Double digit revenue growth for JCDecaux in H1 2024 results

Snapshot

• Adjusted revenue up +14.0% to €1,807.6 million

• Adjusted organic revenue up +13.4%, with Q2 at +15.4%

• Adjusted operating margin of €261.4 million, +28.7% yoy, +€58.3 million yoy

• Adjusted EBIT, before impairment, of €112.6 million, +€100.0 million yoy

• Net income Group share of €94.4 million, +149.6% yoy, +€56.6 million yoy

• Adjusted operating cash flows of €138.9 million, +21.5% yoy, +€24.5 million yoy

• Adjusted free cash flow of -€20.1 million, +€159.6 million yoy

• Best-in-class ESG ratings, carbon reduction trajectory approved by the SBTi

• Third quarter 2024 adjusted organic revenue growth expected to be around +10%

JCDecaux has announced its 2024 half-year results.

Commenting on the 2024 half-year results, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said “Our H1 2024 group revenue grew by +14.0%, +13.4% on an organic basis, to reach €1,807.6 million, including +15.4% in Q2 2024 on an organic basis, above our expectations, thanks to a strong performance of digital revenue and a strong trading momentum in all activities.

Digital Out of Home (DOOH) grew strongly at +28.3% in H1 2024, +27.8% on an organic basis, to reach 36.8% of Group revenue vs 32.7% in H1 2023, while analogue advertising revenue grew mid single-digit despite the conversion of some premium analogue sites to digital. We maintained our focus on the selective roll-out of digital screens in prime locations, as well as on the development of our data and programmatic capabilities.

Programmatic advertising revenues through the VIOOH SSP (supply-side platform), which include mostly incremental revenue from innovative dynamic data-driven campaigns and new advertisers, grew by +61.8% in H1 2024 to reach €59.7 million i.e. 9.0% of our digital revenue. The DOOH programmatic ecosystem continued to gain traction, with the dynamism and the growing number of DSPs (demand-side platforms) connected to VIOOH (the most connected SSP of the OOH media industry with 46 DSPs connected) now active in 21 countries, including Displayce a DSP connected in 80 countries.

All activities grew double-digit organically in H1 2024. Street Furniture grew by +10.6% with continued strong momentum, Transport grew by +18.8% reflecting the solid growth in both airports and public transport systems and Billboard grew by +10.4% driven by its most digitised markets.

All geographies grew positively organically in H1 2024 including Asia-Pacific, United Kingdom, Rest of Europe and Rest of the World growing double-digit. The gradual recovery of our activity in China, which remained well below pre-covid levels, continued with a double-digit organic revenue growth rate.

Our top 10 advertising categories are up mid-single to strong double-digit revenue growth led by FMCG and TMT advertisers.

Our adjusted operating margin demonstrated a good operating leverage as it has improved by €58.3 million to reach €261.4 million, a +28.7% year-on-year increase, twice the revenue growth rate. All activities improved their operating margin rates. Transport margin rate increased but remained affected by the lower level of activity in China. Billboard operating margin rate significantly improved driven by both our most digitised markets and the rationalisation of our billboard activities in France. Our other P&L performance indicators improved accordingly. The sale of 13.56% of the shares of APG|SGA also had a positive impact on our EBIT and net result. Operating cash flows reached €138.9 million increasing by €24.5 million year-on-year, +21.5% compared to H1 2023, and our free cash flow improved significantly to reach a satisfactory level given the seasonality of our activity at - €20.1 million.

We have confirmed once again the excellence of our environmental performance, recognised as best-in-class by extra-financial rating agencies including our placement on the CDP A List. Our Climate Strategy aiming for Net Zero Carbon by 2050 (scopes 1, 2, and 3) has been approved by the SBTi.

As far as Q3 is concerned, we now expect an organic revenue growth rate around +10% driven by continued strong digital revenue growth across all business segments and including the positive impact of the Paris Olympic Games in France.

We are confident that Out of Home (OOH) will continue to grow its market share in a fragmented media landscape with Digital Out of Home (DOOH) being the fastest growing media segment. JCDecaux as the industry leader and the most digitised global OOH Media company is well positioned to benefit from this digital transformation.”

Following the adoptions of IFRS 11 from January 1st, 2014 and IFRS 16 from January 1st, 2019, and in compliance with the AMF’s instructions, the operating data presented below are adjusted:

to include our prorata share in companies under joint control, regarding IFRS 11,

to exclude the impact of IFRS 16 on our core business lease agreements (lease agreements of locations for advertising structures excluding real estate and vehicle rental contracts).

Please refer to the paragraph “Adjusted data” on page 5 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

Adjusted revenue for the six months ending June 30 2024 increased by 14.0% to €1,807.6 million from €1,585.0 million in the same period last year. On an organic basis (i.e. excluding the negative impact of -€7.3 million from foreign exchange variations and the positive impact of €18.2 million from changes in perimeter), adjusted revenue increased by 13.4%. Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by 13.5% on an organic basis in the first half of 2024.

In the second quarter, adjusted revenue increased by 16.5% to €1,006.1 million. On an organic basis, adjusted revenue increased by 15.4% compared to Q2 2023.

Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by 14.6% on an organic basis in Q2 2024.

Adjusted revenue

Adjusted organic revenue growth (a)

1. Excluding acquisitions/divestitures and the impact of foreign exchange

Adjusted revenue by geographic area

1. Excluding acquisitions/divestitures and the impact of foreign exchange
2. Excluding France and the United Kingdom

Please note that the geographic comments below refer to organic revenue growth.

STREET FURNITURE

First half adjusted revenue increased by +11.6% to €917.8 million (+10.6% on an organic basis) driven by a continued strong sales momentum. All regions grew positively year-on-year including UK, Rest of Europe, Asia-Pacific and Rest of the World growing double-digit. First half adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture were up +9.9% on an organic basis compared to the first half of 2023. Non-advertising revenue have been partly driven by the sale to the city of Paris of the next generation of automatic public toilets.

In the second quarter, adjusted revenue increased by +12.8% to €517.1 million (+11.8% on an organic basis). All regions grew positively year-on-year and all regions except North America grew double-digit. Revenue growth in France has been positively impacted by the Paris Olympic Games. In the second quarter, adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture were up +10.0% on an organic basis compared to the second quarter 2023.

TRANSPORT

Transport grew by +18.1% in adjusted revenue in H1 2024, reaching €633.9 million (+18.8% on an organic basis) reflecting the growth of air travel around the world, now above pre-covid level, and the rebound of commuter traffic in public transport. France, UK, Rest of Europe and Asia-Pacific grew double-digit. Transport remained meaningfully impacted by the lower level of activity in China compared to the pre-covid period.

In the second quarter, adjusted revenue increased by +22.3% to €345.7 million. On an organic basis, adjusted revenue increased by +22.1% compared to the same period last year. France, UK, Rest of Europe and Asia-Pacific grew double-digit year-on-year.

BILLBOARD

First half adjusted revenue increased by +13.4% to €255.9 million (+10.4% on an organic basis) driven by the most digitised markets, while France was flat due to the ongoing rationalisation of our inventory in compliance with regulations. UK, Rest of Europe and Rest of the World were the drivers of growth with a double-digit increase.

In the second quarter, adjusted revenue increased by +16.8% to €143.3 million (+13.3% on an organic basis). UK, Rest of Europe and Rest of the World grew double-digit while France and North America grew high single-digit.