H1 2019 results
-
Adjusted revenue up +12.1% to
€1,842.3 million
-
Adjusted organic revenue up
+5.2%, with Q2 at +5.1%
-
Adjusted operating margin of
€306.4 million, up +29.4%
-
Adjusted EBIT, before
impairment charge, of €136.1 million, up +58.6%
-
Net income Group share of €96.0
million, up +86.8%
-
Adjusted free cash flow of
-€7.8 million, down -120.3%
-
Adjusted organic revenue
expected to be flat in Q3 2019 compared to Q3 2018
Paris, July
25th, 2019 -
JCDecaux SA (Euronext Paris: DEC), the number one outdoor
advertising company worldwide, announced today its 2019 half year
financial results.
Following the adoptions of
IFRS 11 from January 1st, 2014
and IFRS 16 from January 1st, 2019,
and in compliance with the AMF's instructions, the operating data
presented below are adjusted:
-
to include our prorata
share in companies under joint control, regarding
IFRS 11,
-
to exclude the impact of IFRS 16 on our
core business lease agreements (lease agreements of locations for
advertising structures excluding real estate and vehicle rental
contracts).
Please refer to the paragraph
"Adjusted data" on pages 5 and 6 of this release for the definition
of adjusted data and reconciliation with IFRS.
Commenting on the 2019 first half
results, Jean-François Decaux, Chairman of the
Executive Board and Co-CEO of JCDecaux, said:
"Our H1 2019
revenue of €1,842 million was up +12.1% on a reported basis
benefiting from the APN Outdoor acquisition and up +5.2% on an
organic basis, driven by a better than expected Q2 with an organic
growth rate of +5.1% boosted by an acceleration in Street
Furniture. Our digital
Group revenue, up +44.2%, which now represent 23.9% of our total
revenue, continued to grow strongly across all business segments
with Street Furniture at +26.6%, Transport at +40.9% and Billboard
at +161.2%. Street Furniture's organic growth,
up +5.6%, benefited from a good performance in France, Rest of
Europe, North America, as well as from a double-digit growth in
Asia-Pacific. Transport, up +8.1%, delivered a good performance in
Asia-Pacific despite a revenue decline in our Chinese metro
business in Q2 2019, combined with a double-digit growth in
the Rest of Europe and North America. Billboard's organic revenue decline of -3.8% continued 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 continued to grow
double-digit.
As anticipated,
our overall operating margin increased by
+220bp to 16.6%. All segments saw a margin improvement over the
period. Street Furniture, Transport and Billboard delivered a
+30bp, a +500bp and a +210bp margin accretion, respectively. This
margin improvement reflects the operating leverage from good
organic revenue growth driven by the on-going digitisation of our
prime assets and the ramp-up of large contracts won over the last
2 years as well as the accretive contribution of APN
Outdoor.
As far as Q3 2019
is concerned and bearing in mind the high comparable from last year
as well as the non-renewal of the AENA Spanish national airport
loss-making contract, we expect our adjusted organic revenue to be
flat compared to Q3 2018, due to a revenue decline in China
and now in Hong Kong, despite a growing airport business. Our
well-diversified geographic footprint, which is quite unique in the
media industry, enables our advertising revenue to be more
resilient to a slowdown in the world economy.
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 global 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
REVENUE
Adjusted revenue for the six
months ending June 30th, 2019
increased by +12.1% to €1,842.3 million from
€1,643.3 million in the same period last year. On an organic
basis (i.e. excluding the positive impact from foreign
exchange variations and the positive impact from changes in
perimeter), adjusted revenue grew by +5.2%. Adjusted advertising
revenue, excluding revenue related to sale, rental and maintenance
of street furniture and advertising displays, increased by +5.7% on
an organic basis in the first half of 2019.
In the second quarter, adjusted
revenue increased by +11.3% to €1,002.3 million. On an organic
basis, adjusted revenue grew by +5.1% compared to
Q2 2018.
Adjusted advertising revenue, excluding revenue related to sale,
rental and maintenance of street furniture and advertising
displays, increased by +5.8% on an organic basis in
Q2 2019.
