JCDecaux cancels 2019 dividend
March 25 2020 - 1:00PM
JCDecaux cancels 2019 dividend
JCDecaux cancels 2019
dividend
Paris, March 25th, 2020 – JCDecaux
SA (Euronext Paris: DEC), the number one outdoor
advertising company worldwide, announced today the withdrawal of
its 2019 dividend proposal in order to strengthen its liquidity,
its balance sheet, with one of the lowest leverage ratio in the OOH
media industry, as well as its financial flexibility in response to
the unprecedented global disruption due to the Covid-19
outbreak.
Jean-François Decaux, Chairman of the
Executive Board and Co-CEO of JCDecaux, said: “The world
has changed dramatically since March 5th when we announced our 2019
full-year results with now more than 2.6 billion people, a
third of the world population, in confinement due to the Covid-19.
As a consequence, we are now facing a global recession which is
likely to be worse than the downturn during the 2008 financial
crisis with the advertising market being hit badly.
Given the more substantial confinement measures
implemented in many large countries, the trading conditions are
worsening with additional campaigns cancellations and postponements
in March. For this reason, we are now withdrawing our Q1 2020
organic revenue growth guidance at around -10%. Q2 2020
revenue will be much more negatively impacted, due to the Covid-19
outbreak, almost everywhere, with countries such as Italy, Spain,
France, some US states and now UK implementing a total or partial
lockdown of residents. We will release our Q2 2020 guidance as
planned on May 12th, 2020.
As a consequence, upon the proposal of the
Executive Board, our Supervisory Board has decided to withdraw the
2019 dividend proposal from the resolutions to be adopted by the
next shareholders’ meeting in order to both strengthen our
liquidity and enhance our financial flexibility enabling us to take
advantage of market opportunities as we did in 2009.
While the health and safety of our employees
remain our top priority, we are implementing additional measures to
mitigate the negative impact of this crisis including but not
limited to cutting discretionary spend and capex, introducing
temporary unemployment measures, reducing employee hours and
introducing voluntary salary reduction. All stakeholders will need
to show support during this unprecedented crisis, and we welcome
the early decision from some airports, cities, transport
authorities around the world to aid concessionaires. This includes
for example, the suspension of the minimum annual guarantee payment
obligation, the adjustment of the base rent calculation
and / or the revenue share percentage.
It is impossible to predict the timing of the
rebound but we are taking all necessary steps to be ready and
strong to take advantage of market opportunities that may arise
because we continue to strongly believe that OOH / DOOH
will remain a very valuable media solution for international,
national and local advertisers delivering high quality audiences.
Our well diversified geographic portfolio will be beneficiary
because some countries will rebound earlier than others.”
Key Figures for JCDecaux
- 2019 revenue: €3,890m
- Present in 3,890 cities with more than 10,000 inhabitants
- A daily audience of more than 890 million people in more
than 80 countries
- 13,210 employees
- Leader in self-service bike rental scheme: pioneer in
eco-friendly mobility
- 1st Out-of-Home Media company to join the RE100 (committed to
100% renewable energy)
- JCDecaux is listed on the Eurolist of Euronext Paris and is
part of the Euronext 100 and Euronext Family Business indexes
- JCDecaux is recognised for its extra-financial performance in
the FTSE4Good index and the MSCI and CDP ‘A List’ rankings
- 1,061,630 advertising panels worldwide
- N°1 worldwide in street furniture (517,800 advertising
panels)
- N°1 worldwide in transport advertising with more than 160
airports and 270 contracts in metros, buses, trains and tramways
(379,970 advertising panels)
- N°1 in Europe for billboards (136,750 advertising panels)
- N°1 in outdoor advertising in Europe (636,620 advertising
panels)
- N°1 in outdoor advertising in Asia-Pacific (260,700 advertising
panels)
- N°1 in outdoor advertising in Latin America (69,490 advertising
panels)
- N°1 in outdoor advertising in Africa (22,760 advertising
panels)
- N°1 in outdoor advertising in the Middle East (15,510
advertising panels)
For more information about JCDecaux, please
visit jcdecaux.com. Join us on Twitter, LinkedIn, Facebook,
Instagram and YouTube.
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
- 25-03-20 # Annulation du dividende_UK_vDEF
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