Shares in the world’s biggest outdoor advertising company fell by 7.5% this morning after it cited uncertainty around the Brexit vote leading JCDecaux to review the number of screens it is deploying in the UK capital.
JCDecaux cited concerns over Brexit in its third quarter results today, reporting a 3.4% in organic revenue growth – far less than the 10.5% it reported in Q1.
However, the UK remains JCDecaux’s highest organic growth region for the first half of 2016 at 18.5% – far above total organic revenue of 6.6% for H1.
JCDecaux won the Transport for London bus shelter contract last year and is tasked with installing 1,000 84-inch dynamic HC screens – claimed to be the world’s biggest rollout of digital street furniture.
It had already warned in May that at the beginning of April only 20 screens had been installed, instead of the planned amount of 300.
Clear Channel had previous held the TfL bus shelter account since 2005.
Regarding the London digital rollout, JCDecaux said in a statement: "Given the uncertainty surrounding the impact of the Brexit decision on the UK economy and advertising revenue, we are reviewing the number of screens we are deploying until we can evaluate the economic conditions and have improved visibility.
"We are confident that the increase in the key central locations like Oxford Street (Europe’s busiest shopping street) where we already operate 44 screens and other important retail zones such as Kensington and Chelsea will partly compensate."