JCDecaux warns Olympic bounce will be offset by European declines

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JCDecaux: global earnings down 2.3% year on year
JCDecaux: global earnings down 2.3% year on year

JCDecaux has reported 3.2% organic growth in first half UK revenues to €141m (£110.2m), but has warned Olympic revenues in the UK will be offset by declines in the rest of Europe during Q3.

According to JCDecaux's H1 2012 results, the outdoor media owner's global earnings before interest and taxes were €133.3m (£104.2m) in the six months to the end of June 2012, down 2.3% year on year.

In the UK revenues were €141.0m in the first six months of 2012, up 9.9% year on year on a reported basis. Excluding acquisitions, divestitures and the impact of foreign exchange year-on-year growth in the UK was 3.2%.

JCDecaux said there was "single digit growth" in its UK street furniture division, which includes six-sheets on bus shelters, and "high single digit growth" at its UK transport division, which includes poster sites at rail stations.

At a global level its transport division posted the highest organic increase, up 7.3% year on year to €452.2m, while street furniture was down 0.1% to €572.2m and billboard revenues declined 4.7% to €215.8m.

Each of the three divisions performed less well in the second quarter. Overall organic revenue growth was 3.3% year on year in the first quarter but slowed to 0.2% in the three months to the end of June 2012.

Global revenues were €1.24bn in the six months to 30 June 2012, up 6.0% year on year. Organic growth was lower at 1.6% which JCDecaux attributed to foreign exchange variations, while core ad revenues grew 1.3% organically.

Jean-Charles Decaux, chairman and co-chief executive, said: "After a solid Q1, Q2 organic growth was slightly lower than expected with most European markets in decline while Asia-Pacific and the Rest of the World [excluding Europe, France, Asia-Pacific, the UK and North America] continued to post double-digit growth.

"Despite the positive impact of the Olympic Games in the UK and a slight improvement expected in France, we anticipate Q3 organic revenue growth to be broadly in line with Q2, reflecting a revenue decline affecting Germany and some Northern/Eastern European countries."


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