JCDecaux Sees 5.4% Revenue Increase
Outdoor advertising group, JCDecaux has revealed a 5.4% year on year increase in revenue for the first nine months of 2005, reaching €1,227.6 million, with organic revenues seeing a rise of 3.8% in the same time.
In the third quarter of this year, the group enjoyed growth of 5.2% year on year, hitting €393.9 million. Despite this increase, JCDecaux was hit by the slowdown of the advertising market, with the billboard market particularly affected. The results follow on from the sound performance the company experienced in the first half of 2005, with revenues rising by 5.7% year on year (see JCDecaux Announces Revenue Increase For First Half).
The group’s street furniture division increased revenues by 5.3% year on year in the first nine months of 2005, with revenues in Q3 up by 3.9% reaching €201.6.
The UK led the way in revenue progression, with Germany and Portugal also putting in a strong performance. The Americas and Asia Pacific contributed heavily to organic revenue growth, with difficult trading conditions continuing in Spain, the Netherlands and France.
Billboard revenue for the first nine months of the year decreased by 2.2% year on year, dropping to €310.4 million, reflecting a deterioration of the advertising conditions in the large European billboard markets.
Revenues in the third quarter declined by 6.4% to €96 million, with revenues down in the billboard markets of the UK and France, suffering from weak demand during the summer period.
Transport revenues saw a healthy rise during the first nine months of 2005, increasing by 16.5% year on year to reach €260.7 million.
Q3 saw revenues jump by 23.9% to €96.3 million, with double digit organic revenue growth achieved in a number of European countries including Spain, Norway and Germany.
Commenting on the third quarter revenues, Jean-Francois Decaux, chairman of the board and co-chief executive officer said: “In the third quarter of 2005, revenues reflected a deceleration in several European markets and economics, affecting primarily our Billboard division.”
He continued: “The moderate revenue growth of our Street Furniture division was mainly due to a sluggish French advertising market over the summer. This was partly offset by the strong development of our Asian activities and a healthy advertising market in the United States.”
Looking to the rest of 2005, JCDecaux expects organic revenue growth to be between 3.5% to 4%, with operating margin forecast to be slightly ahead of last year’s level, reflecting a decrease in France, the softening of the advertising market in other European countries and the higher revenue proportion from the lower margin Transport division.
JCDecaux: 020 7298 8000 www.jcdecaux.co.uk