JCDecaux: Q1 2021 trading update
Q1 2021
trading update
- First
quarter 2021 adjusted
revenue down
-37.2% to
€454.3m
- First
quarter 2021 adjusted organic revenue down
-34.6%
- Second
quarter 2021 adjusted organic revenue growth
above +60%
Paris, May
18th,
2021 – JCDecaux SA
(Euronext Paris: DEC), the number one outdoor advertising company
worldwide, announced today its revenue for the three months ended
March 31st, 2021.
Following the adoption of IFRS 11 from January
1st, 2014, the operating data presented below is adjusted to
include our prorata share in companies under joint control. Please
refer to the paragraph “Adjusted data” on page 3 of this release
for the definition of adjusted data and reconciliation with
IFRS.The values shown in the tables are generally expressed in
millions of euros. The sum of the rounded amounts or variations
calculations may differ, albeit to an insignificant extent, from
the reported values.
Adjusted revenue for the first quarter 2021
decreased by -37.2% to €454.3 million compared to
€723.6 million in the first quarter of 2020.Excluding the
negative impact from foreign exchange variations and the negative
impact from changes in perimeter, adjusted revenue decreased by
-34.6%.Adjusted advertising revenue, excluding revenue related to
sale, rental and maintenance of street furniture and advertising
displays, decreased by -37.2% on an organic basis in the first
quarter of 2021.
Q1 adjusted revenue |
2021 (€m) |
2020 (€m) |
Reported growth |
Organic growth(a) |
Street Furniture |
223.8 |
325.5 |
-31.3% |
-30.8% |
Transport |
151.6 |
281.7 |
-46.2% |
-42.7% |
Billboard |
78.9 |
116.3 |
-32.1% |
-25.7% |
Total |
454.3 |
723.6 |
-37.2% |
-34.6% |
a. Excluding acquisitions/divestitures and the impact of foreign
exchange
Please note that the geographic comments below
refer to organic revenue growth.
STREET FURNITURE
First quarter adjusted revenue decreased by
-31.3% to €223.8 million (-30.8% on an organic basis). Europe
(including France and UK), Asia-Pacific, the Rest of the World and
North America were down double digit, still affected by mobility
restrictions. UK and North America were the most affected regions.
Most of the regions suffered from tougher stay-at-home requirements
compared to Q1 2020 and Q4 2020, mainly in UK and the Rest of
Europe.First quarter adjusted advertising revenue, excluding
revenue related to sale, rental and maintenance of street furniture
was down -34.2% on an organic basis compared to the first quarter
of 2020.
TRANSPORT
First quarter adjusted revenue decreased by
-46.2% to €151.6 million (-42.7% on an organic basis),
reflecting a significant decline in both airport passenger traffic
and, to a lesser extent, public transport commuting due to the
Covid-19 outbreak. Europe (including France and UK) posted
double-digit decline, compared to Q1 2020 which was not fully
affected by the Covid-19 pandemic at that time. Asia-Pacific was
down but saw a significant double-digit increase in Mainland China
driven by domestic audiences which were almost back to pre-Covid
level. North America was down affected as well by the non-renewal
of the New York airports contract. The Rest of the World was down,
still impacted by global travel restrictions.
BILLBOARD
First quarter adjusted revenue decreased by
-32.1% to €78.9 million (-25.7% on an organic basis). Europe
(including France and UK), the Rest of the World, North America
were down double digit while Asia-Pacific showed sequential
improvement with a revenue decline around mid-single digit.
Commenting on the 2021 first quarter revenue,
Jean-Charles Decaux,
Chairman of the Executive Board and Co-CEO of JCDecaux,
said:
“Our Q1 2021 organic revenue decline at
-34.6% was better than expected thanks to a double-digit growth in
Mainland China but remained still highly affected by the Covid-19
pandemic. Street Furniture and Billboard suffered from continuing
mobility restrictions across the globe, while Transport remained
meaningfully impacted by a virtually non-existent international air
traffic and a much lower level of commuters than pre-pandemic in
public transport. Our digital revenue represents 21.5% of Group
revenue by the end of March 2021.
Street Furniture and Billboard were impacted by
stronger stay-at-home requirements than in Q1 2020 introduced in
some large countries, such as US, UK and Germany which entered into
lockdown only at the end of March 2020. In Transport,
notwithstanding the non-renewal of the New York airports contract,
North America and UK were the most affected regions over the
period. As expected, Mainland China saw a double digit rebound
thanks to domestic advertising revenue with audiences almost back
to pre-Covid level.
As far as Q2 2021 is concerned, and taking
into account an historic organic revenue decline of -63.4% last
year, we now expect an adjusted organic revenue growth above +60%
driven as anticipated by a strong advertising rebound in street
furniture and billboard. These two business segments start to
benefit from a return of urban audiences to pre-Covid level thanks
to the acceleration of the vaccination campaigns and the end of
lockdowns in many geographies while transport remains affected by
lower traffic numbers with the exception of domestic in Mainland
China.
With an environment that will continue to be
challenging and an inevitable uncertainty over the pace of the
recovery, we remain highly focused on the health and safety of our
teams, close relationship with clients and partners, strict cost
control as well as cash preservation including but not limited to
rents & fees reliefs, reduced capital investment and tight
control over working capital requirement.
Finally, I would like to sincerely thank for the
hard work, commitment and motivation of our talented teams across
the world.
