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JCDecaux Announces Results For First Half 2001
  • 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.

Business Developments
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.

Revenues
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 Europe.

EBITDA
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.

Net Income
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.

Prospects
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.