Outdoor advertising company, JCDecaux, has announced a 5.7% increase in revenues for 2004 to €1,631.4 million, driven by strong organic growth in the group’s transport division, according a trading statement for the year.
Organic revenues were shown to have risen by 6.2% for 2004, a drop of 0.6% from the previously estimated 6.8% (see
JCDeaux Performs Ahead Of Advertising Market).
Profit before tax increased by 11.6% to €465.2 million from €416.9 million in 2003, with profits for the group’s street furniture division rising by 10.4% to €284.8 million and accounting for 83% of total profit in 2004.
The billboard sector saw profits increase by 10.1% to €59.9 million, producing a profit margin of 13.8%, compared to 12.7% in 2003, while profits for transport rose by a impressive 46.6% to €20.5 million, leading to an improvement in profit margin of 150 basis points to 6.5% of revenues.
Operating income was revealed to have increased by 18% to €271.6 million, up from €230.1 million in 2003. Elsewhere, net income for the group in 2004 increased by 91% to a record €78.1 million, compared to €40.9 million last year.
Commenting on the results, Jean-Charles Decaux, chairman of the company’s executive board and co-chief executive officer said: “2004 was a record year for the group. JCDecaux continued to outperform the advertising market and recorded a 16.7% operating income margin, driven by the recovery of the European advertising market and the contribution from the recent contract wins and investment, particularly in the USA and Asia.”
He added: “The recent winning of the 20-year street furniture contract in Yokohama now begins to open up Japan, the world’s second largest advertising market, and paves the way for growth in future years.”
JCDecaux is optimistic about the first quarter of 2005, anticipating strong organic growth. The group predicts organic revenue growth for 2005 to be around 4%.
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