- Total Revenues Increased 10.7% to €755.1 million
- Growth Driven by Street Furniture Business which Strongly Outperforms the Media Market
September 19, 2001 – JCDecaux SA (Euronext Paris : DEC) announced today its results for
the six months ended June 30, 2001, reporting a 10.7% increase in revenues to €755.1 million
compared to the same period last year. On a like-for-like basis, excluding acquisitions,
revenues increased by approximately 5.0% over the same period last year. The increase in
revenues primarily reflects the strong performance of the Company's street furniture business
in all its key markets, as well as a good performance in its transport advertising business.
EBITDA (earnings before interest, tax, depreciation and amortization), the most accurate
reflection of the Group's performance, increased 1.9% to €199.6 million compared to the
same period last year.
Commenting on the results, Jean-François Decaux, Chairman of the Board and Co-Chief
Executive Officer, stated : « We have achieved a continued strong performance in our street
furniture business which, once again, demonstrated its resilience in times of advertising
slowdown, and reflects the quality of our portfolio and the opportunities in this area of the
outdoor market. We also achieved good growth in our transport advertising division. Our
billboard business was directly impacted by the slowdown in advertising spend, which affected
both revenues and margins.
Looking ahead, we expect that the outdoor industry will continue to outperform the global
advertising market and that JCDecaux will continue to grow faster than the outdoor advertising
sector, based on our leading competitive positions in all our markets, particularly in street
furniture. In the current challenging environment, we will also continue to seek every
opportunity to further rationalize costs within the enlarged Group to enhance profitability.
In the first half of 2001, JCDecaux entered into partnership agreements with Gewista, the
leading Austrian outdoor advertising group, and IGP, Italy's leading outdoor advertising group.
It has also acquired TDI Media Norge, the number one transport advertising company in
Norway, as well as Maximedia Oy and Red, the leading billboard companies in Finland and
Portugal, respectively. These transactions have further strengthened the Group's portfolio of
street furniture and transport advertising concessions and have established it as the largest
billboard operator in Europe. In July, the Company's joint bid with Viacom was selected by
the City of Los Angeles for a landmark, 20-year street furniture contract.
Street Furniture revenues increased by 10.7% to €397.5 million in the first half of 2001, from
€359.0 million in the same period last year, and represented 52.6% of total revenues.
Excluding acquisitions, organic revenue growth was 8.3% in the period, significantly
outperforming the overall advertising market in all countries where JCDecaux operates.
Growth was particularly strong in France (+8.1%) and the rest of continental Europe (+9.1%),
while advertising sales in the US shopping malls more than doubled, reflecting the continued
commercial rollout of the Mallscape business.
Billboard revenues rose 5.0% to €199.1 million from €189.7 million. Excluding acquisitions,
the billboard revenues declined 7.8%, mainly driven by competitive price pressure in all
geographic markets. Transport revenues increased by 18.6% to €158.4 million, compared to
€133.6 million in the same period last year. Excluding acquisitions, organic growth remained
very strong at 12.7%, reflecting the strong performance of the airport business all across
Street Furniture EBITDA improved 7.7% to €166.1 million in the first half of 2001, compared
to €154.2 million in the first six months of last year. EBITDA margins continued to be strong at
41.8% and, excluding operating losses from shopping malls in the US attributable to the early
phase of operations of this business, the EBITDA margin in street furniture was 45% in the
first half 2001. Billboard EBITDA was €20.4 million in the first half of 2001, a 34.9%
decrease compared to the same period last year (€ 31.4 million). EBITDA margin decreased
to 10.3% from 16.5% in the same period last year, primarily reflecting pricing pressure in this
area of the outdoor market. In Transport, EBITDA increased by 27.1% to €13.1 million in the
first half of 2001, compared to €10.3 million in the same period last year. The EBITDA margin
increased to 8.2% from 7.7% for the same period last year.
For the first half 2001, net income amounted to €11.0 million compared to €24.7 million for the
same period last year. The level of depreciation and amortization, including goodwill
amortization, in the first half of 2000, did not reflect the investments and acquisitions made by
the Company since July 1, 2000.
The Company is confident that its growth will continue to outperform that of the global
advertising market, thanks in large part to its focus on the outdoor advertising sector and to
street furniture in particular, which is expected to grow faster than other media and prove
more resilient. Despite the further downturn in the advertising market since July and the
reduced visibility across all geographies following the tragic events in the US last week, the
Company expects to report double-digit revenue growth in the third quarter, in line with that
achieved in the first half of 2001. The Company expects that its largest division, Street
Furniture, will continue to offer greater visibility than other media and outperform both the
media and outdoor markets with revenue growth over 2001 expected to be between 8 % and
10%. The Billboard business is unlikely to record an improvement and the Transport business
is likely to show a significantly weaker performance in the second half of 2001.