JCDecaux's revenue rises 6.6% boosted by UK transport division

JCDecaux's global revenues grew 6.6% year on year in Q1 2012, while in the UK its transport division reported double-digit revenue growth, street furniture revenue was "broadly flat" and billboards reported a "modest decline".

JCDecaux: transport division reports double digit revenue growth
JCDecaux: transport division reports double digit revenue growth

According to a quarterly trading update, JCDecaux reported total revenues of €569m (£457.07m), up 6.3% on a reported basis.

Excluding the effect of acquisitions, divestitures and foreign exchange, organic revenues grew 3.3%.

JCDecaux’s street furniture division, which includes six-sheets on bus shelters, reported revenues of €265.5m, up 1.5% year on year on a reported basis and representing organic growth of 0.5%.

In its trading update JCDecaux said the limited growth in its street furniture division reflected the strong performance in the US and resilience in key markets such as France and Germany (single digit growth) and the UK, which was "broadly flat", being offset by lower performances in most other European markets.

Transport revenues, including poster sites in rail stations and airports, were €203.5m, up 12.2% year on year on a reported basis and 10.2% excluding the effect of acquisitions, divestitures and foreign exchange organic revenues.

JCDecaux said transport revenues were boosted by fast-growing economies, including Greater China and Singapore, and the rollout of digital. France and the UK reported double digit revenue growth and the rest of Europe was mid-single digit.

The billboard division of JCDecaux reported revenues €100m, up 8.3% year on year but down 2.2% year on year excluding the effect of acquisitions, divestitures and foreign exchange organic revenues.

JCDecaux said the difference between reported and organic growth in the billboard division follows a reorganisation of the French business. The UK and France reported a "modest decline" in revenues, while revenues declined by double digits in southern Europe.

Jean-François Decaux, chairman and co-chief executive officer, said JCDecaux currently anticipates organic revenue growth of around 1% in the second quarter and Q3 should be positively impacted by the Olympics in the UK.

Decaux said: "Looking forward, we remain confident in our ability to generate sound revenue growth from our well diversified geographic mix and the high quality of our well invested advertising portfolio across the world.

"Our strong exposure to fast-growing markets and growing digital portfolio, along with the strength of our teams across the world, leaves JCDecaux well placed to outperform the media market.

"Furthermore, we believe the strength of our balance sheet will continue to be a key competitive advantage over the medium term."

JCDecaux’s results compare favourably with its competitors. Last week Clear Channel reported global outdoor revenues of $651.3m in Q1 2012, up just 0.2% year on year, while CBS Outdoor reported revenues of $416m, up 1%.

The decline in JCDecaux's reported billboard revenues was mirrored at Clear Channel Outdoor, which said decreases in billboard revenues in the UK and Italy partially offset growth in street furniture revenues from countries such as China, France and Australia.

Earlier this week figures from the Outdoor Media Centre showed the UK’s outdoor sector grew by 3.1% to £213m in the first three months of 2012, driven by digital, retail and transport revenues.

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