Q3 2020 trading update
- Third quarter 2020 adjusted revenue down -41.5% to €541.2m
- Third quarter 2020 adjusted organic revenue down -37.9%
- No quarterly guidance on adjusted organic revenue growth due to Covid‑19
Following the adoption of IFRS 11 from
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 2020 decreased by -41.5% to €541.2 million compared to €925.8 million in the third quarter of 2019.
Excluding the negative impact from foreign exchange variations and the negative impact from changes in perimeter, adjusted organic revenue declined by -37.9%.
Adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, decreased by -39.3% in the third quarter of 2020.
Q3 adjusted revenue | 2020 (€m) | 2019 (€m) | Reported growth | Organic growth(a) |
281.7 | 390.4 | -27.8% | -26.5% | |
Transport | 172.6 | 400.7 | -56.9% | -52.0% |
Billboard | 87.0 | 134.8 | -35.5% | -28.7% |
Total | 541.2 | 925.8 | -41.5% | -37.9% |
(a) Excluding acquisitions/divestitures and the impact of foreign exchange |
9-month adjusted revenue | 2020 (€m) | 2019 (€m) | Reported growth | Organic growth(a) |
761.6 | 1,180.9 | -35.5% | -34.8% | |
Transport | 595.5 | 1,177.7 | -49.4% | -46.9% |
Billboard | 259.6 | 409.5 | -36.6% | -34.3% |
Total | 1,616.7 | 2,768.1 | -41.6% | -39.9% |
(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 decreased by -27.8% to €281.7 million (-26.5% on an organic basis), but with diverging trends market by market, depending on measures taken by national governments and local authorities such as lockdowns or curfews.
Third quarter adjusted organic advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture were down -28.7% compared to the third quarter of 2019.
TRANSPORT
Third quarter adjusted revenue decreased by -56.9% to €172.6 million (-52.0% on an organic basis), significantly impacted by the Covid-19 outbreak, reflecting a strong decline globally in both airport passenger traffic as well as public transport commuting.
BILLBOARD
Third quarter adjusted revenue decreased by -35.5% to €87.0 million (-28.7% on an organic basis), but with diverging trends market by market as well, depending on measures taken by national governments and local authorities.
Commenting on the 2020 third quarter revenue,
“Our Q3 2020 organic revenue decline at -37.9% was less than Q2 2020 (-63.4%) but remained highly affected by the Covid-19 pandemic. This improvement was driven by the post-lockdown urban audience recovery which was nonetheless not the same all over the world. This explains the better performance of both
By geography,
As far as digital revenue, which represents 23.6% of Group revenue by the end of
While we do not see any real change in current trading compared to Q3 2020 but with Covid‑19 cases growth throughout the world triggering new mobility restrictions such as lockdowns, curfews, closures of restaurants, cinemas, … it remains impossible to give any guidance for Q4 2020.
In order to mitigate the revenue decline, JCDecaux remains highly focused and proactive in dedicated actions including but not limited to rents & fees reliefs, severe cost management, reduced capital investment, tight control over working capital requirement and debt refinancing.
Finally, I would like to sincerely thank for the hard work, commitment and motivation of our teams across the world.
In a media landscape increasingly fragmented and more and more digital, out-of-home and digital out‑of‑home advertising reinforce its attractiveness. As the most digitised global OOH company with our new data-led audience targeting and programmatic platform, 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.”
ADJUSTED DATA
Under IFRS 11, applicable from
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 2020, the impact of IFRS 11 on adjusted revenue was -€46.2 million (-€93.7 million in Q3 2019), leaving IFRS revenue at €495.0 million (€832.1 million in Q3 2019).
For the first nine months of 2020, the impact of IFRS 11 on adjusted revenue was -€153.1 million (-€284.6 million for the first nine months of 2019), leaving IFRS revenue at €1,463.6 million (€2,483.5 million for the first nine months of 2019).
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 | |
2019 adjusted revenue | (a) | 840.0 | 1,002.3 | 925.8 | 2,768.1 |
2020 IFRS revenue | (b) | 658.2 | 310.4 | 495.0 | 1,463.6 |
IFRS 11 impacts | (c) | 65.4 | 41.5 | 46.2 | 153.1 |
2020 adjusted revenue | (d) = (b) + (c) | 723.6 | 351.8 | 541.2 | 1,616.7 |
Currency impacts | (e) | 1.7 | 8.0 | 15.5 | 25.2 |
2020 adjusted revenue at 2019 exchange rates | (f) = (d) + (e) | 725.3 | 359.9 | 556.7 | 1,641.9 |
Change in scope | (g) | (2.3) | 7.0 | 18.4 | 23.1 |
2020 adjusted organic revenue | (h) = (f) + (g) | 723.0 | 366.8 | 575.2 | 1,665.0 |
Organic growth | (i) = (h) / (a) | -13.9% | -63.4% | -37.9% | -39.9% |
€m | Impact of currency as of |
BRL | 7.2 |
RMB | 3.8 |
AUD | 3.2 |
MXN | 1.9 |
Other | 9.1 |
Total | 25.2 |
Average exchange rate | 9M 2020 | 9M 2019 |
BRL | 0.1751 | 0.2291 |
RMB | 0.1271 | 0.1296 |
AUD | 0.6014 | 0.6220 |
MXN | 0.0408 | 0.0462 |
Next information:
Q4 2020 revenue:
- 2019 revenue: €3,890m, H1 2020 revenue: €1,075m
- 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.
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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
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.
+33 (0) 1 30 79 34 99 – agathe.albertini@jcdecaux.com
Investor Relations:
+33 (0) 1 30 79 79 93 – arnaud.courtial@jcdecaux.com
Attachment
05-11-20 # Q3 2020_UK_vDEF
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