JCDecaux reports strong growth boosted by transport

by Daniel Farey-Jones, Brand Republic 13-Sep-06, 11:00

LONDON - Outdoor advertising company JCDecaux has increased first-half post-tax profits by 29.3% to €105.5m (£71.4m).

Revenue growth of 13.4% to €945.8m was driven by the transport advertising division, with street furniture and billboards also doing well.

In transport, JCDecaux's profit margin surged from 4.8% in the first half of 2005 to 9.6% in the first half of 2006, partly thanks to the performance of the Chinese companies Media Nation and Media Partners International it acquired last year.

In billboards, where conditions were particularly challenging in the UK last year, revenue growth, cost control and inventory management helped the company grow the worldwide profit margin from 13.9% to 15.8%.

The street furniture division increased its profit margin from 42.1% to 42.7%, with a strong increase in the UK.

The company continues to expect organic revenue growth for 2006 to exceed 6%.

Jean-Charles Decaux, chairman and co-CEO, said: "Good organic revenue growth coupled with the contribution from acquisitions made in 2005 translated into a double-digit rise in earnings."

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.