Ströer achieves growth forecast: robust growth in Q3 bucks the market trends

Ströer SE & Co. KGaA is presenting its results for the third quarter of 2022. Despite the challenges to the economy stemming from the war in Ukraine, high inflation, and rising energy and consumer prices, Ströer recorded healthy results in the first nine months of 2022 in line with its own targets and market expectations. This was largely attributable to its broad portfolio of customers, strong growth in DOOH, and its excellent positioning in the German advertising market.

Consolidated revenue rose by 13% from EUR 1.1b to EUR 1.25b in the first nine months of 2022. Organic revenue growth came to 13.5%. EBITDA (adjusted) climbed by 11% to EUR 354m over the same period.

Given the current backdrop, the diversified customer base in the out-of-home business puts Ströer on a resilient footing. Around 58,000 local customers account for over 60% of revenue. Digital out-of-home advertising is continuing its rapid ascent, with DOOH increasingly embedded in national advertisers' base digital budgets and seeing great demand on sustainability grounds due to it being the medium with the lowest emissions. This helped the product group to generate growth of over 60% in the first three quarters of 2022.

Around 30% of out-of-home revenue is already digital, although just 2% of potential locations have been digitalized to date. In this regard, Ströer is only at the beginning of its long-term digital transformation journey in out-of-home advertising, albeit a journey with great potential in which the Group continues to invest resolutely.

"Thanks to our diversified positioning, we have achieved healthy growth, bucking the market trends even in these challenging times. Our core business has performed very well compared with other media, such as print and TV, and we are gaining ground with the structural changes we have made," says Christian Schmalzl, Co-CEO of Ströer. "Even though the macroeconomic challenges cannot be altered, our OOH+ strategy is proving to be resilient and the order book for the fourth quarter is also on a par with the prior-year level. Our strong regional and local business, our ever-growing digital out-of-home advertising portfolio, and our strict cost discipline are the key to our success in the current environment."

OOH Media

The revenue of the OOH Media segment rose by a considerable 22% in the first nine months of 2022, from EUR 444m to EUR 541m. The segment notched up even higher growth in EBITDA (adjusted), which climbed by 26% from EUR 195m to EUR 246m over the same period. The EBITDA margin (adjusted) rose to 45.4% (9M 2021: 43.9%).

Digital & Dialog Media

In the first three quarters of 2022, the Digital & Dialog Media segment also generated encouraging revenue growth of over 4% to EUR 528m, compared with EUR 506m a year earlier. At EUR 114m, EBITDA (adjusted) was lower than the prior-year figure of EUR 126m. The EBITDA margin (adjusted) stood at 21.7% (9M 2021: 24.9%).

DaaS & E-Commerce

The revenue of the DaaS & E-Commerce segment jumped by 23%, from EUR 175m to EUR 216m, in the first nine months of 2022. EBITDA (adjusted) for the first three quarters stood at around EUR 17m (9M 2021: EUR 19m) and the EBITDA margin (adjusted) at 7.7% (9M 2021: 10.9%) on the back of strong growth and an increasingly international business profile.

Disclaimer

This press release contains "forward-looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and the future business activities of Ströer or the Ströer Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the results of operations, profitability, performance or achievements of Ströer or the Ströer Group to be materially different from any future results of operations, profitability, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release and are based on numerous assumptions that may also prove to be incorrect. Ströer makes no representation and assumes no liability with respect to the fair presentation, completeness, correctness, adequacy or accuracy of the information and assessments contained herein. The information contained in this press release is subject to change without notice. It may be incomplete or abbreviated and may not contain all material information relating to Ströer or the Ströer Group. Ströer does not undertake any obligation to publicly update or revise any forward-looking statements or other information contained herein, neither as a result of new information, future events nor otherwise.