Q1 2017 trading
update
-
First quarter 2017 adjusted
revenue up +1.2% to €757.6m
-
First quarter 2017 adjusted
organic revenue down -1.0%
-
Adjusted organic revenue growth
in Q2 2017 expected to be slightly positive
Paris,
4th May, 2017 -
JCDecaux SA (Euronext Paris: DEC), the number one outdoor
advertising company worldwide, announced today its revenue for the
three months ended March 31st, 2017.
Following the adoption of IFRS 11
from 1st January,
2014, the operating data presented below is adjusted to include our
prorata share in companies under joint
control, and therefore is comparable with historical data prior to
2014. Please refer to the paragraph "Adjusted data" on page 2 of
this release for the definition of adjusted data and reconciliation
with IFRS.
Adjusted revenue for the first
quarter increased by +1.2% to €757.6 million compared to
€748.5 million in Q1 2016.
Excluding the positive impact from foreign exchange variations and
the positive impact from changes in perimeter, adjusted revenue
decreased by -1.0%.
Adjusted advertising revenue, excluding revenue related to sale,
rental and maintenance, decreased by -0.3% on an organic basis in
the first quarter of 2017.
Q1 adjusted revenue |
2017 (€m) |
2016 (€m) |
Reported growth |
Organic growth(a) |
Street
Furniture |
343.1 |
333.4 |
+2.9% |
+1.9% |
Transport |
302.1 |
312.0 |
-3.2% |
-3.3% |
Billboard |
112.4 |
103.1 |
+9.0% |
-3.3% |
Total |
757.6 |
748.5 |
+1.2% |
-1.0% |
a. Excluding
acquisitions/divestitures and the impact of foreign
exchange
Please note that the geographic
comments below refer to organic revenue growth.
STREET
FURNITURE
First quarter adjusted revenue
increased by +2.9% to €343.1 million (+1.9% on an organic
basis) driven by a very strong increase in digital revenue. Europe
(including France and the UK) was up. Asia-Pacific and North
America were down. The Rest of the World delivered good growth,
mainly due to Latin America.
First quarter adjusted advertising revenue, excluding revenue
related to sale, rental and maintenance was up +2.2% on an organic
basis compared to the first quarter of 2016.
In the UK, the roll-out of the
world's largest digital Street Furniture network is well underway
with 550 screens out of 650 with TfL plus 86 screens in highly
desirable London Boroughs such as Kensington & Chelsea,
Kingston-upon-Thames. This unique digital OOH platform enables our
company to continue to outperform the growth of UK OOH.
In New York City, advertisers and agencies consider our digital
network with 84" LCD screens in bus shelters and 5.3sqm LED screens
on newsstands to be superior to our competitors' 55" LCD screens
which makes us very competitive for OOH digital only campaigns.
TRANSPORT
First quarter adjusted revenue
decreased by -3.2% to €302.1 million (-3.3% on an organic
basis). Europe (including France and the UK) was up. Asia-Pacific
and the Rest of the World were significantly down. North America
was up double digit.
BILLBOARD
First quarter adjusted revenue
increased by +9.0% to €112.4 million (-3.3% on an organic
basis). Europe (including France and the UK) and the Rest of the
World were down while our digital billboard business in Chicago was
up very strongly.
Commenting on the 2017 first
quarter revenue, Jean-Charles Decaux, Chairman of
the Executive Board and Co-CEO of JCDecaux, said:
"Our
Q1 2017 revenue of €757.6 million, up +1.2% on a
reported basis and down -1.0% on an organic basis versus a very
strong quarter last year, is in line with our early March guidance.
Street Furniture's good performance was mainly driven by a very
strong increase in digital revenue coming from the ongoing
digitisation of our premium assets around the world including
London and New York City, while our Transport segment was
negatively impacted by a double-digit revenue decline in both
Greater China and in the Rest of the World. Our Billboard segment
remains challenging both in Europe and in the Rest of the
World.
As far as Q2 2017
is concerned, taking into account both a low visibility and a
strong volatility, we currently expect a slightly positive organic
revenue growth, despite a recent cautiousness of French advertisers
in the presidential and parliamentary election periods and no real
recovery yet in our Chinese business.
