JCDecaux in NBC partnership as it posts record results

LONDON - JCDecaux is to form a joint venture company with media and entertainment company NBC Universal to bid for the world's largest street furniture contracts as the outdoor ad giant reports record results.

The two are joining forces to create NBCDecaux, which will bid for a 20-year street furniture contract to design, install and maintain advertising-supported bus shelters, newsstands and public toilets throughout New York City.

JCDecaux, a unit of French-based JCDecaux Group, will own 70% of the company and NBC Universal would own the remaining 30%. The partnership has submitted the proposal to the New York City Department of Transportation.

Bob Wright, chairman and CEO NBC Universal, said: "NBC is to in-home advertising what JCDecaux is to out-of-home advertising -- we both create first-class environments that enhance the messages our advertisers want to deliver."

NBC Universal is owned by General Electric. In May of this year, NBC completed its merger with Vivendi-owned Universal, which was worth $3.4bn.

JCDecaux, the largest outdoor advertising company in Europe, posted record results for the year to June 30 2004. Revenues were up by 4.5% to €792.3m (£541.4m) and organic revenue was up 4.8%, boosted by good performance in street furniture and a strong recovery in transport.

Jean-Charles Decaux, chairman and co-chief executive officer, said that results reflected the strong recovery of the European advertising market in general.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum here.