Outdoor advertising group JCDecaux, has announced an increase of 7.2% year on year in revenues, reaching €1.74 million, on the backend of stronger than expected growth in the fourth quarter of 2005.
Sound organic revenue growth in the group’s Street Furniture and Transport divisions led to overall organic revenue growth of 4% for 2005. Revenues slightly decreased in France over 2005, however, but were solid in other European countries and strong in North America and Asia-Pacific.
JCDecaux’s Street Furniture Division increased revenues by 4.9% in 2005, reaching €925.3 million, with organic revenue growth at 3.8% year on year. The department reported good overall growth, despite a slight decrease in revenues in France, where the market was particularly difficult in 2005.
Organic revenues for the advertising group’s Transport Division enjoyed a healthy increase of 11.7% year on year, while reported revenues rose by 25.2% to €391.6 million.
Billboard revenues saw a downturn during 2005, dropping by 1% to €428.3 million, while organic revenues dropped by 1.2%.
Despite market conditions remaining strong in Ireland and, to a lesser extent, in Portugal, most European countries suffered from weak demand over 2005, particularly during the summer season.
Commenting on the results, Jean-Francois Decaux, chairman of the executive board and co-chief executive said: “With a stronger than expected fourth quarter, JCDecaux achieved a sound organic revenue growth of 4% in 2005, despite a softening advertising environment in some European countries, especially in France.”
He continued: “The performance across our three business sectors differed markedly, with a difficult year in Billboard more than offset by solid growth in Street Furniture and a record performance in our Transport business.”
Turning to JCDecaux’s global offerings, 2005 saw fast development in the rapidly growing Chinese market. Following the acquisition of three companies and the winning of major new contracts, the group is currently the number one outdoor advertising operator in China.
The advertising company’s strong full year results follow on from a healthy 5.4% year on year increase in revenue for the first nine months of 2005, reaching €1,227.6 million, with organic revenues seeing a rise of 3.8% over the same time period (see JCDecaux Sees 5.4% Revenue Increase).
Related Links
