JCDecaux : Q3 2024 - Business Review
Q3 2024 – Business review
Paris, November
7th, 2024 – JCDecaux
SE (Euronext Paris: DEC), the number one outdoor
advertising company worldwide, published today this report for the
third quarter of 2024 ending September 30th 2024.
THIRD QUARTER 2024: BUSINESS HIGHLIGHTS
Key contracts wins
In July, JCDecaux SE announced that JCDecaux
Macau, a joint-venture between JCDecaux (80% equity) and HN Group
(20% equity), has renewed its exclusive advertising contract with
Macau International Airport for a 10-year period, following a
competitive tender process. Running from July 1, 2024, this new
contract strengthens JCDecaux’s presence in Macau and follows the
award of the 15-year street furniture contract.
In September, JCDecaux SE announced that
following a competitive tender, it has been awarded the iconic
London bus shelter advertising contract by Transport for London
(TfL) for an 8-year period, with the option of a 2-year extension.
The contract will commence on 1st April 2025. This is the
second-largest bus shelter advertising contract in the world and
covers advertising on all TfL’s more than 4,700 advertising bus
shelters across all 33 London boroughs including the City of
London, Royal Borough of Kensington and Chelsea, and City of
Westminster. JCDecaux has held the previous contract since 2016.
The contract currently includes 612 x 86” digital screens and 9,400
non-digital poster sites on bus shelters.
In September, JCDecaux SE announced that
following a competitive tender, its Swedish company JCDecaux Sweden
AB has been awarded both the Stockholm bus shelter and the largest
central subway stations advertising contracts by the Greater
Stockholm Public Transport Authority (SL) for 7 years with the
possibility to extend for up to 6 months. The contracts will start
on January 1st, 2026. The bus shelter advertising contract covers
both digital and analogue advertising on over 1,500 bus shelters
throughout Stockholm County with a majority in Stockholm City. The
subway contract covers advertising at the 14 largest and busiest
subway stations and commuter train stations in Stockholm inner
city. The new contract will include spectacular large format
digital cross track screens.
Other events
In July, JCDecaux SE announced that its carbon
reduction trajectory has been approved by the Science Based Targets
initiative (SBTi). Known as the “Corporate Net Zero norm”, this
climate action organisation supports companies worldwide in their
reduction of greenhouse gas (GHG) emissions and their
decarbonisation via a methodology consistent with the IPCC’s
recommendations. This validation, the most ambitious designation
available through the SBTi process, reaffirms JCDecaux’s commitment
to actively participate in the fight against climate change by
adopting eco-responsible practices and promoting sustainable
innovation in its business practices.
THIRD QUARTER 2024 AND OUTLOOK
Commenting on the 2024 third quarter revenue,
Jean-Charles Decaux, Chairman of the Executive Board and
Co-CEO of JCDecaux, said:
“Our Q3 2024 Group revenue grew by +10.9%,
+11.1% on an organic basis, above our expectations, to reach €948.2
million with a solid business momentum across all segments and
geographies, mainly driven by continued strong digital revenue
growth, while France benefited from the positive impact of the
Paris Olympic and Paralympic Games.
Digital Out Of Home (DOOH) revenue grew by
+17.8%, +18.5% on an organic basis, to reach a new record high of
38.5% of Group revenue including an ongoing strong programmatic
revenue growth.
All business segments recorded strong
organic revenue growth: Street Furniture grew by +8.8% with
continued solid momentum, Transport grew by +15.5% reflecting the
strong growth in both airports and public transport systems and
Billboard grew by +7.9% driven by solid momentum across
markets.
France and UK delivered strong double-digit
organic revenue growth with all other geographies growing high
single-digit. Our business in China, while still well below
pre-covid levels, grew double-digit with an increased digital
penetration.
As far as Q4 is concerned and bearing in
mind our record Q4 last year, we expect a low single-digit organic
revenue growth rate, including continued solid development of
digital revenue and reflecting some macro uncertainties such as
ongoing debates about government budgets in France and UK, while
China is expected to be around flat due to low consumer
demand.
We are confident that Out of Home (OOH) will
continue to grow its market share in a fragmented media landscape
with Digital Out of Home (DOOH) being the fastest growing media
segment. JCDecaux as the industry leader and the most digitised
global OOH Media company is well positioned to benefit from this
digital transformation.”
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 report 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 2024
increased by +10.9% to €948.2 million compared to
€855.0 million in the third quarter of 2023.
Excluding the negative impact from foreign exchange variations and
the positive impact of changes in perimeter, adjusted revenue
increased by +11.1%.
Adjusted advertising revenue, excluding revenue related to sale,
rental and maintenance of street furniture and advertising
displays, increased by +10.4% on an organic basis in the third
quarter of 2024.