Adjusted
revenue
€m |
H1 2019 |
H1 2018 |
Change 19/18 |
Q1 |
Q2 |
H1 |
Q1 |
Q2 |
H1 |
Q1 |
Q2 |
H1 |
Street
Furniture |
344.3 |
446.3 |
790.6 |
337.1 |
405.6 |
742.7 |
+2.1% |
+10.0% |
+6.4% |
Transport |
368.0 |
409.0 |
777.0 |
293.5 |
365.9 |
659.4 |
+25.4% |
+11.8% |
+17.8% |
Billboard |
127.7 |
147.0 |
274.7 |
111.9 |
129.3 |
241.2 |
+14.1% |
+13.7% |
+13.9% |
Total |
840.0 |
1,002.3 |
1,842.3 |
742.5 |
900.8 |
1,643.3 |
+13.1% |
+11.3% |
+12.1% |
Adjusted organic
revenue growth (a)
|
Change 19/18 |
Q1 |
Q2 |
H1 |
Street
Furniture |
+0.8% |
+9.6% |
+5.6% |
Transport |
+14.5% |
+3.0% |
+8.1% |
Billboard |
-4.6% |
-3.1% |
-3.8% |
Total |
+5.4% |
+5.1% |
+5.2% |
(a) Excluding acquisitions/divestitures and the impact of foreign
exchange
Adjusted revenue
by geographic area
€m |
H1 2019 |
H1 2018 |
Reported growth |
Organic growth(a) |
Asia-Pacific |
538.6 |
400.2 |
+34.6% |
+9.5% |
Europe(b) |
472.9 |
447.4 |
+5.7% |
+6.1% |
France |
300.6 |
287.6 |
+4.5% |
+4.5% |
Rest of
the World |
208.3 |
208.3 |
0.0% |
-1.7% |
United
Kingdom |
171.9 |
173.2 |
-0.8% |
-1.5% |
North
America |
150.0 |
126.6 |
+18.5% |
+10.7% |
Total |
1,842.3 |
1,643.3 |
+12.1% |
+5.2% |
(a) Excluding
acquisitions/divestitures and the impact of foreign
exchange
(b) Excluding France and the United
Kingdom
Please note that the geographic
comments below refer to organic revenue growth.
STREET
FURNITURE
First half adjusted revenue
increased by +6.4% to €790.6 million, +5.6% on an organic
basis, driven by a good performance in France, Rest of Europe and
North America as well as a double-digit growth in Asia-Pacific. UK
was down, impacted by the advertising ban for HFSS products (High
Fat, Salt and Sugar products) in London on TfL assets.
First half adjusted advertising revenue, excluding revenue related
to sale, rental and maintenance of street furniture were up +4.9%
on an organic basis compared to the first half of 2018.
In the second quarter, adjusted
revenue increased by +10.0% to €446.3 million. On an organic
basis, adjusted revenue increased by +9.6% compared to the same
period last year. Adjusted advertising revenue, excluding revenue
related to sale, rental and maintenance of street furniture were up
+9.6% on an organic basis in Q2 2019 compared to
Q2 2018.
TRANSPORT
First half adjusted revenue
increased by +17.8% to €777.0 million, +8.1% on an organic
basis, thanks to a good performance in Asia-Pacific, a double-digit
growth in the Rest of Europe and North America; UK and France were
up single-digit.
In the second quarter, adjusted
revenue increased by +11.8% to €409.0 million. On an organic
basis, adjusted revenue increased by +3.0% compared to the same
period last year, mainly due to a revenue decline in our Chinese
metro business.
BILLBOARD
First half adjusted revenue
increased by +13.9% to €274.7 million, -3.8% on an organic
basis. Reported growth benefited from the contribution of
APN Outdoor. Organically, Europe (including France and UK) and
the Rest of the World were down. North America was up
double-digit.
In the second quarter, adjusted
revenue increased by +13.7% to €147.0 million. On an organic
basis, adjusted revenue decreased by -3.1% compared to the same
period last year.
ADJUSTED
OPERATING MARGIN (1)
In the first half of 2019,
adjusted operating margin increased by +29.4% to
€306.4 million from €236.7 million in the first half of
2018. The adjusted operating margin as a percentage of revenue was
16.6%, +220bp above prior year.
|
H1 2019 |
H1 2018 |
Change 19/18 |
|
€m |
% of revenue |
€m |
% of revenue |
Change (%) |
Margin rate (bp) |
Street
Furniture |
176.1 |
22.3% |
163.3 |
22.0% |
+7.8% |
+30bp |
Transport |
107.2 |
13.8% |
58.2 |
8.8% |
+84.2% |
+500bp |
Billboard |
23.1 |
8.4% |
15.2 |
6.3% |
+52.0% |
+210bp |
Total |
306.4 |
16.6% |
236.7 |
14.4% |
+29.4% |
+220bp |
Street
Furniture: In the first half of 2019, adjusted operating margin
increased by +7.8% to €176.1 million. As a percentage of
revenue, the adjusted operating margin increased by +30bp to 22.3%,
compared to the first half of 2018.
