JCDecaux SA (Euronext Paris: DEC) has announced its revenue for the three months ended March 31, 2016.
Adjusted revenue for the first quarter increased by 15.3% to €748.5 million compared to €649.0 million in Q1 2015.
Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenue grew by 10.5%.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance, increased by 10.9% on an organic basis in the first quarter of 2016.
Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said “JCDecaux was firing on all cylinders both in terms of segments as well as geographies with a growing contribution from our prime digital asset portfolio which now represents 11.5% of revenue. Our Street Furniture business strong performance was mainly driven by France and the UK which benefits from the London bus-shelter contract”.
| Q1 2016 adjusted revenue | 2016 (€m) | 2015 (€m) | Reported growth | Organic growth(a) |
| Street Furniture | 333.4 | 291.3 | +14.5% | +9.7% |
| Transport | 312.0 | 268.9 | +16.0% | +12.9% |
| Billboard | 103.1 | 88.8 | +16.1% | +5.9% |
| Total | 748.5 | 649.0 | +15.3% | +10.5% |
(a) Excluding acquisitions/divestitures and the impact of foreign exchange.
- STREET FURNITURE. First quarter adjusted revenue increased by 14.5% to €333.4 million (+9.7% on an organic basis). Europe (including France and the UK), Asia-Pacific and the Rest of the World delivered strong growth. North America showed good growth. First quarter adjusted advertising revenue, excluding revenue related to sale, rental and maintenance was up 11.6% on an organic basis compared to the first quarter of 2015. It was stated that the rollout of the world’s largest digital Street Furniture network [1] with 1,000 84ʺ screens in London is taking longer than expected mainly due to the complexity surrounding the installation of this major construction project with the involvement of several contractual partners in the operational model from TfL. Q2 2016 started with only 20 screens instead of 300 (they now expect to have 200 screens at the end of Q2 2016 instead of 500)
- BILLBOARD. First quarter adjusted revenue increased by 16.1% to €103.1 million (+5.9% on an organic basis). Europe (including France and the UK) was up. The Rest of the World showed solid growth. They stated that their Billboard business was slightly improving with a positive performance in Europe thanks to the on-going digitization in the UK but the lack of consolidation in Europe remains the main problem, while in Russia the market consolidation continues following the default in Moscow rent payments from some local operators paving the way for increased revenue. Their Chicago digital billboard network [2] is now well under way with 43 screens out of 60 in operation, achieving the best billboard yields in the third largest DMA while the city has already displayed over 24 million messages to commuters travelling by car along the Chicago expressways – we understand that other large US cities have expressed an interest in this program and the State of California will soon make a decision on a proposal to issue an RFP for a pilot program for the upgrade of a portion of the freeway changeable message signs into state of the art digital displays with Amber alerts, road condition reports and advertising, Ed
- TRANSPORT. First quarter adjusted revenue increased by 16.0% to €312.0 million (+12.9% on an organic basis). Europe (including France and the UK) delivered good growth. Asia-Pacific and the Rest of the World were up double-digit. North America was slightly negative.
Jean-François Decaux added “The integration of the recent acquisitions is progressing well. As far as CEMUSA is concerned, the integration of the United States, Brazil and Italy is already completed and we expect to finalize the Spanish one in June. We started in Q1 2016 the optimization of the New York City Street Furniture network with the installation of advertising bus-shelters on 5th avenue between 58th street and 34th street which is the most expensive retail street in the world and the digitization of more advertising panels will happen in Q3 / Q4 2016.”
“With the closing of OUTFRONT Media in Latin America [3], we strengthened our leading position in this region where we are present in the 10 wealthiest cities of the continent. In Africa, Continental Outdoor Media is now fully integrated in the 14 countries”.
JCDecaux is currently expecting an organic revenue growth of around 3% for Q2 2016.