Regulatory News:
JCDecaux SA (Paris:DEC), the number one outdoor
advertising company worldwide, published today its business review
for the first quarter of 2014.
FIRST QUARTER 2014: BUSINESS
HIGHLIGHTS
Key contract wins
In January, JCDecaux SA announced that he has won, following a
tender process, a 12-year contract to operate the indoor and
outdoor advertising spaces on- and in-vehicle spaces and in the
metro of STIB, the Brussels Intercommunal Transport Company.
In January, JCDecaux SA announced that it has been awarded a
7-year concession – with a three years extension option – to
provide advertising services at Houston’s George Bush
Intercontinental Airport.
- Middle-East – Sultanate of
Oman
In February, JCDecaux SA announced that its fully-owned branch,
JCDecaux Oman, has signed a 10-year exclusive contract to operate
outdoor advertising at Muscat International Airport and Salalah
Airport, following a tender process
Acquisitions
In March, JCDecaux SA announced that it has completed the
acquisition of 85% of Eumex, a group specialised in street
furniture for the Latin American continent.
With 36,000 advertising panels and a presence in 11 countries
and 6 of the 10 cities that generate the highest GDP per person
(São Paulo, Mexico, Buenos Aires, Santiago, Bogota and Monterrey),
JCDecaux becomes the number one outdoor advertising company in
Latin America.
In March, JCDecaux SA announced that it signed an agreement for
the acquisition of 100% of CEMUSA - a FCC Group subsidiary
dedicated to outdoor advertising - for an enterprise value of 80
million euros. The closing of the transaction is subject to
standard regulatory conditions and the final value of the
transaction will be adjusted for standard net debt and debt like
adjustments at closing.
Other business highlight
In April, JCDecaux SA announced the expansion of its Executive
Board and the appointment to its Executive Board of Emmanuel
Bastide, in his capacity of CEO for Asia, and Daniel Hofer, as CEO
for Germany, Austria, Central and Eastern Europe and Central Asia.
Both appointments will take effect on 1 September 2014.
FIRST QUARTER 2014 AND
OUTLOOK
Following the adoption of IFRS 11 from January 1st 2014, the
data presented below are adjusted to include our prorata share in
companies under joint control, and therefore are comparable with
historical data. Please refer to the paragraph “Adjusted data” on
page 3 of this document for the definition of adjusted data and
reconciliation with IFRS.
Adjusted revenues for the first quarter increased by 1.5% to
€574.1 million compared to €565.7 million in Q1 2013.Excluding the
negative impact from foreign exchange variations (especially
emerging market currencies) and the positive impact from changes in
perimeter, adjusted revenues grew by 2.3%.Adjusted advertising
revenues, excluding revenues related to sale, rental and
maintenance, increased by 1.6% on an organic basis in the first
quarter of 2014.
Q1 adjusted revenues 2014 (€m) 2013
(€m) Reported growth Organic
growth(a) Street Furniture 260.3 255.7
1.8% 2.5% Transport 216.7 206.9
4.7% 7.3% Billboard 97.1 103.1 -5.8%
-8.2%
Total 574.1 565.7
1.5% 2.3%
a. Excluding acquisitions/divestitures and the impact of foreign
exchange
Street Furniture
First quarter adjusted revenues increased by 1.8% to €260.3
million (+2.5% on an organic basis). Europe (including France and
the UK) was virtually flat. Asia-Pacific was slightly up, whilst
North America and the Rest of the World saw strong growth.First
quarter adjusted advertising revenues, excluding revenues related
to sale, rental and maintenance were up 2.4% on an organic basis
compared to the first quarter of 2013.
Transport
Transport adjusted revenues increased by 4.7% to €216.7 million
(+7.3% on an organic basis) during the first quarter. Europe
(including France and the UK) delivered good growth. North America
was down. Asia-Pacific showed good growth with China being notably
robust. The Rest of the World continued to be strong in most
markets.
Billboard
Adjusted revenues during the first quarter fell by 5.8% to €97.1
million (-8.2% on an organic basis). Europe (including France and
the UK) remained challenging. The Rest of the World was down
reflecting the unexpected situation in Moscow where most of the
5,000 illegal billboards, as well as the directional signs with
advertising, still need to be taken down by the City, 8 months
after the award of the new 10 year contracts for a reduced number
of legal billboards.
Commenting on the first quarter revenues, Jean-François
Decaux, Chairman of the Executive Board and Co-Chief Executive
Officer of JCDecaux, said:
“Our better than expected Q1 organic revenue growth of 2.3%
reflects the on-going recovery of our Street Furniture business in
Europe and the strengthening of our Transport division specially in
fast growing markets including China, partially offset by the
continued weakness of the Billboard business.
Bearing in mind the limited visibility and continued volatility
in most markets, we currently expect Q2 organic revenue growth to
be above Q1.
Looking forward, we remain convinced that out-of-home retains
its strength and attractiveness in an increasingly fragmented media
landscape. With our accelerating exposure to fast growing markets,
our growing digital portfolio, our ability to win profitable new
contracts and the high quality of our teams across the world, we
believe we are well positioned to outperform the advertising market
and increase our leadership position in the outdoor advertising
industry. The strength of our balance sheet is a key competitive
advantage that will allow us to pursue further external growth
opportunities as they arise.”
Adjusted data
Under IFRS 11, applicable from January 1st 2014, companies under
joint control are accounted for using the equity method.However in
order to reflect the business reality of the Group, operating data
of the companies under joint control will continue to be
proportionately integrated in the operating management reports used
to monitor the activity, allocate resources and measure
performance.Consequently, pursuant to IFRS 8, Segment Reporting
presented in the financial statements shall comply with the Group’s
internal information, and the Group’s external financial
communication will therefore rely on this operating financial
information. Financial information and comments will therefore be
based on "adjusted" data, consistent with historical data, which
will be reconciled with IFRS financial statements.In Q1 2014, the
impact of IFRS 11 on adjusted revenues was -€67.7 million (-€67.2
million in Q1 2013) leaving IFRS revenues at €506.4 million (€498.5
million in Q1 2013).
Forward looking statements
This news release may contain some forward-looking statements.
These statements are not undertakings as to the future performance
of the Company. Although the Company considers that such statements
are based on reasonable expectations and assumptions on the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual performance to
differ from those indicated or implied in such statements.These
risks and uncertainties include without limitation the risk factors
that are described in the annual report registered in France with
the French Autorité des Marchés Financiers.Investors and holders of
shares of the Company may obtain copy of such annual report by
contacting the Autorité des Marchés Financiers on its website
www.amf-france.org/ or directly on the Company website
www.jcdecaux.com.The Company does not have the obligation and
undertakes no obligation to update or revise any of the
forward-looking statements.
FINANCIAL SITUATION
No material event, other than the revenues evolution, has been
impacting the Group operating margin, free cash or net debt during
the first quarter of 2014.
The Group currently expects Q2 organic revenue growth to be
above Q1.
JCDecaux SA
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