JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its revenue for the full-year 2019.

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 page 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.

2019 adjusted revenue increased by +7.5% to €3,890.2 million compared to €3,618.5 million in 2018. Excluding the positive impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted organic revenue grew by +2.0%.
Adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by +2.1% in 2019.

Adjusted revenue of the fourth quarter of 2019 increased by +1.3% to €1,122.0 million compared to €1,107.5 million in Q4 2018. Excluding the positive impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted organic revenue decreased by -1.5%.
Adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, decreased by -1.7% in the fourth quarter of 2019.

By activity:

(a) Excluding acquisitions/divestitures and the impact of foreign exchange
(a) Excluding acquisitions/divestitures and the impact of foreign exchange

By geographic area:

(a) Excluding acquisitions/divestitures and the impact of foreign exchange
(b) Excluding France and the United Kingdom

Please note that the geographic comments hereafter refer to organic revenue growth.

STREET FURNITURE
Full-year adjusted revenue increased by +6.3% to €1,688.2 million (+5.3% on an organic basis). Europe (including France and UK) was up mid-single-digit with a good performance in France and the Rest of Europe while UK was negatively impacted by the HFSS (High Fat, Salt and Sugar products) advertising ban on TfL assets, including bus shelters. Asia-Pacific and North America delivered high-single-digit growth. The Rest of the World was up.

In the fourth quarter, adjusted revenue increased by +5.7% to €507.3 million (+4.8% on an organic basis). Europe (including France and UK) was up with a strong performance in UK. Asia-Pacific was down. North America was up double-digit. The Rest of the World was slightly up.
Fourth quarter adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture were up +3.2% compared to the fourth quarter of 2018.

TRANSPORT
Full-year adjusted revenue increased by +7.9% to €1,636.4 million (+0.3% on an organic basis). Asia-Pacific showed negative growth, impacted in the second half of the year, by a deterioration in our metro business in China, notably in Hong Kong, while our airport business in China was strong. Europe (including France and UK) was up, with a good performance in France and UK. North America was up double-digit while the Rest of the World delivered good growth.

In the fourth quarter, adjusted revenue decreased by -3.0% to €458.7 million (-6.9% on an organic basis). Asia-Pacific showed negative growth, impacted by a further deterioration in our metro business in China, notably in Hong Kong, while our airport business in China remained solid. Europe (including France and UK) was down impacted by the non-renewal of the AENA Spanish national airport loss-making contract while France and UK were up. North America and the Rest of the World posted double-digit growth.

BILLBOARD
Full-year adjusted revenue increased by +10.1% to €565.6 million (-3.5% on an organic basis). Reported growth was fuelled by the contribution of APN Outdoor. Europe (including France and UK) was slightly down, affected by challenging market conditions in France despite an improving UK performance over the year thanks to the rationalisation and digitisation of our UK billboard assets. The Rest of the World was down. Asia-Pacific reported negative growth reflecting the major slowdown in the economy in Australia. North America was up double-digit.

In the fourth quarter, adjusted revenue increased by +0.7% to €156.0 million (-4.3% on an organic basis). Europe (including France and UK) was down, affected by France but offset by a double-digit performance in UK. The Rest of the World was down. Asia-Pacific reported negative growth due to Australia. North America posted a strong double-digit growth.
Commenting on the Group's 2019 revenue performance, Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:

'JCDecaux, the world's largest Out-of-Home media company, achieved another year of record revenue in 2019 at €3,890.2 million, growing at +7.5% with an organic growth rate of +2%. Digital advertising revenue were up +33% including a small but incremental contribution from programmatic and now represent 25.2% of total revenue. This clearly demonstrates the commercial success of our digitisation strategy, which we are now rolling out in more markets around the world. Our well diversified geographic country portfolio was key to offset the weakness of our biggest market, China, in the second half, with a strong performance in the US market and good sales results in Europe which still represents more than 50% of total revenue.

Street Furniture with a +5.3% organic revenue growth was driven by a very strong digital revenue increase at +28.6%, representing 21.9% of total Street Furniture revenue. Transport posted a positive organic revenue growth at +0.3% impacted in the second half of the year by a deterioration in our business in China, notably in Hong Kong, partially offset by a strong digital revenue increase at +26.7% which represent 30.3% of total Transport revenue. Billboard recorded a -3.5% organic revenue decline, affected by challenging market conditions in France and in the Rest of the World, despite the positive impact from the rationalisation and digitisation of our UK billboard assets and a strong Group digital billboard revenue increase at +95.5% representing 20.6% of total Billboard revenue. Group digital revenue remained concentrated with 71% coming from 5 markets (UK, US, Australia, Germany and China).

As usual, we will provide guidance for Q1 when we release our full-year 2019 results on March 5th, 2020.

In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well diversified geographic country portfolio, 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 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 Q4 2019, the impact of IFRS 11 on adjusted revenue was -€118.0 million (-€133.6 million in Q4 2018), leaving IFRS revenue at €1,004.1 million (€973.9 million in Q4 2018).
For the full-year 2019, the impact of IFRS 11 on adjusted revenue was -€402.6 million (-€437.1 million for the full-year 2018), leaving IFRS revenue at €3,487.6 million (€3,181.4 million for the full-year 2018).
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.

Next information:
2019 annual results: March 5th, 2020 (before market)

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.

Attachments

  • Original document
  • Permalink

Disclaimer

JCDecaux SA published this content on 30 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2020 20:14:03 UTC