Transport: In
the first half of 2019, adjusted operating margin increased by
+84.2% to €107.2 million. As a percentage of revenue, the
adjusted operating margin increased by +500bp to 13.8% compared to
the first half of 2018, positively impacted by the good organic
revenue growth and, to a lesser extent, by APN Outdoor
contribution.
Billboard: In
the first half of 2019, adjusted operating margin increased by
+52.0% to €23.1 million. As a percentage of revenue, adjusted
operating margin increased by +210bp to 8.4% compared to the first
half of 2018, due to the accretive impact from APN Outdoor.
Excluding APN Outdoor contribution, margin ratio decreased by
-90bp reflecting the organic revenue decline.
ADJUSTED EBIT
(2)
In the first half of 2019,
adjusted EBIT before impairment charge increased by +58.6% to
€136.1 million compared to €85.8 million in the first
half of 2018. As a percentage of revenue, this represented a +220bp
increase to 7.4%, from 5.2% in H1 2018. No significant variation in
the consumption of maintenance spare parts in H1 2019. Net
amortisation and provisions were up compared to the same period
last year, in line with our investments related to significant
contract wins and digital. Other operating income and expenses
impacted EBIT positively in H1 2019.
No impairment charge on goodwill
has been recorded in H1 2019 like in H1 2018. A €3.2 million
reversal on provisions for onerous contracts and a
-€0.1 million impairment on tangible and intangible assets
have been recognised in H1 2019 (a €0.7 million reversal on
provisions for onerous contracts and a -€0.8 million
impairment on tangible and intangible assets were booked in H1
2018).
Adjusted EBIT, after impairment charge increased by +62.4% to
€139.2 million compared to €85.7 million in H1 2018.
NET FINANCIAL
INCOME / (LOSS) (3)
In the first half of 2019,
interest expenses on IFRS 16 leases were -€83.3 million
compared to -€71.5 million in the first half of 2018, a
variation of -€11.8 million mainly coming from the increase in
lease liabilities related to new contracts secured during the
period.
In the first half of 2019,
excluding IFRS 16, other net financial
income / (loss) was -€12.7 million compared
to -€11.2 million in the first half of 2018, a variation
limited to -€1.5 million mainly corresponding to foreign
exchange losses while our financial interest expenses decreased
slightly despite the increase in our net debt. This is due to our
optimised sources of funding which allows us to benefit from good
market conditions.
EQUITY
AFFILIATES
In the first half of 2019, the
share of net profit from equity affiliates was €38.4 million,
slightly lower compared to the same period last year
(€39.2 million).
NET INCOME GROUP
SHARE
In the first half of 2019, net
income Group share before impairment charge increased by +80.8% to
€93.1 million compared to €51.5 million in H1 2018,
including a positive net impact of €24.3 million due to the
application of IFRS 16 on our core business, leading to
reversal of lease liabilities and rights-of-use relating to
contracts renegotiation during the period.
Taking into account the impact
from the impairment charge, net income Group share increased by
+86.8% to €96.0 million compared to €51.4 million in H1
2018.
ADJUSTED CAPITAL
EXPENDITURE
In the first half of 2019,
adjusted net capex (acquisition of property, plant and equipment
and intangible assets, net of disposals of assets) was at
€136.6 million compared to €94.2 million, up compared to
the same period last year, mainly due to the new Street Furniture
contracts in Europe as well as the digitisation across all
segments.
ADJUSTED FREE
CASH FLOW (4)
In the first half of 2019,
adjusted free cash flow was -€7.8 million compared to
€38.4 million in the same period last year despite an increase
in funds from operations. This decrease is mainly due to higher
working capital requirements from trade liabilities and inventories
despite a good cash collection from our operations and expected
higher capex in line with our investments following significant
contract wins over the last 2 years.
DIVIDEND
The dividend of €0.58 per share
for the 2018 financial year, approved at the Annual General Meeting
of Shareholders on May 16th, 2019, was
paid on May 23rd, 2019,
for a total amount of €123.4 million.
