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JCDecaux Announces Revenues For The Third Quarter 2001
  • Revenues Increased 11.0% to €360 million
  • Strong Performance from Street Furniture Reflects Resilient Business

November 5, 2001 – JCDecaux SA (Euronext Paris: DEC) today announced its revenues for the three months ended September 30, 2001, reporting an 11.0% increase to €360 million compared to the same period last year. These results are in line with the Company's comments at the time of its interim results in September. On a like-for-like basis, excluding acquisitions, revenues increased by 1.9%. For the nine months ended September 30, the Group's turnover increased by 10.8%, or 3.8% on a like-for- like basis, to €1,116 million. The results reflect the strong resilience of the Company's street furniture business, but also the increasingly difficult advertising environment affecting the billboard and transport divisions.

Street Furniture revenues increased by 14.5% to €178 million in the third quarter from €155 million in the same period last year. Excluding acquisitions, organic revenue growth was 10.9% in the period. Billboard revenues rose 11.1% to €99 million, but declined 6.8% on a like-for-like basis. Transport revenues grew by 4.2% to €84 million, but declined 5.8% on a like-for-like basis.

The Company has also announced today that it has won a 20 year street furniture contract for the City of Chicago, which is expected to generate advertising revenues of some € 850 million ($770 million) during the life of the contract. Chicago, with a population of approximately 3 million, is the third largest advertising market in the US and JCDecaux will be providing 2,000 bus shelters as well as newsstands, information kiosks and other street structures.

Commenting on the results, Jean-François Decaux, Chairman of the Board and Co-Chief Executive Officer, stated:

“Our third quarter performance highlights the attractiveness and resilience of our street furniture business, which achieved 10.9% organic growth and which reflects the quality of our assets. A factor which was also instrumental in the award of the very significant Chicago street furniture contracts – one of the largest to ever have been granted.

“As we stated at our interim results, we expect that Street Furniture, our largest division, 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%. However, given one of the most difficult advertising environments, it is now clear that the Billboard division will not record an improvement over the first half of 2001 and that the Transport division will show a significantly weaker performance in the second half of 2001, reflecting the tragic events of September 11 th . As a consequence, the Company expects to report a slight decline in its 2001 EBITDA compared to last year.

“We will continue our cost rationalisation programme - reflecting the synergies between our three divisions - which is expected to generate cost savings of approximately €20 million on an annualised basis in 2002. Following the completion of upgrade programmes in our French and UK billboard businesses, we intend to reduce capital expenditure in certain areas next year in light of the current depressed environment.”

Going forward, the Company remains confident that the outdoor sector will continue to gain advertising market share and that it will continue to outperform the global advertising market and grow faster than its major competitors.

Forward Looking Statement
Certain statements in this release constitute « forward-looking statements » within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The words or phrases « guidance », « expect », « anticipate », « estimates » and « forecast » and similar words or expressions are intended to identify such forward-looking statements. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. Various risks that could cause future results to differ from those expressed by the forward-looking statements included in this release include, but are not limited to : changes in economic conditions in the U.S. and in other countries in which JCDecaux currently does business (both general and relative to the advertising and entertainment industries) ; fluctuations in interest rates ; changes in industry conditions ; changes in operating performance ; shifts in population and other demographics ; changes in the level of competition for advertising dollars ; fluctuations in operating costs ; technological changes and innovations ; changes in labor conditions ; changes in governmental regulations and policies and actions of regulatory bodies ; fluctuations in exchange rates and currency values ; changes in tax rates ; changes in capital expenditure requirements and access to capital markets. Other key risks are described in the JCDecaux reports filed with the U.S. Securities and Exchange Commission. Except as otherwise stated in this news announcement, JCDecaux does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

Key Information on the Group:

  • Listed on Euronext Paris on 21 June 2001- From 26 November 2001,
  • JCDecaux will be part of the SBF 120 index
  • Sales in the first half of 2001 increased 10.7% to 755 million euros
  • 2000 sales of 1.4 billion euros (9.3 billion francs)
  • N°1 worldwide in street furniture
  • N°1 worldwide in airport advertising
  • N°1 in Europe for billboards
  • 583, 000 advertising faces in 37 countries
  • 7,400 employees across the world
  • Present in 3,200 cities with over 10,000 inhabitants

Note to editors – please refer to separate release regarding award of Chicago contract, released 5 November 2001

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