Q1 2019 trading update
-
First quarter 2019 adjusted
revenue up +13.1% to €840.0m
-
First quarter 2019 adjusted
organic revenue up +5.4%
-
Adjusted organic revenue growth
in Q2 2019 expected to be above +4%
Paris, May
14th, 2019 -
JCDecaux SA (Euronext Paris: DEC), the number one outdoor
advertising company worldwide, announced today its revenue for the
three months ended March 31st, 2019.
Following the adoption of IFRS 11
from January 1st, 2014, the
operating data presented below is adjusted to include our prorata share in companies under joint control. 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 2019 increased by +13.1% to €840.0 million compared to
€742.5 million in the first quarter of 2018.
Excluding the positive impact from foreign exchange variations and
the positive impact from changes in perimeter, adjusted revenue
increased by +5.4%.
Adjusted advertising revenue, excluding revenue related to sale,
rental and maintenance of street furniture and advertising
displays, increased by +5.5% on an organic basis in the first
quarter of 2019.
Q1 adjusted revenue |
2019 (€m) |
2018 (€m) |
Reported growth |
Organic growth(a) |
Transport |
368.0 |
293.5 |
+25.4% |
+14.5% |
Street
Furniture |
344.3 |
337.1 |
+2.1% |
+0.8% |
Billboard |
127.7 |
111.9 |
+14.1% |
-4.6% |
Total |
840.0 |
742.5 |
+13.1% |
+5.4% |
a. Excluding
acquisitions/divestitures and the impact of foreign
exchange
Please note that the geographic
comments below refer to organic revenue growth.
TRANSPORT
First quarter adjusted revenue
increased by +25.4% to €368.0 million (+14.5% on an organic
basis). Europe (including France and UK) posted double-digit
growth. Asia-Pacific and North America delivered strong
double-digit growth. The Rest of the World was up.
STREET
FURNITURE
First quarter adjusted revenue
increased by +2.1% to €344.3 million (+0.8% on an organic
basis). Europe (including France and UK) was down with UK being
impacted by the recent advertising ban for HFSS products (High Fat,
Salt and Sugar products) in London on TfL assets. Asia-Pacific was
up strongly with a double-digit growth, mainly driven by Australia.
North America was virtually flat. The Rest of the World was
up.
First quarter adjusted advertising revenue, excluding revenue
related to sale, rental and maintenance of street furniture was
down -0.7% on an organic basis compared to the first quarter of
2018.
BILLBOARD
First quarter adjusted revenue
increased by +14.1% to €127.7 million (-4.6% on an organic
basis). Europe (including France and UK), the Rest of the World and
North America were down.
Commenting on the 2019 first
quarter revenue, Jean-Charles Decaux, Chairman of
the Executive Board and Co-CEO of JCDecaux, said:
"Our Q1 2019
revenue of €840.0m, which grew +13.1% on a reported basis
benefiting from APN Outdoor's recent acquisition in Australia,
was up +5.4% on an organic basis, driven by the on-going
digitisation of our prime assets which now represent 23.5% of total
revenue.
Transport's
strong performance, up +14.5% organically reflects a double-digit
revenue growth in both China and North America, as well as a good
sales performance in Europe with very strong digital revenue in all
regions. Street Furniture's organic revenue growth of +0.8%
was affected by a negative performance in Europe with UK being
impacted by the recent advertising ban for HFSS products (High Fat,
Salt and Sugar products) in London on TfL assets, while our digital
portfolio continues to grow strongly. Billboard's organic revenue
decline of -4.6% continues to be impacted by our on-going
multi-year plan to reduce our UK traditional billboard network and
a lack of consolidation in some geographies, while our digital
Billboard business continues to grow double-digit.
As far as Q2 2019
is concerned, we currently expect an organic revenue growth
above +4% with good growth in Street Furniture especially in
France, North America and Australia, while Transport's growth will
be impacted by a stronger slowdown in our Chinese advertising Metro
business.
In a media
landscape increasingly fragmented, out-of-home advertising
reinforces its attractiveness. With our accelerating exposure to
faster-growth markets, 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 and to continue to invest significantly in
digital."
ADJUSTED
DATA
Under IFRS 11, applicable from
January 1st, 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 2019, the impact of IFRS 11 on adjusted revenue was
-€86.8 million (-€84.5 million in Q1 2018) leaving
IFRS revenue at €753.2 million (€658.0 million in Q1
2018).
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.
€m |
|
Q1 |
|
|
|
2018 adjusted revenue |
(a) |
742.5 |
|
|
|
2019 IFRS revenue |
(b) |
753.2 |
IFRS 11
impacts |
(c) |
86.8 |
2019 adjusted revenue |
(d) = (b) + (c) |
840.0 |
Currency
impacts |
(e) |
(13.1) |
2019 adjusted revenue at 2018 exchange rates |
(f) = (d) + (e) |
826.9 |
Change in
scope |
(g) |
(44.4) |
2019 adjusted organic revenue |
(h) = (f) + (g) |
782.5 |
|
|
|
Organic growth |
(i) = (h) / (a) |
+5.4% |
€m |
Impact of currency
as of March 31st,
2019 |
|
|
USD |
4.8 |
HKD |
3.8 |
RMB |
2.1 |
GBP |
1.0 |
BRL |
(1.3) |
Other |
2.7 |
|
|
Total |
13.1 |
Average exchange rate |
Q1 2019 |
Q1 2018 |
|
|
|
USD |
0.8805 |
0.8135 |
HKD |
0.1122 |
0.1039 |
RMB |
0.1305 |
0.1280 |
GBP |
1.1461 |
1.1320 |
BRL |
0.2338 |
0.2507 |
Next information:
Annual General Meeting of Shareholders: May 16th,
2019
H1 2019 results: July 25th, 2019
(before market)
Key Figures for
JCDecaux
-
2018 revenue: €3,619m
-
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 index
-
N°1 worldwide in street
furniture (528,660 advertising panels)
-
N°1 worldwide in transport
advertising with more than 210 airports and 277 contracts in
metros, buses, trains and tramways (366,000 advertising
panels)
-
N°1 in Europe for billboards
(137,020 advertising panels)
-
N°1 in outdoor advertising in
Europe (648,570 advertising panels)
-
N°1 in outdoor advertising in
Asia-Pacific (239,300 advertising panels)
-
N°1 in outdoor advertising in
Latin America (72,880 advertising panels)
-
N°1 in outdoor advertising in
Africa (24,170 advertising panels)
-
N°1 in outdoor advertising in
the Middle East (16,450 advertising panels)
-
Leader in self-service bike
rental scheme: pioneer in eco-friendly mobility
-
1,061,200 advertising panels in
more than 80 countries
-
Present in 4,030 cities with
more than 10,000 inhabitants
-
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
14-05-19 # Q1
2019_UK_vDEF
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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