NET DEBT
(5)
Net debt as of
June 30th, 2019
amounted to €1,316.2 million compared to a net debt position
of €473.8 million as of June 30th, 2018,
mainly due to the acquisition of APN Outdoor on
October 31st, 2018.
RIGHT-OF-USE
& LEASE LIABILITIES, IFRS 16
Right-of-use, IFRS 16 as of
June 30th, 2019
amounted to €4,618.1 million compared to €4,518.0 million
as of December 31st, 2018,
an increase related to new contracts, contracts extended and
contracts renewed, partially offset by the amortisation of
right-of-use during the period.
As a result of this strengthening
of our contracts portfolio, IFRS 16 lease liabilities
increased by €31.1 million from €5,192.9 million as of
December 31st, 2018
to €5,224.0 million as of June 30th, 2019,
the increase in lease liabilities corresponding to new contracts,
contracts extended and contracts renewed being partially offset by
rents paid and renegotiated during the period.
ADJUSTED
DATA
Under IFRS 11, applicable from
January 1st, 2014,
companies under joint control are accounted for using the equity
method.
Under IFRS 16, applicable from January 1st, 2019,
a lease liability for contractual fixed rental payments is
recognised on the balance sheet, against a right-of-use asset to be
depreciated over the lease term. As regards P&L, the fixed rent
expense is replaced by the depreciation of the right-of-use in
EBIT, below the operating margin, and a lease interest expense on
the lease liability in financial result, below EBIT. IFRS 16
has no impact on cash payments but payment of debt (principal) is
booked in funds from financing activities.
However, in order to reflect the business reality of the Group and
the readability of our performance, our operating management
reports used to monitor the activity, allocate resources and
measure performance continue:
-
To integrate on proportional basis operating
data of the companies under joint control and;
-
To exclude the IFRS 16 impact on our core
business (lease agreements of locations for advertising structures
excluding real estate and vehicle rental contracts).
As regards the P&L, it
concerns all aggregates down to the EBIT. As regards the cash flow
statement, it concerns all aggregates down to the free cash
flow.
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, which is reconciled with IFRS
financial statements.
In the first half of 2019, the
impacts of IFRS 11 and IFRS 16 on our adjusted aggregates
are:
-
-€190.9 million for IFRS 11 on
adjusted revenue (-€195.5 million for IFRS 11 in
H1 2018) leaving IFRS revenue at €1,651.4 million
(€1,447.8 million in H1 2018).
-
-€53.5 million for IFRS 11 and
€567.6 million for IFRS 16 on adjusted operating margin
(-€53.3 million for IFRS 11 and €474.0 million for
IFRS 16 in H1 2018) leaving IFRS operating margin at
€820.5 million (€657.4 million in H1 2018).
-
-€40.9 million for IFRS 11 and
€107.7 million for IFRS 16 on adjusted EBIT before
impairment charge (-€41.2 million for IFRS 11 and
€58.5 million for IFRS 16 in H1 2018) leaving IFRS
EBIT before impairment charge at €202.9 million
(€103.1 million in H1 2018).
-
-€40.9 million for IFRS 11 and
€107.7 million for IFRS 16 on adjusted EBIT after
impairment charge (-€41.2 million for IFRS 11 and
€58.5 million for IFRS 16 in H1 2018) leaving IFRS
EBIT after impairment charge at €206.0 million
(€103.0 million in H1 2018).
-
€5.5 million for IFRS 11 on adjusted
capital expenditure (€4.4 million for IFRS 11 in
H1 2018) leaving IFRS capital expenditure at
-€131.1 million (-€89.8 million in H1 2018).
-
-€1.0 million for IFRS 11 and
€554.1 million for IFRS 16 on adjusted free cash flow
(-€34.8 million for IFRS 11 and €449.7 million for
IFRS 16 in H1 2018) leaving IFRS free cash flow at
€545.3 million (€453.3 million in H1 2018).
The full reconciliation between
adjusted figures and IFRS figures is provided on page 9 of
this release.
NOTES
-
Operating Margin: Revenue
less Direct Operating Expenses (excluding Maintenance spare parts)
less SG&A expenses.
-
EBIT: Earnings Before
Interests and Taxes = Operating Margin less Depreciation,
amortization and provisions (net) less Impairment of goodwill less
Maintenance spare parts less Other operating income and
expenses.
