Maiden On Track With Network Rail Win
Outdoor advertising group, Maiden Outdoor, has scooped the prestigious Network Rail advertising contract to provide all of its roadside billboards, running for ten years and worth £350 million in advertising revenue over 3,100 sites.
The new contract, covering mostly 48 and 96-sheet formats, is expected to commence in Autumn 2005, shutting the door on current joint-incumbent JCDecaux, as the contract switches from being split between the two companies, plus several smaller outdoor contractors, to sole operation by Maiden.
The latest win follows Maiden’s acquisition of Network Rail’s rail-side and platform contracts last July, worth a total of £477 million in advertising revenue over their 10-year lifespans.
Commenting on the new contract, Ron Zeghibe, chief executive of Maiden said: “This latest £350 million contract will complete the concessions that Network Rail has recently put out to tender – worth in total some £800 million in advertising revenues over their 10 year duration. Whereas the expiring roadside contract was divided between several outdoor poster groups over seven years, the new one will be solely operated by Maiden over 10 years and is therefore of much greater value.”
He added: “Being appointed as preferred bidder for the roadside contract is the final part of the jigsaw in our Network Rail portfolio. We believe our success is due to a mixture of innovation, ability to attract advertisers, knowledge of the transport sector and our position in the large format billboard market. There are further new contracts for us to secure in the transport sector and we hope this latest development will stand us in good stead.”
The win will help Maiden regain some of the ground lost to Viacom Outdoor last year, when the company’s rival went on something of an acquisition spree, signing up 17 of Network Rail’s stations and properties, an exclusive contract with Chiltern Railways, and advertising rights with GNER and Merseyrail – all previously held by Maiden (see Viacom Outdoor Snatches Third Rail Contract From Maiden).
Maiden has vowed to impress Network Rail with its latest acquisition, however, with Zeghibe stating: “Our customers will see the effect of this appointment over the course of the next 18 months, as we invest in new structures and introduce new products. We intend to invest up to £5 million in the Network Rail estate over that period to maximise the value of the Network Rail opportunity.”
Maiden has worked hard recently to extend its portfolio, and saw a strong financial performance during 2004, despite under performing in their outdoor billboard division (see Maiden Up Despite Dented Billboard Advertising).
The company recently signed a 10-year contract with retail property developer, Land Lease, with advertising revenues expected to reach £22.5 million. The contract covers retail centres at Bluewater in Kent, Touchwood in Solihull, Overgate in Dundee and Golden Square in Warrington (see Maiden Signs 10 Year Contract).
Maiden: 020 7838 4000 www.maiden.co.uk