JCDecaux Exceeds Expectations In 2002

JCDecaux, one of the world’s leading outdoor advertising companies, has today announced strong end of year results which were achieved in spite of challenging market conditions.

The group saw EBITDA rise by 7.4% to €405.3 million and net income more than doubled from €10.2 million in 2001 to €26 million last year. These results reflected the success of the Street Furniture and Billboard operations which saw revenues rise by 5.3% and 7.6% respectively.

“The group has performed well and exceeded previous expectations,” said chairman and co-chief executive Jean-Charles Decaux. “Revenues, net income and free cash flow have all improved, with earlier investments producing clear benefits. This demonstrates that the group has the right assets, the right people and the right strategy to continue to grow.”

The advertising recession has ensured that total ad spending remains well down on 2000 levels but there is greater enthusiasm than ever before for outdoor sites. The exception is airports which have fallen out of favour in the US and France in the last eighteen months. Transport revenues at JCDecaux fell by 11.6% to €294.8 million last year.

Even so, the company was able to cut operating costs by €20.6 million in 2002 and debt was reduced by €120.3 million to €613.2 million. Despite the prevailing economic difficulties, the immediate outlook appears bright.

“2003 will be challenging and it remains difficult to predict the outcome for the full year given the current uncertainties,” said Decaux. “Nonetheless, we expect to deliver positive organic growth (adjusted for currency) in revenues in the first quarter of 2003, despite slightly negative growth in Street Furniture, reflecting lower rate increases and the fact that the large contracts recently won will not start generating significant revenues until 2004.”

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