JCDecaux : Q1 2023 trading update
Q1 2023
trading update
-
Q1 2023
adjusted revenue up
+5.6%
to
€721.3 million
-
Q1 2023
adjusted organic revenue up
+5.0%
-
Q2 2023
adjusted organic revenue growth expected
to be around
+9%
Paris, May
11th,
2023 – JCDecaux
SE (Euronext Paris: DEC), the number one
Out-of-Home Media company worldwide, announced today its revenue
for the first quarter 2023.
Commenting on the 2023 first quarter revenue,
Jean-Charles Decaux,
Chairman of the Executive Board and Co-CEO of JCDecaux,
said:
“Our Q1 2023 Group revenue grew by +5.6%, +5.0%
on an organic basis, to reach €721.3 million, above our
expectations driven by a strong digital revenue growth, an
increasing revenue growth throughout the quarter and, as
anticipated, an inflection point from March in China. Our Q1 2023
organic revenue growth reached +8.2% outside China and -14.0% in
China.
Digital Out-Of-Home (DOOH) grew by +13.3% in
reported growth and +13.6% organically in Q1 2023, to reach 31.2%
of Group revenue vs 29.1% in Q1 2022 including a continued strong
momentum of the programmatic advertising sales ecosystem through
the VIOOH SSP (Supply Side Platform) and Displayce DSP (Demand Side
Platform).
By activity, Street Furniture was strong at
+4.1% organically in Q1 2023 and was above Q1 2019 globally
including double-digit above Q1 2019 in France and Rest of Europe;
Billboard grew by +1.0% on an organic basis in Q1 2023, above Q1
2019 in Asia-Pacific and North-America; Transport grew strongly by
+7.9% organically, including a double-digit revenue growth in
France, Rest of Europe, UK and Rest of the World reflecting the
ongoing audience recovery in both airports and public transport
across most regions with Rest of the World above 2019 in Q1. From a
historically low level of activity, China improved throughout the
quarter following the end of mobility restrictions at the end of
2022.
By geography, Rest of the World, Asia-Pacific
excluding China, France and Rest of Europe were the fastest growing
regions while revenue for North America and China decreased in Q1
2023 but the trading momentum improved significantly in these two
geographies in March.
As far as Q2 is concerned, we expect organic
revenue growth around +9% mostly driven by a strong digital growth
and a gradual recovery in China while advertising sales in most
geographies remain solid.
In China, we are seeing encouraging signs of
recovery with domestic mobility now back to normal leading us to a
strong year-on-year double-digit revenue growth in Q2. As domestic
air travel reached an all-time high for the Labor Day holiday, our
domestic airport business is expected to almost recover to
pre-Covid levels in Q2, in line with the air traffic rebound. Our
strong revenue growth in China for Q2 is nevertheless affected by
low international air traffic due to much reduced international
airlines connections and the non-renewal of the Guangzhou
International Terminal 2 airport advertising contract as well as
our decision to mutually terminate our joint venture with Guangzhou
metro.
As the most digitised global OOH media 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, the high quality of
our teams across the world and our recognised ESG excellence, 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 drive economic growth as
well as 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” 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 first quarter 2023
increased by +5.6% to €721.3 million compared to
€683.0 million in the first quarter of 2022.
Excluding the negative impact from foreign
exchange variations and the positive impact of changes in
perimeter, adjusted revenue increased by +5.0%.
Adjusted advertising revenue, excluding revenue
related to sale, rental and maintenance of street furniture and
advertising displays, increased by +4.2% on an organic basis in the
first quarter of 2023.
By activity:
Q1 adjusted revenue |
2023 (€m) |
2022 (€m) |
Reported growth |
Organic growth(a) |
Street Furniture |
364.3 |
347.5 |
+4.8% |
+4.1% |
Transport |
254.0 |
234.9 |
+8.1% |
+7.9% |
Billboard |
103.0 |
100.6 |
+2.4% |
+1.0% |
Total |
721.3 |
683.0 |
+5.6% |
+5.0% |
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
+4.8% to €364.3 million (+4.1% on an organic basis). Rest of
the World, France, Rest of Europe and Asia-Pacific were the drivers
of growth while UK and North America registered a single-digit
revenue decrease vs Q1 2022. France, Rest of Europe and Rest of the
World were above Q1 2019 revenue levels.
