JCDecaux UK revenues drop in Q3

by Maisie McCabe, mediaweek.co.uk 04-Nov-09, 10:38

LONDON - JCDecaux's UK revenue fell sharply in the third quarter, despite what the company claimed was an upturn in September.

The company said organic revenues earned by its UK street furniture, billboard and transport operations were all down by double digits year on year. It did not, however, break out actual UK revenue. Organic revenue refers to income earned from ongoing operations, excluding the impact of acquisitions, for example.

Globally, JCDecaux posted a 12.1% revenue fall between July and September to €431.8m, down from €495.6m last year. Revenues for the nine months to the end of September was €1.357bn, down 13.2% year on year.

Its billboard operations suffered the biggest decline in global revenue, down 18%, to €90.5m. JCDecaux said, however, business conditions in the UK billboard market "gradually improved during the quarter leading to an overall low double-digit organic revenue decline in September mitigating the weak performance in July".

Transport revenues decreased 9.5% year on year in Q3 to €138.6m worldwide. JCDecaux said conditions in the UK were "very challenging".

Global street furniture revenues fell by 12.7% year on year, to €202.7m in Q3.

Jean-François Decaux, chairman of the executive board and co-chief executive, said the company believes the ad market "bottomed out in the summer" and while some further improvement is anticipated in Q4 there is not yet visible "sustained signs of an advertising recovery" and "business continues to be volatile".