JCDecaux: Q3 2021 trading update
Q3 2021
trading update
- Third
quarter 2021 adjusted
revenue up
+30.5% to
€706.5m
- Third
quarter 2021 adjusted organic
revenue up
+28.6%
- Organic
revenue growth for Q4
2021 expected to be
above +20%
Paris,
November
4th,
2021 – JCDecaux SA
(Euronext Paris: DEC), the number one Out-of-Home Media company
worldwide, announced today its revenue for the nine months ended
September 30th, 2021.
Commenting on the 2021 third quarter revenue,
Jean-François Decaux,
Chairman of the Executive Board and Co-CEO of JCDecaux,
said:
“With +30.5% revenue growth and +28.6%
organically, our Q3 2021 group revenue reached €706.5m. This strong
rebound, above our expectations despite significant and sometimes
unforeseen mobility restrictions (such as regional lockdowns in
Asia-Pacific and ongoing international flight restrictions all over
the world), demonstrates the growth potential of our media,
especially once mobility restrictions are lifted.
By activity, Street Furniture and Billboard
(roadside) were strong and already back to Q3 2019 levels in Europe
(including the UK), while Transport remained meaningfully impacted
by ongoing restrictions on global international passenger traffic
and, to a lesser extent, by lower commuter traffic in public
transport than pre-pandemic, although improving throughout the
quarter.
By geography, France and Rest of Europe recorded
a significant improvement in Q3 2021, driven by roadside. For the
United Kingdom, roadside was strong as well while Transport (large
segment in the UK) recorded a low level of activity, although
significantly improving vs 2020. North America, Asia-Pacific and
Rest of the World recorded also a strong rebound vs 2020 but
remained the most affected regions across the 3 business segments,
mainly due to their Transport exposure and to local mobility
restrictions (especially in Asia-Pacific). In China, activities
exposed to domestic audiences (mainly metros, buses, domestic
airport terminals and street furniture in Hong Kong SAR and Macau
SAR), are almost back to pre-Covid levels, while international
terminals are still impacted by very low passenger traffic.
Digital Out Of Home (DOOH) grew by +55.8% yoy
and reached 24.5% of Group revenue year-to-date. We continued to
accelerate our digital transformation and maintained our focus on
the roll-out of digital screens and on the development of our
automated data-driven planning and trading solutions. Programmatic
trading gained good momentum via the VIOOH platform which is now
connected to 34 DSPs (Demand Side Platforms) and trading in 14
countries.
Given the ongoing rebound, we now expect an
organic revenue growth for Q4 2021 of above +20% provided that
mobility restrictions do not rise significantly.
As the most digitised global OOH company with
our new data-led audience targeting and programmatic solutions, our
well diversified portfolio, our ability to win new contracts, the
strength of our balance sheet and the high quality of our teams
across the world, we believe we are well positioned to benefit from
the rebound. We are more than ever confident in the power of our
media in an advertising landscape increasingly fragmented and more
and more digital and in the role it will play to support the
economic recovery as well as to drive positive changes.”
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 pages 2 and 3 of this
release for the definition of adjusted data and reconciliation with
IFRS.The values shown in the tables are generally expressed in
millions of euros. The sum of the rounded amounts or variations
calculations may differ, albeit to an insignificant extent, from
the reported values.
Adjusted revenue for the third quarter of 2021
increased by +30.5% to €706.5 million compared to
€541.2 million in the third quarter of 2020.Excluding the
positive impact from foreign exchange variations and the positive
impact from changes in perimeter, adjusted organic revenue
increased by +28.6%.Adjusted organic advertising revenue, excluding
revenue related to sale, rental and maintenance of street furniture
and advertising displays, increased by +29.8% in the third quarter
of 2021.
Q3 adjusted revenue |
2021 (€m) |
2020 (€m) |
Reported growth |
Organic growth(a) |
Street Furniture |
369.2 |
281.7 |
+31.1% |
+29.4% |
Transport |
231.8 |
172.6 |
+34.3% |
+32.2% |
Billboard |
105.5 |
87.0 |
+21.3% |
+19.0% |
Total |
706.5 |
541.2 |
+30.5% |
+28.6% |
(a) Excluding acquisitions/divestitures
and the impact of foreign exchange
9-month adjusted revenue |
2021
(€m) |
2020 (€m) |
Reported growth |
Organic growth(a) |
Street Furniture |
930.8 |
761.6 |
+22,2% |
+21,7% |
Transport |
570.2 |
595.5 |
-4,3% |
-2,4% |
Billboard |
287.9 |
259.6 |
+10,9% |
+13,6% |
Total |
1,788.8 |
1,616.7 |
+10,6% |
+11,5% |
(a) Excluding acquisitions/divestitures and the impact of
foreign exchange
Please note that the geographic comments
hereafter refer to organic revenue growth.
