JCDecaux reports organic revenue growth of 7.8% in Q1
JCDecaux, the outdoor media owner, has reported organic revenue growth in the transport and street furniture divisions of its UK businesses, with transport leading the way with "strong double-digit" growth.
JCDecaux: organic revenue growth in the transport and street furniture divisions
According to JCDecaux’s results for quarter one, the group’s revenues increased by 9.9% to €535.3m (£468.4m). Organic growth – excluding acquisitions and the impact of variations in foreign exchange – was 7.8%.
The group said core advertising revenues, excluding revenues related to the sale, rental and maintenance of street furniture products, rose by 7.7% organically.
The street furniture division reported mid-single-digit organic revenue growth, while the UK billboard revenues reported mid-single-digit organic revenue decreases.
Global revenues for the transport division rose by 21.9% to €181.3m. Excluding the impact of acquisitions and foreign exchange variations, organic revenue growth was 18.8%.
JCDecaux said the global growth in the transport division reflected the division’s exposure to fast growing economies and digital assets, as well as the contribution of recently won contracts.
Global revenues in the street furniture division increased 6.7% to €261.7m, from €245.3m in the first quarter of 2010.
In the billboard division revenues fell by 1% to €92.3m from €93.2m in the first three months of 2010, and fell 2.1% on an organic basis.
Jean-Charles Decaux, chairman of the executive board and co-chief executive officer, said: "While our good exposure to fast-growing economies remained a key growth driver for the group in Q1 2011, most of our developed markets also reported solid performances for the quarter.
"Despite some local weaknesses, the trends for the advertising market remain positive for the year, and given a demanding double-digit comparable in Q2 2010, we currently anticipate an organic revenue growth of around 4% for the Group in Q2 2011."
Last week, figures from the Outdoor Media Centre showed the outdoor advertising market in the UK grew by 1.1% in the first quarter of this year.
First-quarter results from JCDecaux’s competitor, Clear Channel, showed a revenue rise of 7% year on year, both globally and in the international division, which includes the UK.
This article was first published on mediaweek.co.uk
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