Paris, 30th January 2007 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company in Europe and Asia-Pacific and the number two worldwide, announced today 2006 revenues of €1,946.4 million, an increase of 11.5% compared with 2005. Excluding acquisitions and the impact of foreign exchange, organic revenue growth was 7.7%, reflecting stronger than expected growth in the fourth quarter and well ahead of growth in the global advertising market.
In the fourth quarter, consolidated revenues grew by 9.0% to €564.3 million (+7.6% on an organic basis) compared to the same period last year. This growth in revenues reflects good progress in Transport, which continued to show double-digit organic growth, and solid performances from Street Furniture and Billboard.
Geographically, France and the Rest of Europe produced solid organic revenue growth over the year. In the United Kingdom, better than expected growth was achieved, following a strong performance in Billboard and Street Furniture in the fourth quarter. In its newer territories of North America and Asia-Pacific, the Group reported particularly strong revenue progressions. The highest organic revenue increase was achieved in South America, reported under Rest of the World.
In terms of activity, the Transport division (26% of total revenues) clearly established itself as the Group’s second largest contributor to revenue - the first time in any full year - reflecting successful organic growth and acquisitive expansion, particularly in the Far East.
By activity:
|
Full year revenues
|
2006
(€m)
|
2005
(€m)
|
Reported growth (%)
|
Organic growth(1) (%)
|
|
Street Furniture
|
984.1
|
925.3
|
|
5.6%
|
|
Transport
|
507.7
|
391.6
|
29.6
|
14.%
|
|
Billboard
|
454.6
|
428.3
|
6.1
|
6.2%
|
|
Total Group
|
1,945.4
|
1,745.2
|
11.5
|
7.%
|
|
Q4 Revenues
|
2006
(m€)
|
2005
(m€)
|
Reported growth
|
Organic growth(1) (%)
|
|
Street Furniture
|
289.8
|
268.8
|
7.8%
|
7.0%
|
|
Transport
|
150.8
|
130.9
|
15.2%
|
11.5%
|
|
Billboard
|
123.7
|
117.9
|
4.9%
|
4.5%
|
|
Total Group
|
564.3
|
517.6
|
9.0%
|
7.6%
|
By geographic area:
|
Full Year Revenues
|
2006
(m€)
|
2005
(m€)
|
Reported growth
|
Organic growth (1) (%)
|
|
France
|
580.4
|
555.0
|
4.6%
|
4.6%
|
|
United Kingdom
|
265.3
|
258.5
|
2.6%
|
3.3%
|
|
Rest of Europe
|
692.7
|
637.4
|
8.7%
|
6.9%
|
|
Asie-Pacific
|
251.9
|
172.7
|
45.9%
|
12.9%
|
|
North America
|
140.7
|
110.9
|
26.9%
|
27.9%
|
|
Rest of the world
|
15.4
|
10.7
|
43.9%
|
36.0%
|
|
Total Group
|
1,946.4
|
1,745.2
|
11.5%
|
7.7%
|
(1) excluding acquisitions/divestitures and the impact of foreign exchange Street
Furniture revenues for the full year grew by 6.4% to €984.1 million. Excluding acquisitions and the impact of foreign exchange, organic revenue growth was 5.6%. Core advertising revenues, excluding revenues related to the sale, rental and maintenance of Street Furniture contracts, increased by 6.2% organically.
In the fourth quarter, revenues increased by 7.8% to €289.8 million (+7.0% on an organic basis) compared to the same period last year. Core advertising revenues, excluding revenues related to the sale, rental and maintenance of street furniture contracts, rose by 9.3% organically. In Europe, double-digit revenue increases were reported in Spain, Portugal, Italy and Sweden. France and Germany reported solid advertising revenue growth over the quarter and the Street Furniture market rebounded in the United Kingdom, where advertising revenues increased strongly. Asia-Pacific, North America and the Rest of the World continued to produce double-digit organic revenue growth.
Transport revenues for the full year increased by 29.6% to €507.7 million. Excluding acquisitions and the impact of foreign exchange, organic revenues grew by 14.3%.
In the fourth quarter, revenues increased by 15.2% to €150.8 million (+ 11.5% on an organic basis). Double-digit organic revenue growth was reached again in a number of key markets including Germany, Spain, Scandinavia, Hong Kong and the United States, where revenues continued to be boosted by the renewed and extended contract with the New York Airports. Strong revenue growth was also reported in France over the period.
Billboard revenues for the full year increased by 6.1% to €454.6 million. Excluding acquisitions and the impact of foreign exchange, organic revenues grew by 6.2%.
In the fourth quarter, revenues increased by 4.9% to €123.7 million (+ 4.5% on an organic basis). Market conditions remained favorable in the United Kingdom, where revenues continued to grow by double digits. Strong growth was also reported in Ireland over the period while modest advertising revenue increase was achieved in France, Austria and Spain.
Commenting on the Group’s 2006 revenue performance, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO, said:
“We experienced a stronger than expected fourth quarter, producing organic revenue growth of 7.7% for the year as a whole, the highest yearly organic growth rate achieved since our IPO in 2001. The growth in revenue reflects solid performances across all three of our divisions and is well ahead of the expected growth in the global advertising market in 2006.
Our organic revenue growth was supported by the overall improvement in the French advertising market compared to 2005, the double-digit revenue increase from lower-margin Transport advertising, as well as the good progress of our North American and Asia-Pacific operations.
We expect the operational progress achieved in 2006 – that was gained in both emerging and established markets - to pave the way for future revenue growth, which should enable us to continue to outperform the worldwide advertising market in 2007.”
Next information:
2006 Annual Results: 14 March 2007 (before market)
Key Figures for the Group:
- 2006 revenues: €1,946.4 million
- JCDecaux is listed on the Eurolist of the Euronext Paris stock exchange, and is part of the
Euronext 100 and FTSE4Good indices
- N°1 worldwide in street furniture (318,000 advertising panels)
- N°1 worldwide in airport advertising with 153 airports and more than 300 transport contracts in metros, buses, tramways and trains (207,000 advertising panels)
- N°1 in Europe for billboards (200,000 advertising panels)
- N°1 in outdoor advertising in China (79,000 advertising panels in 20 different cities)
- 725,000 advertising panels in 48 countries
- Present in 3,400 cities with over 10,000 inhabitants
- 7,900 employees
