JCDecaux has reported a year on year rise in revenues of 2.9% for 2008, to € 2.2 billion.
Excluding acquisitions and the impact of foreign exchange, organic revenue growth was 6.3%, ahead of the growth in the global advertising market in 2008, the outdoor firm said.
Group operating margin dipped by 1.0% to €550 million, while street furniture saw its operating margin fall by 2.4% to €397 million.
As a percentage of revenues, the street furniture operating margin decreased to 37.3% compared to 39% in 2007. In Europe, excluding France and the United Kingdom, the operating margin increased slightly last year.
In the United Kingdom and North America operating margin was heavily impacted by lower advertising revenues, particularly in the second half of the year in North America.
The group’s billboard division saw its operating margin decrease by 18.2% to €70.5 million and as a percentage of revenues the operating margin was down to 14.8%, compared to 17.6% in 2007.
Jean-Charles Decaux, co-CEO, said: “In 2008 we had a good first half but an increasingly challenging second six months. However, the operating performance delivered by the group for the year was solid reflecting the strength of our business model, the soundness of our strategy and the commitment of our teams.
“In 2009 – with economies slowing down at rates rarely seen before – this will inevitably lead to reduced advertising budgets, increased competition between media, and increasingly reduced visibility. In this environment, we expect organic revenue, for the first time in company’s history, to decline.
“In the first quarter we anticipate that this decline will be around 10%, albeit compared to a particularly strong first quarter last year. Given the reduced visibility we are not in a position to give guidance for the full year, although comparables to 2008 may improve given the weaker second half last year compared to the first quarter.”
