Outdoor advertising company, JCDecaux has announced an increase of 5.7% in revenues, totalling €1,631.4, revealing a strong performance in the second half of 2004, with organic revenues reported to have grown by 6.8%.
The solid results are stronger than the company predicted in its October forecast (see
Another Record Quarter For JCDecaux As Revenues Climb By 8%), and reflect strong organic revenue performance in all divisions throughout the Group, particularly in Transport where the business reported double-digit growth since the second quarter.
JCDecaux’s organic revenue growth reflects the company’s ability to outperform the advertising market, which grew by 6% in 2004, according to Independent media communications specialist, Carat’s latest survey, released in January (see European Growth Fuels 2004 Global Adspend).
Transport revenues grew by an impressive 12% to €312.8 million, with organic revenues increasing by 11.5%. After two difficult years for the company, 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 acceleration in the second half, and reported moderate growth over the year.
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 reporting steady growth, benefiting from an improved advertising environment.
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 increases, supported by the increasing sales contribution from new contracts.
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.”
He added: “While the lower margin Transport division made a significant contribution to revenue growth, the company’s operating margin will be enhanced by the positive revenue performance of the Group as a whole.”
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.
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