JCDecaux reports revenues up 5.3% in Q3

JCDecaux, the outdoor media owner, has reported global revenues of €577m (£495m) in the third quarter of 2011, up 5.3% year on year, despite a slight decrease in street furniture revenues and flat billboard revenues in the UK.

JCDecaux reports increasing revenues
JCDecaux reports increasing revenues
Excluding acquisitions/divestitures and the impact of foreign exchange organic revenue growth was 8.4%, according to JCDecaux’s quarterly trading update for the three months ended 30 September 2011.

JCDecaux said organic revenue growth was stronger than originally expected and Asia-Pacific, France and the 'Rest of the World' - territories excluding Europe, France, Asia-Pacific, United Kingdom and North America - made the most significant positive contribution.

Revenues in the street furniture division were €260.4m, up 3.8% year on year and an increase of 4.5% on an organic basis. JCDecaux said core organic ad revenues, excluding revenues related to the sale, rental and maintenance of street furniture products, increased by 4.1% over the period.

Although the UK's street furniture division posted a "slight decrease" and "softer conditions" continued in Southern Europe, JCDecaux said France and Germany delivered double-digit growth in ad revenue during the quarter along with markets such as Turkey, India and Kazakhstan.

In the transport division revenues were €221.3m in Q3, up 11.9% year on year and reflecting a "very strong" organic revenue increase of 18.9%, which was partially offset by negative foreign exchange variations and change in perimeter effects.

During the third quarter, the strong organic revenue growth in the Transport division was mainly driven by the double-digit performance of Asia-Pacific, together with the Rest of the World and North America.

Global billboard revenues were €95.4m in the three months to 30 September 2011, down 4.1% year on year, 2.8% on an organic basis. The decline was attributed to decreases in revenues in most European countries apart from the UK, which was "broadly flat", and France, which reported a slight increase.

JCDecaux said the difference between reported and organic revenues for the third quarter is principally attributable to exchange variations of currencies (including US dollar, sterling, Hong Kong dollar and Chinese yuan) in which the Group operates against the Euro.

Jean-François Decaux, chairman and co-chief executive, JCDecaux, said: "Our strong Q3 organic revenue growth demonstrates once again our capacity to outperform the media market.

"This performance was driven by the ongoing strength of our transport division with its unique exposure to Asia-Pacific combined with sound growth in our core street furniture markets such as France and Germany.

Despite Decaux saying that he remains cautious given the current market uncertainties, he said he expects JCDecaux to report organic revenue growth of around 5% for the whole of 2011.

Decaux said: "Looking forward, with our increasing exposure to fast-growing markets, our growing digital portfolio, our ability to win new contracts and the high quality of our teams across the world, we remain confident that we will continue to outperform the media market.

"We also believe that the strength of our balance sheet will, more than ever, be a key competitive advantage over the medium term."

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