April 16, 2024
Full-Year 2016 revenue
- 2016 adjusted revenue up +5.8% to €3,392.8 million
- 2016 adjusted organic revenue up +3.3%
- Q4 2016 adjusted revenue down -0.1% to €982.8 million
- Q4 2016 adjusted organic revenue down -0.3%
- Paris
JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its revenue for the full-year 2016.
Following the adoption of IFRS 11 from 1st January, 2014, the operating data presented below is adjusted to include our prorata share in companies under joint control. Please refer to the paragraph “Adjusted data” on page 3 of this release for the definition of adjusted data and reconciliation with IFRS.
2016 adjusted revenue increased by +5.8% to €3,392.8 million compared to €3,207.6 million in 2015. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenue grew by +3.3%.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance, increased by +3.5% on an organic basis in 2016.
Adjusted revenue of the fourth quarter of 2016 decreased by -0.1% to €982.8 million compared to €983.9 million in Q4 2015. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenue decreased by -0.3%.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance, increased by +0.2% on an organic basis in the fourth quarter of 2016.
By activity:
(a) Excluding acquisitions/divestitures and the impact of foreign exchange
(a) Excluding acquisitions/divestitures and the impact of foreign exchange
By geographic area:
(a) Excluding acquisitions/divestitures and the impact of foreign exchange
(b) Excluding France and the United Kingdom
Please note that the geographic comments below refer to organic revenue growth.
STREET FURNITURE
Full-year adjusted revenue increased by +9.3% to €1,523.7 million (+5.2% on an organic basis). Europe (including France and the UK) delivered good growth driven by the digitisation of the world’s largest advertising bus shelters network in London where most of the 500 screens were installed in Q3 and Q4 2016. Asia-Pacific delivered good growth. North America was slightly up. The Rest of the World was up.
In the fourth quarter, adjusted revenue increased by +4.8% to €456.6 million (+3.8% on an organic basis). Europe (including France and the UK) and Asia-Pacific delivered good growth. The Rest of the World was up. North America delivered strong growth driven by the digitisation of our prime New York City street furniture locations including 5th Avenue which started in Q3 2016.
Fourth quarter adjusted advertising revenue, excluding revenue related to sale, rental and maintenance were up +4.1% on an organic basis compared to the fourth quarter of 2015.
TRANSPORT
Full-year adjusted revenue increased by +1.4% to €1,373.7 million (+2.1% on an organic basis). Asia-Pacific was flat mainly due to a significant slowdown in Greater China. Europe (including France and the UK) showed good growth. North America was slightly down. The Rest of the World delivered strong growth.
In the fourth quarter, adjusted revenue decreased by -6.5% to €387.3 million (-4.2% on an organic basis). Europe (including France and the UK) was up. North America delivered strong growth. Asia-Pacific and the Rest of the World were down.
BILLBOARD
Full-year adjusted revenue increased by +8.2% to €495.4 million (+0.9% on an organic basis). Europe (including France and the UK) was flat. The Rest of the World posted good growth, thanks to Russia.
In the fourth quarter, adjusted revenue increased by +3.6% to €138.9 million (-1.7% on an organic basis). Europe (including France and the UK) and the Rest of the World saw negative growth.
Commenting on the Group’s 2016 revenue performance, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
“JCDecaux achieved another year of record revenue at 3,392.8 million euros, with an organic growth rate of +3.3%. We ended 2016 better than expected, with a negative organic growth of -0.3% in Q4 thanks to a better performance in Asia-Pacific and in the Rest of Europe.
For the first time since 2010, our 3 business segments posted an annual positive organic growth. Street Furniture with a +5.2% organic growth was driven by an increasing digitisation of our prime locations, mainly in London and New York City. Transport posted a positive organic growth at +2.1% despite a significant slowdown in Greater China over the year. Billboard recorded a +0.9% organic growth thanks to a positive performance in France and a strong recovery in Russia.
We continue to benefit from our faster-growth markets exposure, above 35% of our Group revenue, as well as a strong digital premium portfolio representing now 12.9% of our Group revenue, with a growing contribution from our Street Furniture segment.
