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|First half 2002: Revenues increased 3.3% to €779.9 million driven by sound organic growth in the second quarter|
|25 July, 2002 - JCDecaux SA (Euronext Paris: DEC) today announced its
revenues for the six months ended 30 June 2002, reporting a 3.3% increase to
779.9 million compared to the same period last year. Excluding acquisitions,
revenues decreased by 0.9%, reflecting continued weakness in the Transport
division. These revenue figures are in line with the Company´s expectations and
comments at the time of its first quarter revenue announcement in April.|
Street Furniture revenues increased by 5% to 417.2 million in the first six months of 2002 from 397.5 million in the same period last year. Excluding acquisitions, organic revenue growth was 3.9% in the period, a good performance on top of the 8.3% organic growth recorded in the first half of 2001. US shopping malls recorded good advertising sales growth as the medium continued to gain in popularity among advertisers seeking tightly targeted retail advertising. As the largest division, Street Furniture continued to drive the Company´s performance.
Billboard revenues rose 9,6% to 218.2 million from 199.1 million in the same period last year and grew 1.4% on an organic basis. Early signs of improvement in the Billboard division were reflected in good performances in Spain, Ireland and the Gewista subsidiaries in Central Europe. In the UK, the division comfortably outperformed the market reflecting prior investments in the quality of the estate and scrolling panels.
Transport revenues declined 8.9% to 144.5 million from 158.5 million in the first half of 2001, representing a 15.9% reduction on an organic basis. The division, primarily comprising airport advertising, continued to suffer from a difficult environment following the consequences of September 11, 2001.
Jean-Charles Decaux, Chairman of the Board and Co-Chief Executive Officer, said: "In advertising conditions which continued to be challenging, this was a resilient performance supported by sound organic growth in the second quarter. Our largest business, Street Furniture continued to make good progress in the outdoor market. Billboard revenue growth was encouraging, reflecting our expansion in Central Europe through our partnership with Gewista and also previous investment in our estate. Airport advertising continued to be difficult following 11 September and the subsequent reduction in passenger numbers".
"Looking ahead, we would expect the Group´s revenues in the second half of the year to be broadly in line with the first. While remaining cautious on the advertising market as a whole, Street Furniture visibility remains positive and there are early signs of improvement in Billboard. However we do not expect to see a recovery in Transport until 2003. We believe strongly that the company is well positioned to benefit from any advertising upturn in the coming months or in 2003, continuing to outperform both the advertising market as a whole and the outdoor advertising market".
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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 con ditions ; 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.