JCDecaux Performs Ahead Of Expectations
Outdoor advertising giant JCDecaux has announced an increase of 5.7% in revenues, totalling €1,631.4, revealing a strong performance in the second half of the year with organic revenues increasing by 6.8%.
The solid results are better than the company expected, driven by strong organic revenue performance in all divisions, particularly in transport, where the business has reported double-digit organic growth since the second quarter.
JCDecaux reported an increase of 5.7% in its Street Furniture division, making €885.0 million an increase of 6.9% excluding acquisitions and the impact of foreign exchange related to the sale, rental and maintenance of Street Furniture contracts.
The Street Furniture business benefited from a buoyant advertising market in most European countries, enjoying particularly strong growth in the UK and Portugal, aided by the increase in advertising during the Euro 2004 football tournament.
France and Spain reported moderate growth, with Germany and the Netherlands returning to revenue growth after a difficult year in 2003. North America and the Asia-Pacific sectors saw double-digit revenue increase, supported by the increasing sales contribution from new contracts.
Billboard revenues for the Group saw a 1.4% rise to €433.6 million, and organic revenue growth increased by 4.4%. Most Central European countries saw double digit organic growth, with the UK reported a steady growth, benefiting from an improved advertising environment.
Transport revenues grew by an impressive 12% to €312.8 million, with organic revenues increasing by 11.5%. After two difficult years for the sector, 2004 showed signs of recovery, with Spain, Portugal, Norway and Germany all growing by double-digits. France also showed a solid revenue growth throughout the year, supported by a very strong fourth quarter. In the UK and US, revenues benefited from an acceleration in the second half, and reported moderate growth over the year.
Commenting on the group’s performance, Jean-Charles Decaux, chairman of the executive board and co chief executive said: “2004 was a year of strong organic growth across all of our activities, with an acceleration in the second half, allowing us to outperform the advertising market. The Group’s revenues for the year exceeded our expectations, reflecting the more favourable advertising market.”
JCDecaux will release a statement on current trading conditions and outlook for the rest of 2005 on 16 March, along with full year results for 2004.
Rival outdoor contractor, Maiden Outdoor, recently issued a pre-close trading statement for the year to 31 December 2004, revealing a strong financial performance despite under performing in their billboard division (see Maiden Up Despite Dented Billboard Advertising).
The Advertising Association recently released its predictions for 2005, forecasting a rise in adspend for outdoor advertising. According to the AA, the medium will be one of the more successful in the next 12 months, adding 6.2% to its total adspend, an increase second only to that of online advertising (see UK Adspend Forecast To Rise By 4.2% In 2005).
JCDecaux: 020 7298 8000 www.jcdecaux.co.uk
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