-
Net financial income /
(loss): Excluding the net impact of discounting and revaluation
of debt on commitments to purchase minority interests
(-€2.5 million and -€0.3 million in H1 2019 and
H1 2018 respectively).
-
Free cash flow: Net cash
flow from operating activities less capital investments (property,
plant and equipment and intangible assets) net of disposals.
-
Net debt: Debt net of
managed cash less bank overdrafts, excluding the non-cash IAS 32
impact (debt on commitments to purchase minority interests),
including the non-cash IFRS 9 impact on both debt and hedging
financial derivatives excluding IFRS 16 lease
liabilities.
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 |
Q2 |
H1 |
|
|
|
|
|
2018 adjusted revenue |
(a) |
742.5 |
900.8 |
1,643.3 |
|
|
|
|
|
2019 IFRS revenue |
(b) |
753.2 |
898.2 |
1,651.4 |
IFRS 11
impacts |
(c) |
86.8 |
104.1 |
190.9 |
2019 adjusted revenue |
(d) = (b) + (c) |
840.0 |
1,002.3 |
1,842.3 |
Currency
impacts |
(e) |
(13.1) |
(9.4) |
(22.5) |
2019 adjusted revenue at 2018 exchange rates |
(f) = (d) + (e) |
826.9 |
992.9 |
1,819.8 |
Change in
scope |
(g) |
(44.4) |
(46.3) |
(90.7) |
2019 adjusted organic revenue |
(h) = (f) + (g) |
782.5 |
946.6 |
1,729.1 |
|
|
|
|
|
Organic growth |
(i) = (h) / (a) |
+5.4% |
+5.1% |
+5.2% |
€m |
Impact of currency
as of June 30th,
2019 |
|
|
USD |
(9.8) |
HKD |
(7.1) |
UAE |
(2.5) |
GBP |
(1.2) |
BRL |
1.8 |
Other |
(3.7) |
|
|
Total |
(22.5) |
Average exchange rate |
H1 2019 |
H1 2018 |
|
|
|
USD |
0.8851 |
0.8262 |
HKD |
0.1129 |
0.1054 |
UAE |
0.2410 |
0.2248 |
GBP |
1.1446 |
1.1367 |
BRL |
0.2303 |
0.2415 |
Next information:
Q3 2019 revenue: November 7th, 2019 (after
market)
Key Figures for
JCDecaux
-
2018 revenue: €3,619m, H1 2019
revenue: €1,842.3m
-
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 and the MSCI and CDP rankings
-
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
RECONCILIATION BETWEEN ADJUSTED
FIGURES AND IFRS FIGURES
Profit & Loss |
H1 2019 |
H1 2018 (1) |
€m |
Adjusted |
Impact of
companies under joint control |
Impact of
IFRS 16 from controlled entities (2) |
IFRS |
Adjusted |
Impact of
companies under joint control |
Impact of
IFRS 16 from controlled entities (2) |
IFRS |
Revenue |
1,842.3 |
(190.9) |
- |
1,651.4 |
1,643.3 |
(195.5) |
- |
1,447.8 |
Net
operating costs |
(1,535.9) |
137.4 |
567.6 |
(830.9) |
(1,406.6) |
142.2 |
474.0 |
(790.4) |
Operating margin |
306.4 |
(53.5) |
567.6 |
820.5 |
236.7 |
(53.3) |
474.0 |
657.4 |
Maintenance spare parts |
(17.6) |
0.6 |
- |
(17.0) |
(16.9) |
0.7 |
- |
(16.2) |
Amortisation and provisions (net) |
(155.1) |
11.7 |
(501.7) |
(645.1) |
(142.3) |
10.8 |
(415.6) |
(547.1) |
Other
operating income / expenses |
2.4 |
0.3 |
41.8 |
44.5 |
8.3 |
0.6 |
0.1 |
9.0 |
EBIT before impairment charge |
136.1 |
(40.9) |
107.7 |
202.9 |
85.8 |
(41.2) |
58.5 |
103.1 |
Net
impairment charge (3) |
3.1 |
- |
- |
3.1 |
(0.1) |
- |
- |
(0.1) |
EBIT after impairment charge |
139.2 |
(40.9) |
107.7 |
206.0 |
85.7 |
(41.2) |
58.5 |
103.0 |
(1)
The 2018 comparative figures are restated from the
retrospective application of IFRS 16, applicable from January
1st,
2019.
