growth(1)
|
|
Change (%)
|
| (in million €)
|
Q308/07
|
9 months
08/07
|
| Street Furniture
|
4.8%
|
5.8%
|
| Transport
|
11.0%
|
18.4%
|
| Billboard
|
-1.3%
|
1.2%
|
| Total Group
|
5.2%
|
8.1%
|
(1) excluding acquisitions/divestitures and the impact of foreign exchange
Street Furniture revenues for the first nine months of 2008 increased by 2.9% to €758.6 million. Excluding acquisitions and the impact of foreign exchange, organic revenues increased by 5.8%. Core advertising revenues, excluding revenues related to the sale, rental and maintenance of street furniture contracts, increased by 4.9% organically.
In the third quarter, revenues increased by 2.2% to €232.1 million (+4.8% on an organic basis) compared to the same period last year. Core advertising revenues, excluding revenues related to the sale, rental and maintenance of street furniture contracts rose by 3.7% organically.
With the exception of the United Kingdom, where market conditions remained difficult, positive organic revenue growth has been reported in all regions. Mid-single digit revenue growth was achieved in France despite a toughening advertising market. The Rest of Europe and North America also reported resilient performances with low to mid-single digit organic revenue growth. In the relatively small Middle Eastern and Australian markets significant growth was achieved during the third quarter.
Transport revenues for the first nine months of 2008 increased by 10.2% to €452.6 million. Excluding acquisitions and the impact of foreign exchange, organic revenues increased by 18.4% over the period.
In the third quarter, revenues increased by 6.2% to €153.1 million. Organic revenue growth reached 11.0% over the period. Strong double-digit revenue growth continued to be achieved in Asia Pacific, mainly in Greater China and India, while the Rest of Europe reported a robust high single-digit revenue growth rate driven by the increasing revenues from Brussels airport and the Scandinavian operations. The United Kingdom experienced flat and France negative organic growth rate on the back of high comparables in the third quarter of 2007 following the Rugby World Cup in France and a weaker environment. Organic revenue growth remained solid in North America although lower than in the first half of the year 2008 as the impact of the rising revenues from Los Angeles airport reduced.
Billboard revenues for the first nine months of 2008 decreased by 1.9% to €352.0 million. Excluding acquisitions and the impact of foreign exchange, organic revenues increased by 1.2% over the period.
In the third quarter, revenues decreased by 5.4% to €110.4 million (-1.3% on an organic basis). The Billboard division suffered from weak demand in September in the United Kingdom and in Southern Europe. Organic revenue growth also decelerated in France in part due to high comparables in the third quarter of 2007.
Commenting on the third quarter revenues, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO, said:
“As has been widely reported, advertising market conditions continued to deteriorate in the third quarter, particularly in developed countries while emerging markets have been less impacted. In this environment, the Group delivered a solid performance driven principally by its Transport division and its exposure to the Asia Pacific Region.
However, given recent further weakening in a number of advertising markets in the fourth quarter, we now expect JCDecaux’s organic revenue growth to be between 5.5 – 6% in 2008. As a result we currently anticipate the 2008 operating margin to be slightly below that achieved in 2007.
While it is clear that 2009 will be a challenging year for many sectors, we remain confident in the fundamentals of the JCDecaux Group and the outdoor industry. The quality of our people and assets, our expansion in new markets, strong balance sheet and tight cost control will allow us to continue to outperform the advertising market and take advantage of growth opportunities that might arise.”
Next information: 2008 Full Year Revenues on 29 January 2009, after market.