In a media
landscape increasingly fragmented, out-of-home advertising
reinforces its attractiveness. With our well-diversified exposure
to faster-growth markets, an increasing presence in the most
influential cities in the world1, our growing
premium digital portfolio combined with a new data-led audience
targeting platform, our ability to win new contracts and the high
quality of our teams across the world, we believe we are well
positioned to outperform the advertising market and increase our
leadership position in the outdoor advertising industry through
profitable market share gains. The strength of our balance sheet is
a key competitive advantage that will allow us to pursue further
external growth opportunities as they arise."
ADJUSTED
DATA
Under IFRS 11, applicable from
1st January,
2014, companies under joint control are accounted for using the
equity method.
However in order to reflect the business reality of the Group,
operating data of the companies under joint control will continue
to be proportionately integrated in the operating management
reports used to monitor the activity, allocate resources and
measure performance.
Consequently, pursuant to IFRS 8, Segment Reporting presented in
the financial statements complies with the Group's internal
information, and the Group's external financial communication
therefore relies on this operating financial information. Financial
information and comments are therefore based on "adjusted" data,
consistent with historical data prior to 2014, which is reconciled
with IFRS financial statements.
In Q1 2017, the impact of IFRS 11 on adjusted revenue was
-€87.4 million (-€93.0 million in Q1 2016) leaving
IFRS revenue at €670.2 million (€655.5 million in Q1
2016).
ORGANIC GROWTH
DEFINITION
The Group's organic growth
corresponds to the adjusted revenue growth excluding foreign
exchange impact and perimeter effect. The reference fiscal year
remains unchanged regarding the reported figures, and the organic
growth is calculated by converting the revenue of the current
fiscal year at the average exchange rates of the previous year and
taking into account the perimeter variations prorata temporis, but including revenue variations from
the gains of new contracts and the losses of contracts previously
held in our portfolio.
1 According to
Forbes 2014 ranking.
In order to quantify cities' global influence, Forbes looked at
eight factors: the amount of foreign direct investment they have
attracted; the concentration of corporate headquarters; how many
particular business niches they dominate; air connectivity (ease of
travel to other global cities); strength of producer services;
financial services; technology and media power; and racial
diversity.
Next information:
Annual General Meeting of Shareholders: 11th May,
2017
Half-year 2017 results: 27th July, 2017
(before market)
Key Figures for
JCDecaux
-
2016 revenue: €3,393m
-
JCDecaux is listed on the
Eurolist of Euronext Paris and is part of the Euronext 100 and
Euronext Family Business indexes
-
JCDecaux is part of the
FTSE4Good and Dow Jones Sustainability Europe indexes
-
N°1 worldwide in street
furniture (559,070 advertising panels)
-
N°1 worldwide in transport
advertising with more than 220 airports and 260 contracts in
metros, buses, trains and tramways (354,680 advertising
panels)
-
N°1 in Europe for billboards
(169,860 advertising panels)
-
N°1 in outdoor advertising in
Europe (721,130 advertising panels)
-
N°1 in outdoor advertising in
Asia-Pacific (219,310 advertising panels)
-
N°1 in outdoor advertising in
Latin America (70,680 advertising panels)
-
N°1 in outdoor advertising in
Africa (29,820 advertising panels)
-
N°1 in outdoor advertising in
the Middle-East (16,230 advertising panels)
-
N°1 worldwide for self-service
bike rental scheme: pioneer in eco-friendly mobility
-
1,117,890 advertising panels in
more than 75 countries
-
Present in 4,280 cities with
more than 10,000 inhabitants
-
Daily audience: more than
410 million people
-
13,030 employees
Forward looking
statements
This news release may contain some forward-looking statements.
These statements are not undertakings as to the future performance
of the Company. Although the Company considers that such statements
are based on reasonable expectations and assumptions on the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual performance to
differ from those indicated or implied in such
statements.
These risks and uncertainties include without limitation the risk
factors that are described in the annual report registered in
France with the French Autorité des Marchés Financiers.
Investors and holders of shares of the Company may obtain copy of
such annual report by contacting the Autorité des Marchés
Financiers on its website www.amf-france.org or directly on the
Company website www.jcdecaux.com.
The Company does not have the obligation and undertakes no
obligation to update or revise any of the forward-looking
statements.
Communications Department:
Agathe Albertini
+33 (0) 1 30 79 34 99 - agathe.albertini@jcdecaux.com
Investor Relations: Arnaud
Courtial
+33 (0) 1 30 79 79 93 - arnaud.courtial@jcdecaux.com
04-05-17 # Q1 2017_UK
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: JCDecaux via Globenewswire
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