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JCDecaux 2014 revenues up 5.1% to €2,813.3 mn; ad revenues up 3.5%

29, January, 2015

allaboutoutdoor.com Bureau, New Delhi

JCDecaux SA has announced its revenues for the full-year 2014. Adjusted advertising revenues, excluding revenues related to sale, rental and maintenance, increased by 3.5 per cent on an organic basis in 2014. 2014 adjusted revenues increased by 5.1 per cent to €2,813.3 million, as compared to €2,676.2 million in 2013. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenues grew by 3.8 per cent.

Following the adoption of IFRS 11 from January 1, 2014, the data has been adjusted to include prorata share in companies under joint control.

Street Furniture

Full-year adjusted revenues increased by 7.0 per cent to €1,275.7 million (+4.3 per cent on an organic basis). Europe (including France and the UK) and Asia-Pacific saw positive growth. The Rest of the World delivered strong growth across most markets. North America was down.

In the fourth quarter, adjusted revenues increased by 8.8 per cent to €389.3 million (+4.7 per cent on an organic basis). Europe (including France and the UK) was up. Asia-Pacific delivered robust organic revenue growth. The Rest of the World saw strong growth across most markets. North America was down.

Fourth quarter adjusted advertising revenues, excluding revenues related to sale, rental and maintenance were up 3.7 per cent on an organic basis compared to the fourth quarter of 2013.

Transport

Full-year adjusted revenues increased by 6.4 per cent to €1,078.8 million (+6.2 per cent on an organic basis). Asia-Pacific continued to deliver good growth with China being robust. Europe (including France and the UK) was up. North America was down. The Rest of the World was strong.

During the fourth quarter, adjusted revenues increased by 9.9 per cent to €324.0 million (+4.1 per cent on an organic basis). Asia-Pacific and Europe (including France and the UK) were up. North America returned to solid growth. The Rest of the World was up.

Billboard

Full-year adjusted revenues fell by 2.4 per cent to €458.8 million (-2.6 per cent on an organic basis). Europe (including France and the UK) was slightly down. The Rest of the World saw revenue declines, largely due to the very difficult market conditions in Russia and Ukraine. The company’s Russian revenues were also impacted by the delayed removal of 5,000 illegal billboards in Moscow, which is now completed.

In the fourth quarter, adjusted revenues decreased by 2.0 per cent to €125.9 million (-0.7 per cent on an organic basis). Europe (including France and the UK) saw very slight growth, which was more than offset by weak revenues from the Rest of the World.

Commenting on the Group’s 2014 revenue performance, Jean-Charles Decaux, Chairman of the Executive Board and Co-Chief Executive Officer of JCDecaux, says, “JCDecaux achieved another year of record revenues at €2,813 million, with an organic growth rate of +3.8 per cent. We ended 2014 better than expected, with organic growth of +3.6 per cent in Q4 despite high comparables.”

He further says, “With 45 per cent of our 2014 group revenues, Street Furniture remains our largest division with solid organic revenue growth of +4.3 per cent. Our Transport business is still our fastest growing segment with +6.2 per cent organic growth and is now nearly 40 per cent of our total sales. On the other hand, Billboard is still challenging with an organic revenue decline of 2.6 per cent, reflecting the lack of consolidation in most European markets.”

“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 premium digital portfolio, our ability to win 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 through profitable market share gains. The strength of our balance sheet remains a key competitive advantage that will allow us to pursue further external growth opportunities as they arise,” he adds.

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