In a media landscape increasingly fragmented and
more and more digital, out-of-home and digital out-of-home
advertising reinforce its attractiveness. As the most digitised
global OOH company with our new data-led audience targeting and
programmatic platform, our well diversified portfolio, our ability
to win new contracts, the strength of our balance sheet and the
high quality of our teams across the world, we believe we are well
positioned to benefit from the rebound.”
ADJUSTED DATA
Under IFRS 11, applicable from January 1st,
2014, companies under joint control are accounted for using the
equity method.However, in order to reflect the business reality of
the Group, operating data of the companies under joint control will
continue to be proportionately integrated in the operating
management reports used to monitor the activity, allocate resources
and measure performance.Consequently, pursuant to IFRS 8, Segment
Reporting presented in the financial statements complies with the
Group’s internal information, and the Group’s external financial
communication therefore relies on this operating financial
information. Financial information and comments are therefore based
on “adjusted” data, consistent with historical data prior to 2014,
which is reconciled with IFRS financial statements.In Q1 2021, the
impact of IFRS 11 on adjusted revenue was -€37.6 million
(-€65.4 million in Q1 2020) leaving IFRS revenue at
€416.7 million (€658.2 million in Q1 2020).
ORGANIC GROWTH DEFINITIONThe
Group’s organic growth corresponds to the adjusted revenue growth
excluding foreign exchange impact and perimeter effect. The
reference fiscal year remains unchanged regarding the reported
figures, and the organic growth is calculated by converting the
revenue of the current fiscal year at the average exchange rates of
the previous year and taking into account the perimeter variations
prorata temporis, but including revenue variations from the gains
of new contracts and the losses of contracts previously held in our
portfolio.
€m |
|
Q1 |
2020 adjusted revenue |
(a) |
723.6 |
2021 IFRS revenue |
(b) |
416.7 |
IFRS 11 impacts |
(c) |
37.6 |
2021 adjusted revenue |
(d) = (b) + (c) |
454.3 |
Currency impacts |
(e) |
10.6 |
2021 adjusted revenue at
2020 exchange rates |
(f) = (d) + (e) |
464.9 |
Change in scope |
(g) |
8.0 |
2021 adjusted organic
revenue |
(h) = (f) + (g) |
472.9 |
Organic growth |
(i) = (h) / (a) - 1 |
-34.6% |
€m |
Impact of currencyas of March
31st,
2021 |
BRL |
2.1 |
USD |
1.7 |
HKD |
1.6 |
AUD |
(2.9) |
Other |
8.1 |
Total |
10.6 |
Average exchange rate |
Q1 2021 |
Q1 2020 |
BRL |
0.1515 |
0.2034 |
USD |
0.8300 |
0.9069 |
HKD |
0.1070 |
0.1167 |
AUD |
0.6412 |
0.5956 |
Next
information:Annual General Meeting of Shareholders: May
20th, 2021H1 2021 results: July 29th, 2021 (before market)
Key Figures for JCDecaux
- 2020 revenue: €2,312m
- Present in 3,670 cities with more
than 10,000 inhabitants
- A daily audience of more than
840 million people in more than 80 countries
- 10,230 employees
- Leader in self-service bike rental
scheme: pioneer in eco-friendly mobility
- 1st Out-of-Home Media company to
join the RE100 (committed to 100% renewable energy)
- JCDecaux is listed on the Eurolist
of Euronext Paris and is part of the Euronext 100 and Euronext
Family Business indexes
- JCDecaux is recognised for its
extra-financial performance in the FTSE4Good (4.6/5) and CDP (A
Leadership) rankings, and has obtained the MSCI AAA score for the
4th year in a row
- 964,760 advertising panels
worldwide
- N°1 worldwide in street furniture
(489,500 advertising panels)
- N°1 worldwide in transport
advertising with 156 airports and 249 contracts in metros, buses,
trains and tramways (329,790 advertising panels)
- N°1 in Europe for billboards
(129,970 advertising panels)
- N°1 in outdoor advertising in
Europe (615,530 advertising panels)
- N°1 in outdoor advertising in
Asia-Pacific (216,590 advertising panels)
- N°1 in outdoor advertising in Latin
America (66,120 advertising panels)
- N°1 in outdoor advertising in
Africa (22,500 advertising panels)
- N°1 in outdoor advertising in the
Middle East (15,350 advertising panels)
Forward looking statementsThis
news release may contain some forward-looking statements. These
statements are not undertakings as to the future performance of the
Company. Although the Company considers that such statements are
based on reasonable expectations and assumptions on the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual performance to
differ from those indicated or implied in such statements.These
risks and uncertainties include without limitation the risk factors
that are described in the annual report registered in France with
the French Autorité des Marchés Financiers.Investors and holders of
shares of the Company may obtain copy of such annual report by
contacting the Autorité des Marchés Financiers on its website
www.amf-france.org or directly on the Company website
www.jcdecaux.com.The Company does not have the obligation and
undertakes no obligation to update or revise any of the
forward-looking statements.
Communications
Department: Albert Asseraf+33 (0) 1 30 79
79 35 – albert.asseraf@jcdecaux.com
Investor
Relations: David Bourg, Group Chief
Financial and Administrative Officer+33 (0) 1 30 79 79 93 –
david.bourg@jcdecaux.com
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