Continuing weak advertising conditions in Europe have contributed to a 2.8% decline in first half revenues at outdoor contractor JCDecaux. Revenues came in at £758.2 million, which, when excluding acquisitions and the impact of foreign currencies, is a 1.0% rise over last year.
The US was the strongest region, recording double digit growth. This is in line with a general improvement in advertising conditions there (see
INSIGHTanalysis: Media Healthcheck – August 2003). In the UK, Spain and Italy, JCDecaux reports ‘sound organic revenue growth’.
Street furniture revenues fell by 2.2% to £408.2 million, with good growth in the UK, US, Spain and Australia offset by weaker trading in Germany and the Netherlands. Billboard revenues dropped by 1.5% to ?214.9 million, driven by growth in the key markets of France, Italy and the UK.
Revenues for the transport advertising division fell the most, by 6.5% to £135.1 million. The US, France, Spain, Portugal and Italy showed strong recovery, whilst the Sars disease affected the group’s airport and metro advertising business in Hong Kong during the second quarter.
Commenting on the results, chairman Jean-François Decaux, said: “Our outlook for the full year remains unchanged with trading conditions in Europe remaining challenging, particularly in Germany, but signs of an adverting recovery underway in the US.
“Consistent with our comments in July [see Ad Market Remains ‘Difficult’ For JCDecaux], we expect the organic revenue performance of our Street Furniture business in the second half of the year to be broadly in line with the first half.”
