Third quarter reported revenues up 10.2% to €636.0m
Third quarter organic revenues up 2.7%
Organic revenue for Q4 expected to be slightly down
Organic revenue growth for FY12 expected to be around 1%
- Paris, 7 November 2012 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its revenues for the three months ended 30 September, 2012.
- On a reported basis, third quarter revenues increased 10.2% to €636.0 million from €577.1 million in the same period last year. Despite tough comparables (8.4% in Q3 2011), organic growth was 2.7%, driven by the strength of the Transport division particularly in the UK, helped by the Olympics, together with Asia and the Rest of the World. In Street Furniture, solid growth in France was offset by the weakness of most other European geographies. With the exception of the UK, Billboard remained difficult across most European markets. Core advertising revenues, excluding revenues relating to the sale, rental and maintenance of street furniture products grew 2.8% organically in the third quarter.
- Reported revenues for the first nine months of 2012 increased by 7.4% to €1,876.2 million compared to €1,747.1 million in the same period last year. Excluding acquisitions and the impact of foreign exchange, organic revenues increased by 2.0% during the first nine months of 2012.
- Street Furniture
- In the third quarter, reported revenues were flat at €260.3 million compared with the same period last year (organic growth: -2.5%). The decline in organic growth reflects difficult conditions in most northern European countries including Germany and also southern Europe which posted a double digit decrease in revenues. This was partially offset by France, and by our fast growing markets which continued to perform well in the third quarter. Core organic advertising revenues decreased by 3.4% compared to the third quarter of 2011.
- Revenues grew by 21.3% to €268.4 million from €221.3 million in the third quarter of last year (organic growth: 10.1%). This was driven by the Olympic Games in the UK and by Greater China which saw double digit growth. France and the Rest of Europe were broadly flat. As highlighted during our H1 results, North America continues to be impacted by the non-renewal of certain long-term advertising campaigns.
- Revenues for the third quarter increased by 12.5% (-0.3% on an organic basis) to €107.3 million compared to €95.4 million in the same period last year. The difference between reported and organic growth is mainly due to the redistribution of certain panels into the Billboard segment following a legal reorganization of the French business.
- The UK saw a significant uplift from the Olympic Games and posted double-digit growth in the third quarter. Other geographies remained difficult with France and the Rest of Europe seeing single digit revenue declines.
- Commenting on the third quarter revenues, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said: “Our Q3 organic revenue growth of 2.7% was better than expected due to a stronger September in our major markets. Revenues in the third quarter of €636 million benefited from the Olympic Games in the UK and the Motor Show in France while Asia and the Rest of the World remained strong but the Rest of Europe weak. As a result Street Furniture and Billboard revenues declined while Transport showed double-digit growth.
- We continue to expect good growth in Asia and the Rest of the World in Q4. However, we see some weakening of the media market in France and the Rest of Europe, despite a better performance in Germany. As such, we expect organic revenue to be slightly down in Q4, leaving the full year at around 1%.
- Looking forward, we remain convinced that out of home retains its strength and attractiveness in an increasingly fragmented media landscape. With our accelerating exposure to fast growing markets, our growing digital portfolio, 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. We were particularly pleased to be able to announce in October the projected acquisition of 25% of Russ Outdoor, the largest outdoor advertising company in Russia, and the win of a 25-year contract for digital advertising clocks in São Paulo. This illustrates well the consistency of the Group in pursuing its strategic goals and expanding its presence in fast growing markets. The strength of our balance sheet is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.”
Next information: Q4 2012 revenues: 24 January 2013 (after 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.
- 2013 revenues: €2,676m
- JCDecaux is listed on the Eurolist of Euronext Paris and is part of the Euronext 100 index
- No.1 worldwide in street furniture (480,400 advertising panels)
- No.1 worldwide in transport advertising with more than 145 airports and more than 276
- contracts in metros, buses, trains and tramways (379,000 advertising panels)
- No.1 in Europe for billboards (191,000 advertising panels)
- No.1 in outdoor advertising in the Asia-Pacific region (211,400 advertising panels)
- No.1 in outdoor advertising in Latin America (30,000 advertising panels)
- No.1 worldwide for self-service bicycle hire
- 1,082,400 advertising panels in more than 60 countries
- Present in 3,700 cities with more than 10,000 inhabitants
- 12,000 employees