JCDecaux on course with solid first-half performance

by Daniel Farey-Jones, Brand Republic 14-Sep-05, 11:00

PARIS – Outdoor advertising company JCDecaux has said first-half profits rose by 20.2% to €83.3m (£56.1m) on revenues up 5.5% to €833.7m, beating analysts' forecasts.

During the period the company acquired outdoor specialists MediaNation in China and Texon in Hong Kong, markets that are growing faster than its European heartland. France in particular saw softening ad revenues from the first to the second quarter.

First half organic revenue growth was up to 5.1% but over the course of the year Jean-Francois Decaux, chairman of the executive board and co-CEO, expects it to be lower.

"For 2005, we still expect to achieve organic revenue growth of around 4%, with a slower profit growth rate at operating margin and EBIT levels, reflecting the slight first-half revenue decrease in France and the higher revenue proportion from the lower-margin transport division," he said.

Street furniture made the biggest contribution to earnings before interest, tax, depreciation and amortisation, up 2.7% to €191.3m. Billboards was up by 15.1% to €29.8m and transport was up 17.6% to €8m.

The company's net debt increased from €493.2m to €508.1m.

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