First quarter adjusted advertising revenue,
excluding revenue related to sale, rental and maintenance of street
furniture was up +3.9% on an organic basis compared to the first
quarter of 2022.
TRANSPORT
First quarter adjusted revenue increased by
+8.1% to €254.0 million (+7.9% on an organic basis),
reflecting a rebound in both air passenger traffic and public
transport systems. Most geographies grew double-digit and Rest of
the World was already above Q1 2019 revenue levels. Transport
remained nevertheless meaningfully impacted by the lower level of
mobility compared to pre-Covid levels, particularly for China
international air travel.
BILLBOARD
First quarter adjusted revenue increased by
+2.4% to €103.0 million (+1.0% on an organic basis).
Asia-Pacific and North America were above Q1 2019 revenue
levels.
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 Q1 2023, the impact of IFRS 11 on
adjusted revenue was -€49.5 million (-€54.4 million in
Q1 2022), leaving IFRS revenue at €671.8 million
(€628.5 million in Q1 2022).
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 |
|
|
|
2022 adjusted
revenue |
(a) |
683.0 |
|
|
|
2023 IFRS
revenue |
(b) |
671.8 |
IFRS 11 impacts |
(c) |
49.5 |
2023 adjusted
revenue |
(d) = (b) + (c) |
721.3 |
Currency impacts |
(e) |
1.2 |
2023 adjusted revenue at
2022 exchange rates |
(f) = (d) + (e) |
722.5 |
Change in scope |
(g) |
-5.7 |
2023 adjusted organic
revenue |
(h) = (f) + (g) |
716.8 |
|
|
|
Organic growth |
(i) = (h) / (a)
– 1 |
+5.0% |
€m |
Impact of currency as of
March
31st,
2023 |
|
|
RMB |
1.7 |
USD |
-2.1 |
GBP |
3.7 |
HKD |
-1.1 |
Other |
-1.0 |
|
|
Total |
1.2 |
Average exchange rate |
Q1 2023 |
Q1
2022 |
|
|
|
RMB |
0.1362 |
0.1404 |
USD |
0.9320 |
0.8915 |
GBP |
1.1324 |
1.1956 |
HKD |
0.1189 |
0.1142 |
Next information:Annual General Meeting of
Shareholders: May 16th, 20232023 half year results: July 27th, 2023
(before market) |
Key Figures for JCDecaux
- 2022 revenue:
€3,317m(a)
- N°1 Out-of-Home
Media company worldwide
- A daily audience
of more than 850 million people in more than 80 countries
- 1,040,132
advertising panels worldwide
- Present in 3,573
cities with more than 10,000 inhabitants
- 11,200
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
(3.6/5), CDP (A- Leadership), MSCI (AA) and has achieved Platinum
Medal status from EcoVadis
- 1st Out-of-Home
Media company to join the RE100
- Leader in
self-service bike rental scheme: pioneer in eco-friendly
mobility
- N°1 worldwide in
street furniture (604,536 advertising panels)
- N°1 worldwide in
transport advertising with 153 airports and 205 contracts in
metros, buses, trains and tramways (333,620 advertising
panels)
- N°1 in Europe
for billboards (101,976 advertising panels worldwide)
- N°1 in outdoor
advertising in Europe (654,957 advertising panels)
- N°1 in outdoor
advertising in Asia-Pacific (170,973 advertising panels)
- N°1 in outdoor
advertising in Latin America (129,305 advertising panels)
- N°1 in outdoor
advertising in Africa (24,198 advertising panels)
- N°1 in outdoor
advertising in the Middle East (19,371 advertising panels)
(a) Adjusted
revenue
For more information about JCDecaux, please
visit jcdecaux.com.
Join us on Twitter, LinkedIn, Facebook,
Instagram and YouTube.
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: Albert Asséraf+33 (0)
1 30 79 79 10 – albert.asseraf@jcdecaux.com
Investor
Relations: Rémi Grisard+33 (0) 1
30 79 79 93 – remi.grisard@jcdecaux.com
- 11-05-23 # JCDecaux Q1 2023_ENG
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