JCDecaux has announced 2006 revenues of €1.9 million, an increase of 11.5% compared with a year earlier.
Excluding acquisitions and the impact of foreign exchange, organic revenue growth was 7.7%, reflecting stronger than expected growth in the fourth quarter and well ahead of growth in the global advertising market.
In the fourth quarter, consolidated revenues grew by 9.0% to €564.3 million (+7.6% on an organic basis) compared to the same period last year.
JCDecaux said that this growth in revenues reflects good progress in transport, which continued to show double-digit organic growth, and solid performances from street furniture and billboard.
Geographically, France and the Rest of Europe produced solid organic revenue growth over the year. In the United Kingdom, better than expected growth was achieved, following a strong performance in billboard and street furniture in the fourth quarter.
In its newer territories of North America and Asia-Pacific, the group reported particularly strong revenue progressions. The highest organic revenue increase was achieved in South America, reported under rest of the world.
In terms of activity, the transport division (26% of total revenues) established itself as the group’s second largest contributor to revenue – the first time in any full year – reflecting successful organic growth and acquisitive expansion, particularly in the Far East.
Jean-Charles Decaux, chairman of the executive board and co-CEO, said: “We experienced a stronger than expected fourth quarter, producing organic revenue growth of 7.7% for the year as a whole, the highest yearly organic growth rate achieved since our IPO in 2001.
“The growth in revenue reflects solid performances across all three of our divisions and is well ahead of the expected growth in the global advertising market in 2006.
“Our organic revenue growth was supported by the overall improvement in the French advertising market compared to 2005, the double-digit revenue increase from lower-margin Transport advertising, as well as the good progress of our North American and Asia-Pacific operations.
Decaux added: “We expect the operational progress achieved in 2006 – that was gained in both emerging and established markets – to pave the way for future revenue growth, which should enable us to continue to outperform the worldwide advertising market in 2007.”
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