JC Decaux Sees 5.5% Increase In Revenues For First Half 2005
Outdoor advertising group, JC Decaux, has reported a 5.5% year on year increase in revenue for the first half of 2005, reaching €833.7 million worldwide.
In the group’s results posted today, JC Decaux revealed revenues to have increased by 5% in the first quarter to €454 million, compared to the same period last year. This growth is in line with the company’s previous expectations and reflects a good performance in its Street Furniture Division and the continued improvement in Transport.
Street Furniture revenues for the first six months of 2005 rose by 5.9% to €454.9 million, with revenues up by 4.5% in the second quarter year on year.
The market continued to be very robust in some European countries including Sweden and Finland, where double-digit revenue growth was reported, and in Spain and Germany were revenues grew in high single-digits for the second consecutive quarter. The UK and the Netherlands achieved a strong revenue performance. However, in France, revenue growth was flat, although core advertising revenues increased slightly.
Billboard revenues for the first half of the year decreased by 0.3% to €214.4 million, reflecting tougher advertising conditions in Q2 2005 in the French and UK markets. Q2 2005 saw revenues drop by 2.8% to €115.4 million, with revenues down in Belgium, Austria, Italy and Portugal against last year’s very high comparators and the benefits of Euro 2004. Revenues were flat in France and down in the UK compared to the second quarter last year.
Transport revenues for the first half of 2005 rose by 17.9% to 16.4 million, with the second quarter seeing an increase of 17.9% to 95.6 million.
Double-digit organic revenue growth was achieved in many European countries ,including the UK, Spain, Norway, Germany and Austria. However, business was more difficult in France, where revenues decreased year on year.
Commenting on the results for the first half of the year, Jean-Francois Decaux, chairman of the board and co-chief executive officer of JC Decaux said: “As anticipated, revenue growth in the second quarter was lower than in the first, mainly due to weaker advertising conditions in France and in the Billboard market in the UK.”
He continued: “Our good performance over the half year was driven by solid Street Furniture revenue growth and continued double-digit revenue improvement from our Transport division.”
The company is optimistic about the coming year, expecting to achieve organic revenue growth of around 4%, with a slower profit growth rate at operating levels, reflecting the first half revenue decreases in France and the higher revenue proportion from the lower margin Transport division.
JCDecaux: 020 7298 8000 www.jcdecaux.co.uk