(2)
IFRS 16 impact core business from controlled
entities
(3)
Including impairment charge on net assets of
companies under joint control. |
|
|
|
|
|
|
|
|
|
Cash-Flow Statement |
H1 2019 |
H1 2018 (1) |
€m |
Adjusted |
Impact of
companies under joint control |
Impact of
IFRS 16 from controlled entities (2) |
IFRS |
Adjusted |
Impact of
companies under joint control |
Impact of
IFRS 16 from controlled entities (2) |
IFRS |
Funds from operations net of maintenance costs |
191.0 |
0.6 |
520.7 |
712.3 |
170.1 |
(18.4) |
435.5 |
587.2 |
Change in
working capital requirement |
(62.2) |
(7.1) |
33.4 |
(35.9) |
(37.5) |
(20.8) |
14.2 |
(44.1) |
Net cash flow from operating activities |
128.8 |
(6.5) |
554.1 |
676.4 |
132.6 |
(39.2) |
449.7 |
543.1 |
Capital
expenditure |
(136.6) |
5.5 |
- |
(131.1) |
(94.2) |
4.4 |
- |
(89.8) |
Free cash flow |
(7.8) |
(1.0) |
554.1 |
545.3 |
38.4 |
(34.8) |
449.7 |
453.3 |
(1)
The 2018 comparative figures are restated from the
retrospective application of IFRS 16, applicable from January
1st,
2019.
(2)
IFRS 16 impact core business from controlled
entities
|
|
Half-year
consolidated financial statements - H1 2019
Condensed
interim consolidated financial statements
STATEMENT OF FINANCIAL POSITION |
|
|
|
|
|
Assets |
|
|
|
|
|
In million
euros |
6/30/2019 |
12/31/2018 Restated (1) |
Goodwill |
1,941.2 |
1,939.0 |
Other
intangible assets |
392.3 |
393.6 |
Property,
plant and equipment |
1,277.1 |
1,274.1 |
Rights of
use |
4,618.1 |
4,518.0 |
Investments under the equity method |
432.0 |
442.2 |
Other
financial assets |
83.7 |
80.8 |
Deferred
tax assets |
134.6 |
145.8 |
Current
tax assets |
1.1 |
1.1 |
Other
receivables |
16.9 |
18.3 |
NON-CURRENT ASSETS |
8,897.0 |
8,812.9 |
Other
financial assets |
25.2 |
30.2 |
Inventories |
217.9 |
159.4 |
Financial
derivatives |
1.8 |
4.9 |
Trade and
other receivables |
1,006.4 |
1,003.8 |
Current
tax assets |
45.8 |
18.4 |
Treasury
financial assets |
57.4 |
81.2 |
Cash and
cash equivalents |
132.3 |
112.3 |
CURRENT ASSETS |
1,486.8 |
1,410.2 |
TOTAL ASSETS |
10,383.8 |
10,223.1 |
(1) Restated from the
retrospective application of IFRS 16.
Equity and Liabilities |
|
|
|
|
|
In million
euros |
6/30/2019 |
12/31/2018 Restated (1) |
Share
capital |
3.2 |
3.2 |
Additional paid-in capital |
608.3 |
606.4 |
Consolidated reserves |
1,540.7 |
1,473.3 |
Consolidated net income (Group share) |
96.0 |
192.4 |
Other
components of equity |
(164.2) |
(165.9) |
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT
COMPANY |
2,084.0 |
2,109.4 |
Non-controlling interests |
40.3 |
32.2 |
TOTAL EQUITY |
2,124.3 |
2,141.6 |
Provisions |
338.5 |
332.8 |
Deferred
tax liabilities |
76.7 |
60.5 |
Financial
debt |
1,056.6 |
1,062.9 |
Debt on
commitments to purchase non-controlling interests |
90.3 |
87.8 |
Lease
liabilities |
4,104.5 |
4,162.7 |
Other
payables |
16.2 |
15.0 |
Income
tax payable |
0.2 |
0.0 |
Financial
derivatives |
0.0 |
0.2 |
NON-CURRENT LIABILITIES |
5,683.0 |
5,721.9 |
Provisions |
55.1 |
61.6 |
Financial
debt |
441.0 |
289.6 |
Debt on
commitments to purchase non-controlling interests |
4.6 |
4.6 |
Financial
derivatives |
3.1 |
1.3 |
Lease
liabilities |
1,119.5 |
1,030.2 |
Trade and
other payables |
922.7 |
904.6 |
Income
tax payable |
23.5 |
43.4 |
Bank
overdrafts |
7.0 |
24.3 |
CURRENT LIABILITIES |
2,576.5 |
2,359.6 |
TOTAL LIABILITIES |
8,259.5 |
8,081.5 |
TOTAL EQUITY AND LIABILITIES |
10,383.8 |
10,223.1 |
(1) Restated from the
retrospective application of IFRS 16.
