|JCDecaux Announces Revenues For The Third Quarter 2001|
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
Key Information on the Group:
Note to editors – please refer to separate release regarding award of Chicago contract, released 5 November 2001