2016 was also marked by a number of strategic developments such as the award of the 15-year contract of Tokyo bus shelters, where MCDecaux now holds exclusive rights to the sale of advertising for almost all the bus shelters, and the renewal of Paris’ newsstands. We also won Dallas Fort-Worth International Airport with 75% of digital advertising displays and extended Hong Kong and Changi airport concessions. As we continue to consolidate the outdoor advertising market in Latin America, we successfully integrated OUTFRONT Media Latam since April 2016 and we recently announced our merger with Top Media in Central America to strengthen our leading position in the region, where outdoor advertising is expected to see solid growth in the coming years.
As usual, we will provide guidance for Q1 when we release our full-year 2016 results on 2nd March 2017.
In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well-diversified exposure to faster-growth markets, an increasing presence in the most influential cities in the world¹, our growing premium digital portfolio combined with a new data-led audience targeting platform, our ability to win new contracts and the high quality of our teams across the world, we believe we are well positioned to outperform the advertising market and increase our leadership position in the outdoor advertising industry through profitable market share gains. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.”
ADJUSTED DATA
Under IFRS 11, applicable from 1st January, 2014, companies under joint control are accounted for using the equity method.
However in order to reflect the business reality of the Group, operating data of the companies under joint control continue to be proportionately integrated in the operating management reports used to monitor the activity, allocate resources and measure performance.
Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements complies with the Group’s internal information, and the Group’s external financial communication therefore relies on this operating financial information. Financial information and comments are therefore based on “adjusted” data which are reconciled with IFRS financial statements.
In Q4 2016, the impact of IFRS 11 on adjusted revenue was -€121.2 million (-€125.4 million in Q4 2015), leaving IFRS revenue at €861.6 million (€858.5 million in Q4 2015).
For the full-year 2016, the impact of IFRS 11 on adjusted revenue was -€418.3 million (-€400.5 million for the full-year 2015), leaving IFRS revenue at €2,974.5 million (€2,807.1 million for the full-year 2015).
ORGANIC GROWTH DEFINITION
The Group’s organic growth corresponds to the adjusted revenue growth excluding foreign exchange impact and perimeter effect. The reference fiscal year remains unchanged regarding the reported figures, and the organic growth is calculated by converting the revenue of the current fiscal year at the average exchange rates of the previous year and taking into account the perimeter variations prorata temporis, but including revenue variations from the gains of new contracts and the losses of contracts previously held in our portfolio.
(1) According to Forbes 2014 ranking.
In order to quantify cities’ global influence, Forbes looked at eight factors: the amount of foreign direct investment they have attracted; the concentration of corporate headquarters; how many particular business niches they dominate; air connectivity (ease of travel to other global cities); strength of producer services; financial services; technology and media power; and racial diversity.
Next information:
2016 annual results: 2nd March, 2017 (before market)
Forward looking statements
This news release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.
These risks and uncertainties include without limitation the risk factors that are described in the annual report registered in France with the French Autorité des Marchés Financiers.
Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org or directly on the Company website www.jcdecaux.com.
The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.
Following the adoption of IFRS 11 from 1st January, 2014, the operating data presented below is adjusted to include our prorata share in companies under joint control. Please refer to the paragraph “Adjusted data” on page 3 of this release for the definition of adjusted data and reconciliation with IFRS.
2016 adjusted revenue increased by +5.8% to €3,392.8 million compared to €3,207.6 million in 2015. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenue grew by +3.3%.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance, increased by +3.5% on an organic basis in 2016.
Adjusted revenue of the fourth quarter of 2016 decreased by -0.1% to €982.8 million compared to €983.9 million in Q4 2015. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenue decreased by -0.3%.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance, increased by +0.2% on an organic basis in the fourth quarter of 2016.