STATEMENT OF COMPREHENSIVE
INCOME
INCOME STATEMENT
In million
euros |
1st half of 2019 |
1st half of 2018
Restated (1) |
REVENUE |
1,651.4 |
1,447.8 |
Direct
operating expenses |
(556.3) |
(525.1) |
Selling,
general and administrative expenses |
(274.6) |
(265.3) |
OPERATING MARGIN |
820.5 |
657.4 |
Depreciation, amortisation and provisions (net) |
(642.0) |
(547.2) |
Impairment of goodwill |
0.0 |
0.0 |
Maintenance spare parts |
(17.0) |
(16.2) |
Other
operating income |
55.4 |
14.9 |
Other
operating expenses |
(10.9) |
(5.9) |
EBIT |
206.0 |
103.0 |
Interest expenses on IFRS 16 lease |
(83.3) |
(71.5) |
Financial income |
2.7 |
4.5 |
Financial expenses |
(17.9) |
(16.0) |
Net financial income (loss) excluding IFRS 16 |
(15.2) |
(11.5) |
NET FINANCIAL INCOME (LOSS) |
(98.5) |
(83.0) |
Income
tax |
(35.2) |
(4.8) |
Share of
net profit of companies under the equity method |
38.4 |
39.2 |
PROFIT FROM CONTINUING OPERATIONS |
110.7 |
54.4 |
Gain or
loss on discontinued operations |
0.0 |
0.0 |
CONSOLIDATED NET INCOME |
110.7 |
54.4 |
- Including non-controlling interests |
(14.7) |
(3.0) |
CONSOLIDATED NET INCOME (GROUP SHARE) |
96.0 |
51.4 |
Earnings
per share (in euros) |
0.451 |
0.242 |
Diluted
earnings per share (in euros) |
0.451 |
0.241 |
Weighted
average number of shares |
212,843,450 |
212,751,681 |
Weighted
average number of shares (diluted) |
212,889,680 |
212,853,014 |
(1) Restated from the
retrospective application of IFRS 16.
STATEMENT OF OTHER COMPREHENSIVE
INCOME
In million euros |
1st half of 2019 |
1st half of
2018 Restated (1) |
|
CONSOLIDATED NET INCOME |
110.7 |
54.4 |
|
Translation reserve adjustments on foreign operations (2) |
4.7 |
(7.2) |
Translation reserve adjustments on net foreign investments |
(0.2) |
(1.8) |
Cash flow
hedges |
(0.3) |
3.5 |
Tax on
the other comprehensive income subsequently released to net
income |
0.3 |
(0.5) |
Share of
other comprehensive income of companies under equity
method
(after tax) |
3.9 |
1.0 |
|
Other comprehensive income subsequently released to net
income |
8.4 |
(5.0) |
Change in
actuarial gains and losses on post-employment benefit plans and
assets ceiling |
(9.1) |
2.1 |
|
Tax on
the other comprehensive income not subsequently released to net
income |
2.4 |
(0.5) |
|
Share of
other comprehensive income of companies under equity
method
(after tax) |
(0.1) |
0.0 |
|
Other comprehensive income not subsequently released to net
income |
(6.8) |
1.6 |
Total other comprehensive income |
1.6 |
(3.4) |
TOTAL COMPREHENSIVE INCOME |
112.3 |
51.0 |
|
- Including non-controlling interests |
15.0 |
3.4 |
TOTAL COMPREHENSIVE INCOME - GROUP SHARE |
97.3 |
47.6 |
|
(1) Restated from the retrospective
application of IFRS 16.
(2) For the first half of 2019, translation
reserve adjustments on foreign operations are mainly related to
changes in exchange rates, of which mainly €2.7 million in
Mexico.