By activity:
|
Q3 adjusted revenue |
2024 (€m) |
2023 (€m) |
Reported growth |
Organic growth(a) |
|
Street Furniture |
468.5 |
432.0 |
+8.4% |
+8.8% |
|
Transport |
346.9 |
302.1 |
+14.8% |
+15.5% |
|
Billboard |
132.7 |
120.8 |
+9.8% |
+7.9% |
|
Total |
948.2 |
855.0 |
+10.9% |
+11.1% |
(a) Excluding acquisitions/divestitures and the impact of
foreign exchange
|
9-month adjusted revenue |
2024 (€m) |
2023 (€m) |
Reported growth |
Organic growth(a) |
|
Street Furniture |
1,386.4 |
1,254.7 |
+10.5% |
+10.0% |
|
Transport |
980.8 |
838.8 |
+16.9% |
+17.6% |
|
Billboard |
388.6 |
346.5 |
+12.2% |
+9.5% |
|
Total |
2,755.8 |
2,440.0 |
+12.9% |
+12.6% |
(a) Excluding acquisitions/divestitures and the impact of
foreign exchange
Please note that the geographic comments below
refer to organic revenue growth.
STREET FURNITURE
Third quarter adjusted revenue increased by
+8.4% to €468.5 million (+8.8% on an organic basis). France
driven by the Paris Olympic and Paralympic Games, UK and Rest of
the World grew double-digit. North America and Asia-Pacific
recorded high single-digit growth.
Third quarter adjusted advertising revenue,
excluding revenue related to sale, rental and maintenance of street
furniture was up +7.3% on an organic basis.
TRANSPORT
Third quarter adjusted revenue increased by
+14.8% to €346.9 million (+15.5% on an organic basis). France,
UK, Rest of Europe and Asia-Pacific grew double-digit.
BILLBOARD
Third quarter adjusted revenue increased by
+9.8% to €132.7 million (+7.9% on an organic basis). France
and Rest of Europe grew double-digit. North America and Rest of the
World recorded high-single digit growth.
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 2024, the impact of IFRS 11 on adjusted revenue was
-€76.1 million (-€66.0 million in Q3 2023), leaving
IFRS revenue at €872.0 million (€789.0 million in
Q3 2023). For the first nine months of 2024, the impact of
IFRS 11 on adjusted revenue was -€217.1 million
(-€184.1 million for the first nine months of 2023), leaving
IFRS revenue at €2,538.7 million (€2,255.9 million for
the first nine months of 2023).
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 |
Q3 |
9M |
|
|
|
|
|
|
|
|
|
2023 adjusted revenue |
(a) |
721.3 |
863.7 |
1,585.0 |
855.0 |
2,440.0 |
|
|
|
|
|
|
|
|
|
2024 IFRS revenue |
(b) |
740.4 |
926.3 |
1,666.7 |
872.0 |
2,538.7 |
|
IFRS 11 impacts |
(c) |
61.2 |
79.8 |
141.0 |
76.1 |
217.1 |
|
2024 adjusted revenue |
(d) = (b) + (c) |
801.6 |
1,006.1 |
1,807.6 |
948.2 |
2,755.8 |
|
Currency impacts |
(e) |
7.1 |
0.2 |
7.3 |
5.4 |
12.8 |
|
2024 adjusted revenue at 2023 exchange rates |
(f) = (d) + (e) |
808.7 |
1,006.3 |
1,814.9 |
953.7 |
2,768.6 |
|
Change in scope |
(g) |
-8.4 |
-9.8 |
-18.2 |
-4.1 |
-22.3 |
|
2024 adjusted organic revenue |
(h) = (f) + (g) |
800.3 |
996.5 |
1,796.8 |
949.5 |
2,746.3 |
|
|
|
|
|
|
|
|
|
Organic growth |
(i) = (h)/(a)-1 |
+11.0% |
+15.4% |
+13.4% |
+11.1% |
+12.6% |
€m |
Impact of currency as of September
30th,
2024 |
|
|
|
|
CNY |
4.6 |
|
BRL |
4.0 |
|
AUD |
2.3 |
|
GBP |
-7.0 |
|
Other |
8.9 |
|
|
|
|
Total |
12.8 |
|
Average exchange rate |
9M 2024 |
9M 2023 |
|
|
|
|
|
CNY |
0.1278 |
0.1312 |
|
BRL |
0.1757 |
0.1843 |
|
AUD |
0.6091 |
0.6170 |
|
GBP |
1.1744 |
1.1484 |
Forward looking statements
This report 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 report, 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 universal registration document
registered in France with the French Autorité des Marchés
Financiers.
Investors and holders of shares of the Company may obtain copy of
such universal registration document 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.
FINANCIAL SITUATION
The evolution of revenue is the major factor
which to impact the operating margin, free cash flow or net debt
during Q3 2024.
- 07-11-24 # T3 2024_Business Review_UK
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