By activity:
| Full-Year adjusted revenue | 2016 (€m) | 2015 (€m) | Reported growth | Organic growth (a) |
|---|---|---|---|---|
| Street Furniture | 1,523.7 | 1,394.3 | +9.3% | +5.2% |
| Transport | 1,373.7 | 1,355.4 | +1.4% | +2.1% |
| Billboard | 495.4 | 457.9 | +8.2% | +0.9% |
| Total | 3,392.8 | 3,207.6 | +5.8% | +3.3% |
| Q4 adjusted revenue | 2016 (€m) | 2015 (€m) | Reported growth | Organic growth (a) |
|---|---|---|---|---|
| Street Furniture | 456.6 | 435.6 | +4.8% | +3.8% |
| Transport | 387.3 | 414.2 | -6.5% | -4.2% |
| Billboard | 138.9 | 134.1 | +3.6% | -1.7% |
| Total | 982.8 | 983.9 | -0.1% | -0.3% |
By geographic area:
| Full-Year adjusted revenue | 2016 (€m) | 2015 (€m) | Reported growth | Organic growth (a) |
|---|---|---|---|---|
| Europe (b) | 886.2 | 829.8 | +6.8% | -0.3% |
| Asia-Pacific | 819.3 | 832.6 | -1.6% | +1.1% |
| France | 628.8 | 613.5 | +2.5% | +2.5% |
| Rest of the World | 405.3 | 335.0 | +21.0% | +6.3% |
| United Kingdom | 382.2 | 369.6 | +3.4% | +16.4% |
| North America | 271.0 | 227.1 | +19.3% | +0.3% |
| Total | 3,392.8 | 3,207.6 | +5.8% | +3.3% |
(b) Excluding France and the United Kingdom
Please note that the geographic comments below refer to organic revenue growth.
STREET FURNITURE
Full-year adjusted revenue increased by +9.3% to €1,523.7 million (+5.2% on an organic basis). Europe (including France and the UK) delivered good growth driven by the digitisation of the world’s largest advertising bus shelters network in London where most of the 500 screens were installed in Q3 and Q4 2016. Asia-Pacific delivered good growth. North America was slightly up. The Rest of the World was up.
In the fourth quarter, adjusted revenue increased by +4.8% to €456.6 million (+3.8% on an organic basis). Europe (including France and the UK) and Asia-Pacific delivered good growth. The Rest of the World was up. North America delivered strong growth driven by the digitisation of our prime New York City street furniture locations including 5th Avenue which started in Q3 2016.
Fourth quarter adjusted advertising revenue, excluding revenue related to sale, rental and maintenance were up +4.1% on an organic basis compared to the fourth quarter of 2015.
TRANSPORT
Full-year adjusted revenue increased by +1.4% to €1,373.7 million (+2.1% on an organic basis). Asia-Pacific was flat mainly due to a significant slowdown in Greater China. Europe (including France and the UK) showed good growth. North America was slightly down. The Rest of the World delivered strong growth.
In the fourth quarter, adjusted revenue decreased by -6.5% to €387.3 million (-4.2% on an organic basis). Europe (including France and the UK) was up. North America delivered strong growth. Asia-Pacific and the Rest of the World were down.
BILLBOARD
Full-year adjusted revenue increased by +8.2% to €495.4 million (+0.9% on an organic basis). Europe (including France and the UK) was flat. The Rest of the World posted good growth, thanks to Russia.
In the fourth quarter, adjusted revenue increased by +3.6% to €138.9 million (-1.7% on an organic basis). Europe (including France and the UK) and the Rest of the World saw negative growth.
Commenting on the Group’s 2016 revenue performance, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
“JCDecaux achieved another year of record revenue at 3,392.8 million euros, with an organic growth rate of +3.3%. We ended 2016 better than expected, with a negative organic growth of -0.3% in Q4 thanks to a better performance in Asia-Pacific and in the Rest of Europe.
For the first time since 2010, our 3 business segments posted an annual positive organic growth. Street Furniture with a +5.2% organic growth was driven by an increasing digitisation of our prime locations, mainly in London and New York City. Transport posted a positive organic growth at +2.1% despite a significant slowdown in Greater China over the year. Billboard recorded a +0.9% organic growth thanks to a positive performance in France and a strong recovery in Russia.
We continue to benefit from our faster-growth markets exposure, above 35% of our Group revenue, as well as a strong digital premium portfolio representing now 12.9% of our Group revenue, with a growing contribution from our Street Furniture segment.
