Complete Press Release with Financial Statements in PDF Format.
JCDecaux announces 2001 Full Year Results
Sound performance in Challenging Advertising Conditions
- Revenues increased 8.9% to €1,543.2 million
- EBITDA down 2.1% to €377.3 million
- Net earnings group share, before exceptional items decreased 11.1% to €16.0 million
- Street Furniture business drives revenue growth, providing strong margin resilience
18 March 2002 – JCDecaux SA (Euronext Paris : DEC) announced today its results for the full year 2001 and its outlook for the first half of 2002.
Consolidated revenues increased 8.9% to €1,543.2 million compared to 2000. On a like-for-like basis, excluding acquisitions, revenues increased by 1.0% over last year, outperforming both the outdoor and overall advertising markets. The increase in revenues primarily reflects the strong performance of the Company's Street Furniture business in all its key markets and the weak performance of Billboard and Transport businesses due to the depressed advertising market and the tragic events of last September.
Street Furniture revenues increased by 10.0% to € 798.2 million in 2001, from €725.8 million last year, and represented 51.7% of total revenues. Excluding acquisitions, organic revenue growth was 6.9% in 2001, significantly outperforming the overall advertising market in all key countries where JCDecaux operates. Growth was particularly strong in the UK (+12.8%) and in France (+6.1%), while advertising sales in the US shopping malls more than doubled, reflecting the continued commercial roll-out of the Mallscape business.
Billboard revenues rose 7.1% to €411.4 million in 2001 from €384.2 million in 2000. Excluding acquisitions, billboard revenues declined 9.0%, mainly driven by competitive price pressure in most markets.
Transport revenues increased by 8.6% to €333.6 million in 2001 compared to €307.1 million last year. Excluding acquisitions, revenues decreased by 0.6% in 2001 compared to last year, reflecting economic downturn and reduction in passenger traffic after September 11th.
EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 2.1% to €377.3 million compared to last year, in line with guidance previously communicated by the Group at the third quarter revenue announcement.
Street Furniture EBITDA improved 4.3% to €306.5 million in 2001, compared to €293.8 million last year. EBITDA margins remained strong at 38.4%. Excluding start-up losses from shopping malls in the US, the EBITDA margin in Street Furniture was 42% in 2001, compared to 44% in 2000. Billboard EBITDA was €47.8 million in 2001, a 28.1% decrease compared to last year (€66.5 million). EBITDA margin decreased to 11.6% from 17.3% last year, reflecting the previously mentioned pricing pressure. In Transport, EBITDA decreased by 16.5% to €23.1 million in 2001, compared to €27.6 million last year. Transport EBITDA margin decreased to 6.9% from 9.0% last year.
Net earnings (Group share), before exceptional items, declined 11.1% to €16.0 million compared to last year. Exceptional items in 2001 were €–5,8 million, reflecting the costs of restructuring the Group's operations in the US and the closing of the RCI subsidiary - the Group's non-core in-flight magazine advertising business acquired as part of Avenir - which were only partially offset by the sale of Avenir's headquarters building in the Paris area. These exceptional items reduced net earnings by €5.8 million to €10.2 million. In 2000, exceptional items had contributed positively for €2.4 million to net earnings.
After-Tax Cash Flow increased 22.1% to €263.1 million in 2001 versus €215.4 million last year.
Capital expenditure net of disposals was €252.1 million, compared to €243.5 million.
Net debt as at 31 December 2001 was €733.5 million, giving a net debt to equity ratio of 55%.
While the Company is cautious on the advertising sector in the first half of 2002, it remains confident in its ability to outperform the market.
Overall in the first quarter, organic revenue growth will be negative reflecting tough comparatives to the same period last year and the weakness of the transport division. In Street Furniture, organic revenue growth will be similar to that in the last quarter of 2001. Organic revenues in Billboards will be down slightly compared to the same period last year. Trading remains difficult in transport due to the negative effect of 11th September and organic revenues in the first quarter of 2002 will show a double-digit decline compared to the same period in 2001.
In Street Furniture, growth is likely to strengthen from the second quarter onwards with the division expected to achieve organic revenue growth of 2% in the first half compared to 1.6% growth in the last quarter of 2001. The US Mallscape business is expected to show a significant increase in revenues in the first half. In Billboards some key markets have started to improve and are currently trading ahead of last year, reflecting the benefits of the 2001 inventory upgrade and a stronger trading environment and therefore organic revenues are expected to match those achieved in the first six months of 2001. Organic Transport revenues are expected to show a double-digit decline compared to the first half of last year.
For the Group, the second half is expected to be stronger than the first.
Restructuring measures implemented in 2001 are expected to generate annualised cost savings of €20 million in 2002 and beyond. Moreover, the Group expects that it will benefit from the upgrade programmes of its billboard business in the French and UK markets, which were completed in 2001 and which should further contribute to growth in 2002 onwards.
The Company is well positioned to benefit from an advertising upturn as well as from its focus on the outdoor advertising market. Earlier contract wins, investment, acquisitions, partnerships and cost saving measures will all contribute to the Group's performance in the current year.
Commenting on the results, Jean-François Decaux, Chairman of the Executive Board and Co-Chief Executive Officer, said: « 2001 further established JCDecaux as a leading and worldwide outdoor advertising group. JCDecaux continued to outperform the market and its peers and the Group significantly expanded its coverage. We strengthened our position in the US, being awarded major contracts in Los Angeles and Chicago. In Europe we established major partnerships with Gewista in Austria and IGP in Italy. We also won significant contracts in major advertising markets around the world. Many of the achievements in 2001 will support the Group in 2002 and beyond.
“As far as 2002 is concerned, we expect to see continued organic growth in our Street Furniture business, confirming its ongoing resilience. While Billboard is improving, Transport continues to be difficult following 11th September but should improve in the second half when passenger numbers are expected to show a full recovery. We expect the overall outdoor industry to continue to outperform the global advertising market, with JCDecaux growing faster than the outdoor advertising sector.”
Key Information on the Group:
- Listed on Euronext Paris on 21 June 2001 and part of the SBF 120 index
- 2001 sales of €1.54 billion
- N°1 worldwide in street furniture
- N°1 worldwide in airport advertising
- N°1 in Europe for billboards
- 580, 000 advertising panels in 39 countries
- 7,400 employees worldwide
- Present in 3,300 cities with over 10,000 inhabitants
For further information, contact:
Tel: +33 (0)1 30 79 34 99
Fax: +33 (0)1 30 79 35 79
Tel: +33 (0)1 30 79 79 93
Fax: +33 (0)1 30 79 77 91
Financial DynamicsThe Company will hold its Annual Shareholders Meeting on May 23, 2002.
Tim Spratt / Charles Palmer
Tel: +44 207 831 3113
Forward Looking Statements
Certain statements in this release constitute « forward-looking statements ». 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. 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.