For the first half of 2018 restated, translation
reserve adjustments on foreign operations are mainly related to
changes in exchange rates, of which mainly €(8.6) million in
Brazil, €(3.5) million in Angola, €(3.3) million in South Africa,
€(1.1) million in Sweden, €(1.0) million in Australia, €2.0 million
in the United Arab Emirates, €2.9 million in Mexico and €8.5
million in Hong Kong. |
|
STATEMENT OF CASH FLOWS
In million
euros |
1st half of 2019 |
1st half of 2018
Restated (1) |
Net
income before tax |
145.9 |
54.9 |
Share of
net profit of companies under the equity method |
(38.4) |
(34.9) |
Dividends
received from companies under the equity method |
53.7 |
43.6 |
Expenses
related to share-based payments |
0.1 |
0.5 |
Depreciation, amortisation and provisions (net) |
640.6 |
546.7 |
Capital
gains and losses and net income (loss) on changes in scope |
(8.1) |
(12.3) |
Gains and
losses on lease contracts |
(41.6) |
(0.2) |
Net
discounting expenses |
4.7 |
2.5 |
Net
interest expense & interest expenses on IFRS 16 lease |
88.5 |
77.0 |
Financial
derivatives, translation adjustments and other |
2.2 |
2.4 |
Change in working capital |
(35.9) |
(44.1) |
Change in
inventories |
(56.8) |
(45.4) |
Change in
trade and other receivables |
8.8 |
(15.8) |
Change in
trade and other payables |
12.1 |
17.1 |
CASH FLOW FROM OPERATING ACTIVITIES |
811.7 |
636.1 |
Interest
paid on IFRS 16 lease |
(74.2) |
(64.2) |
Interest
paid |
(11.5) |
(22.2) |
Interest
received |
2.1 |
4.3 |
Income
tax paid |
(51.7) |
(10.9) |
NET CASH FLOW FROM OPERATING ACTIVITIES |
676.4 |
543.1 |
Cash
payments on acquisitions of intangible assets and property, plant
and equipment |
(140.5) |
(103.6) |
Cash
payments on acquisitions of financial assets (long-term
investments) net of cash acquired (2) |
(0.8) |
0.0 |
Acquisitions of other financial assets |
(1.1) |
(2.8) |
Total investments |
(142.4) |
(106.4) |
Cash
receipts on proceeds on disposals of intangible assets and
property, plant and equipment |
9.4 |
13.8 |
Cash
receipts on proceeds on disposals of financial assets (long-term
investments) net of cash sold (2) |
1.0 |
2.9 |
Proceeds
on disposals of other financial assets |
3.8 |
4.0 |
Total asset disposals |
14.2 |
20.7 |
NET CASH FLOW FROM INVESTING ACTIVITIES |
(128.2) |
(85.7) |
Dividends
paid |
(133.0) |
(131.7) |
Purshase
of treasury shares |
(1.0) |
- |
Cash
payments on acquisitions of non-controlling interests |
(2.9) |
(0.6) |
Payment
of long-term borrowings |
(28.9) |
(523.6) |
Payment
of lease liabilities |
(554.1) |
(449.7) |
Acquisitions and disposals of treasury financial assets |
24.6 |
222.3 |
Cash outflow from financing activities |
(695.3) |
(883.3) |
Cash
receipts on proceeds on disposal of interests without loss of
control |
4.7 |
- |
Capital
increase |
2.2 |
2.2 |
Increase
in long-term borrowings |
176.6 |
5.8 |
Cash inflow from financing activities |
183.5 |
8.0 |
NET CASH FLOW FROM FINANCING ACTIVITIES |
(511.8) |
(875.3) |
CHANGE IN NET CASH POSITION |
36.4 |
(417.9) |
Net cash position beginning of period |
88.0 |
715.5 |
Effect of
exchange rate fluctuations and other movements |
0.9 |
(10.2) |
Net cash position end of period (3) |
125.3 |
287.4 |
(1) Restated from the
retrospective application of IFRS 16.
(2) Including nil net cash acquired and sold for
the 1st half of 2019 and the 1st half of 2018.
(3) Including €132.3 million in cash and cash
equivalents and €7.0 million in bank overdrafts as of 30 June 2019, compared to €298.6 million and €11.2 million,
respectively, as of 30 June 2018. |
25-07-19 # H1 2019_UK_vDEF -
IP
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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