2016 was also marked by a number of strategic developments such as the award of the 15-year contract of Tokyo bus shelters, where MCDecaux now holds exclusive rights to the sale of advertising for almost all the bus shelters, and the renewal of Paris’ newsstands. We also won Dallas Fort-Worth International Airport with 75% of digital advertising displays and extended Hong Kong and Changi airport concessions. As we continue to consolidate the outdoor advertising market in Latin America, we successfully integrated OUTFRONT Media Latam since April 2016 and we recently announced our merger with Top Media in Central America to strengthen our leading position in the region, where outdoor advertising is expected to see solid growth in the coming years.
As usual, we will provide guidance for Q1 when we release our full-year 2016 results on 2nd March 2017.
In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well-diversified exposure to faster-growth markets, an increasing presence in the most influential cities in the world¹, our growing premium digital portfolio combined with a new data-led audience targeting platform, our ability to win new contracts and the high quality of our teams across the world, we believe we are well positioned to outperform the advertising market and increase our leadership position in the outdoor advertising industry through profitable market share gains. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.”
ADJUSTED DATA
Under IFRS 11, applicable from 1st January, 2014, companies under joint control are accounted for using the equity method.
However in order to reflect the business reality of the Group, operating data of the companies under joint control continue to be proportionately integrated in the operating management reports used to monitor the activity, allocate resources and measure performance.
Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements complies with the Group’s internal information, and the Group’s external financial communication therefore relies on this operating financial information. Financial information and comments are therefore based on “adjusted” data which are reconciled with IFRS financial statements.
In Q4 2016, the impact of IFRS 11 on adjusted revenue was -€121.2 million (-€125.4 million in Q4 2015), leaving IFRS revenue at €861.6 million (€858.5 million in Q4 2015).
For the full-year 2016, the impact of IFRS 11 on adjusted revenue was -€418.3 million (-€400.5 million for the full-year 2015), leaving IFRS revenue at €2,974.5 million (€2,807.1 million for the full-year 2015).
ORGANIC GROWTH DEFINITION
The Group’s organic growth corresponds to the adjusted revenue growth excluding foreign exchange impact and perimeter effect. The reference fiscal year remains unchanged regarding the reported figures, and the organic growth is calculated by converting the revenue of the current fiscal year at the average exchange rates of the previous year and taking into account the perimeter variations prorata temporis, but including revenue variations from the gains of new contracts and the losses of contracts previously held in our portfolio.
(1) According to Forbes 2014 ranking.
In order to quantify cities’ global influence, Forbes looked at eight factors: the amount of foreign direct investment they have attracted; the concentration of corporate headquarters; how many particular business niches they dominate; air connectivity (ease of travel to other global cities); strength of producer services; financial services; technology and media power; and racial diversity.
Next information:
2016 annual results: 2nd March, 2017 (before market)
Forward looking statements
This news release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.
These risks and uncertainties include without limitation the risk factors that are described in the annual report registered in France with the French Autorité des Marchés Financiers.
Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org or directly on the Company website www.jcdecaux.com.
The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.
Key figures
- 2016 revenue: €3,392.8m
- JCDecaux is listed on the Eurolist of Euronext Paris and is part of the Euronext 100 index
- JCDecaux is part of the FTSE4Good and Dow Jones Sustainability Europe indexes
- N°1 worldwide in street furniture (524,580 advertising panels)
- N°1 worldwide in transport advertising with more than 230 airports and 280 contracts in metros, buses, trains and tramways (395,770 advertising panels)
- N°1 in Europe for billboards (177,760 advertising panels)
- N°1 in outdoor advertising in Europe (731,390 advertising panels)
- N°1 in outdoor advertising in Asia-Pacific (236,760 advertising panels)
- N°1 in outdoor advertising in Latin America (62,860 advertising panels)
- N°1 in outdoor advertising in Africa (32,840 advertising panels)
- N°1 in outdoor advertising in the Middle-East (16,280 advertising panels)
- N°1 worldwide for self-service bicycle hire: pioneer in eco-friendly mobility
- 1,129,410 advertising panels in more than 75 countries
- Present in 4,435 cities with more than 10,000 inhabitants
- Daily audience: more than 390 million people
- 12,850 employees