Transport Losses Hit JCDecaux Revenues

Transport Losses Hit JCDecaux Revenues

Outdoor advertising company JCDecaux has reported Q1 sales of E358.6 million for 2002, an increase of 4.7% on the E342.6 million reported for Q1 2001. The group said that new acquisitions had helped lift revenues which fell in line with its own expectations.

However, revenue fell by 2.1% on a like-for-like (organic) basis. This reflected continued weakness in the transport division, said the company.

Revenue from the ‘street furniture’ businesses increased 5.7% to E198.8 million from E188.1 million in the same period 2001. Growth in this sector comes after JCDecaux made considerable efforts to boost its presence in the US street furniture market.

Billboard advertising rose 15% to by E93.2 million although again the figure represented a fall of 2.8% in organic growth. The transport division reported a drop of 8.9% as revenue fell to E66.6 million, organic growth was -15.8%. This decline, said JCDecaux, was expected to continue through the first half of the year before starting to pick up in the second half.

JCDecaux now expects H2 growth to be stronger than the first – in part due to more favourable comparables – and forecasts that it may outperform the broader advertising market, as well as the rest of the outdoor advertising market, in 2002.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news. For subscription details please visit the site.