JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its results for the year ended 31st December, 2016. The accounts are audited and certified.
Commenting on Australia’s performance, JCDecaux Australia CEO Steve O’Connor said: “JCDecaux Australia had a strong 2016 and was in line with the reported Australian OOH revenue figures released by the OMA. At a local level we are intent on continuing with our ambitious but considered digital transition ensuring we maintain our promise to our clients that we will only digitize locations that are worthy and therefore provide real value to brands.”
Commenting on the 2016 results, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said: “2016 was for JCDecaux another year of record revenue at €3,392.8 million despite the significant slowdown in Greater China. While our free cash flow generation remains solid, our overall profitability declined due to both the integration of CEMUSA and the contract structure of the world’s largest bus shelter advertising franchise with TfL in London.
“These two strategic decisions are paving the way to accelerate the growth of our premium digital portfolio which now represents 12.9 per cent of our total revenue. New York City and London are now a digital showcase for JCDecaux and this will help us to gain market share in the largest and fourth largest advertising markets worldwide.
“2016 was also a turning point in our organic growth strategy for Japan, the world’s third largest advertising market, with the award of several Street Furniture contracts in Tokyo, where we will enjoy long-term exclusive rights for almost all the bus shelters to sell premium advertising in a city with more than 13 million people which will host the Olympic and Paralympic Games in 2020. This creates a truly national Street Furniture network in all 41 biggest Japanese cities.
“2016 was finally a year of further consolidation in the fragmented OOH market in Latin America with the bolt-on acquisitions of OUTFRONT Media and Top media which creates the largest OOH platform where we are covering all Top 10 wealthiest cities in the region. In addition, JCDecaux entered into a strategic alliance in June 2016 with Caracol Televisión in Colombia, reflecting our successful business development strategy which is also based on joint-ventures with local partners.
“Given our solid free cash flow and an enhanced strong financial flexibility, we recommend the payment of a dividend of €0.56 per share, in line with 2015, at the Annual General Meeting which will take place on May 11th, 2017.
“As far as Q1 2017 is concerned, given the strong comparable in Q1 2016 and an uncertain global economic as well as political outlook, we expect our adjusted organic revenue growth to be slightly negative.
“In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well-diversified exposure to faster-growth markets, an increasing presence in the most influential cities in the world1, our growing premium digital portfolio combined with a new data-led audience targeting platform, 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 is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.
“Given our solid free cash flow and an enhanced strong financial flexibility, we recommend the payment of a dividend of €0.56 per share, in line with 2015, at the Annual General Meeting which will take place on May 11th, 2017.
“As far as Q1 2017 is concerned, given the strong comparable in Q1 2016 and an uncertain global economic as well as political outlook, we expect our adjusted organic revenue growth to be slightly negative.
“In a media landscape increasingly fragmented, out-of-home advertising reinforces its attractiveness. With our well-diversified exposure to faster-growth markets, an increasing presence in the most influential cities in the world1, our growing premium digital portfolio combined with a new data-led audience targeting platform, 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 is a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.”
