Outdoor advertising contractor, JC Decaux, has this morning announced third quarter revenue increases of 11% to E360 million thanks to a strong performance from its Street Furniture division. Revenues for the three months to September were in line with company expectations and rose on a like-for-like basis (excluding acquisitions) by 1.9%.
Street Furniture revenues increased by 14.5% to E178 million in Q3, up from E155 million in the same period last year. After acquisitions Billboard revenues rose 11.1% to E99 million, but declined 6.8% on a like-for-like basis. Similarly, Transport revenues grew by 4.2% to E84 million after the inclusion of new businesses, but declined 5.8% on a like-for-like basis.
This is a mixed performance for Decaux’s businesses. Whilst Street Furniture was strong, the Transport division showed a sharp slowdown – mainly as a result of the effects on the transport sector of the 11 September attacks in the US. The Billboard division, whilst bolstered by figures from acquisitions, has also suffered at the hands of the advertising slowdown.
Chairman and co-CEO, Jean-François Decaux, says that the Billboard and Transport divisions are expected to remain weak into Q4, whilst Street Furniture continues to show resilience. As a result, 2001 EBITDA is forecast to be slightly down on the previous year, in line with market expectations.