STREET FURNITURE
Third quarter adjusted revenue increased by
+31.1% to €369.2 million (+29.4% on an organic basis). France,
UK and Rest of Europe performed strongly in line or above pre-Covid
levels. North America, Asia-Pacific and Rest of the World remained
affected by local restrictions on mobility linked to Covid19
despite a very strong improvement yoy.Third quarter adjusted
organic advertising revenue, excluding revenue related to sale,
rental and maintenance of street furniture were up +32.3% compared
to the third quarter of 2020.
TRANSPORT
Third quarter adjusted revenue increased by
+34.3% to €231.8 million (+32.2% on an organic basis), thanks
to the rebound in public transport and domestic airports in China
and US. All regions are growing positively yoy except France and
North America (due to the end of the New-York airport
contract).
BILLBOARD
Third quarter adjusted revenue increased by
+21.3% to €105.5 million (+19.0% on an organic basis). All
regions are growing strongly yoy except France.
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 by directors 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 Q3 2021, the impact of IFRS 11 on adjusted
revenue was -€59.4 million (-€46.2 million in
Q3 2020), leaving IFRS revenue at €647.1 million
(€495.0 million in Q3 2020).For the first nine months of
2021, the impact of IFRS 11 on adjusted revenue was
-€147.4 million(-€153.1 million for the first nine months
of 2020), leaving IFRS revenue at €1,641.5 million
(€1,463.6 million for the first nine months of 2020).
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 |
Q3 |
9M |
2020 adjusted
revenue |
(a) |
723.6 |
351.9 |
541.2 |
1,616.7 |
2021 IFRS
revenue |
(b) |
416.7 |
577.7 |
647.1 |
1,641.5 |
IFRS 11 impacts |
(c) |
37.6 |
50.3 |
59.4 |
147.4 |
2021 adjusted
revenue |
(d) = (b) + (c) |
454.3 |
628.1 |
706.5 |
1,788.8 |
Currency impacts |
(e) |
10.6 |
4.8 |
-6.6 |
8.8 |
2021 adjusted revenue at
2020 exchange rates |
(f) = (d) + (e) |
464.9 |
632.8 |
699.9 |
1,797.6 |
Change in scope |
(g) |
8.0 |
1.0 |
-3.8 |
5.2 |
2021 adjusted organic
revenue |
(h) = (f) + (g) |
472.9 |
634.0 |
696.1 |
1,802.9 |
Organic growth |
(i) = (h) / (a)
- 1 |
-34.6% |
+80.2% |
+28.6% |
+11.5% |
|
€m |
Impact of currency as of
September
30th,
2021 |
USD |
5.9 |
HKD |
5.0 |
AUD |
-6.3 |
RMB |
-3.8 |
Other |
7.7 |
Total |
8.8 |
Average exchange rate |
9M 2021 |
9M 2020 |
USD |
0.8360 |
0.8889 |
HKD |
0.1076 |
0.1146 |
AUD |
0.6341 |
0.6014 |
RMB |
0.1292 |
0.1271 |
Next information:Q4 2021 revenue: January 27th,
2022 (after market) |
Key Figures for JCDecaux
- 2020 revenue: €2,312m – 9M 2021
revenue: €1,789m
- N°1 Out-of-Home Media company
worldwide
- A daily audience of more than 840
million people in more than 80 countries
- 964,760 advertising panels
worldwide
- Present in 3,670 cities with more
than 10,000 inhabitants
- 10,230 employees
- 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 (4.6/5) and CDP (A
Leadership) rankings, and has obtained the MSCI AAA score for the
4th year in a row
- 1st Out-of-Home Media company to
join the RE100 (committed to 100% renewable energy)
- Leader in self-service bike rental
scheme: pioneer in eco-friendly mobility
- N°1 worldwide in street furniture
(489,500 advertising panels)
- N°1 worldwide in transport
advertising with 156 airports and 249 contracts in metros, buses,
trains and tramways (329,790 advertising panels)
- N°1 in Europe for billboards
(129,970 advertising panels)
- N°1 in outdoor advertising in
Europe (615,530 advertising panels)
- N°1 in outdoor advertising in
Asia-Pacific (216,590 advertising panels)
- N°1 in outdoor advertising in Latin
America (66,120 advertising panels)
- N°1 in outdoor advertising in
Africa (22,500 advertising panels)
- N°1 in outdoor advertising in the
Middle East (15,350 advertising panels)
For more information about JCDecaux, please
visit jcdecaux.com. Join us on Twitter, Linkedin, Facebook,
Instagram and Youtube.
Forward looking statementsThis
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: Albert Asséraf+33 (0)
1 30 79 35 68 – albert.asseraf@jcdecaux.com
Investor
Relations: Rémi Grisard+33 (0) 1
30 79 79 93 – remi.grisard@jcdecaux.com
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