JCDecaux's UK revenue rises 2.6% in first half
JCDecaux's UK arm generated revenue of €128.3m (£112.5m) in the first six months of 2011, up 2.6% year on year, while worldwide earning before interest and taxes rose 20% year on year.
JCDecaux: first-half revenue was up 2.6% in the UK
Worldwide revenues for the six months ended 30 June were €1.2bn (£1.03bn), up 5.3% year on year. Excluding acquisitions and the impact of foreign exchange, organic revenue growth was 5.8%.
According to JCDecaux’s half yearly results for 2010, its earnings before interest and taxes (EBIT) were €136.5m, an increase of 20.1% from €113.7m in the first half of 2010.
EBIT is defined as JCDecaux’s operating margin less depreciation, amortization and provisions (net) less impairment of goodwil, less maintenance spare parts and less other operating income and expense.
Jean-François Decaux, chairman of the board and co-chief executive, said: "Our H1 2011 results reflect JCDecaux's ability to generate sound revenue growth and meaningfully increase its profits, despite the uncertain macro-economic environment.
"In Europe, the strong performance in certain markets such as Germany, was partially offset by continued weaknesses in Southern Europe and some slowdown in the United Kingdom and France."
Street furniture revenues for the first half of 2011 increased by 2.9%, or 2.4% organically, to €566.1m. JCDecaux said that excluding the foreign exchange variations, revenues in the UK remained virtually flat compared to H1 2010.
In the transport division, global revenues were €402m in the first six months of 2011, up 14.6%, or 16.9% on an organic basis, from the same period in 2010.
JCDecaux said the transport revenue growth was driven by double-digit organic revenue growth in the UK, Asia Pacific and the rest of the world (outside Europe and the USA).
Global billboard revenues declined by 3.7%, or 3.6% on an organic basis, to €201.9m in the six months to 30 June 2011. Advertising demand for billboards was particularly soft in the UK and Southern Europe.
The company said: "Although some concern remains regarding the short-term economic outlook, we are confident in our ability to deliver solid revenue growth. We currently anticipate that organic revenue growth for Q3 will be in a similar range to Q2.
"We continue to believe that outdoor advertising remains structurally well placed for the future, and that JCDecaux is increasingly well positioned in this industry. We expect to continue to gain share from both other media and within our own sector."
This article was first published on mediaweek.co.uk
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