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JCDecaux H1 revenue down 41% in ‘volatile’ market 

Global outdoor advertising leader JCDecaux reported adjusted revenue was down -41.6% to €1,075.4 million in the first half of 2020 after a collapse in advertising caused by Covid-19. “The global advertising market remains highly volatile with low visibility. Considering the risk of new waves of Covid-19 and new local lockdowns being implemented, it remains very difficult to give a guidance for Q3 2020.”

hong kong airport
   JCDecaux digital display in Hong Kong Airport

jean charles decaux

 "Well positioned to benefit from the
   rebound": Jean-Charles Decaux,
   chairman & Co-CEO of JCDecaux

 “During the Covid-19 lockdown period, the temporary historic drop in urban and transport audiences as well as severe economic uncertainties led companies to react immediately and to reduce their advertising spend in an unprecedented scale,” said Jean-Charles Decaux, chairman of the executive board and co-CEO of JCDecaux.

“Once lockdown measures were lifted, urban audiences started to recover progressively in Street Furniture and in Billboard while Transport audiences are still lagging significantly, mainly in airports.

“Advertising revenue has, for the time being, not followed the same pace of recovery and we see an important difference between audiences’ levels, which are in some geographies close to pre Covid 19, and revenue levels which do not yet reflect the positive momentum in urban audiences.”

Group revenue declined by €766.9 million reaching €1,075.4 million with a decrease in adjusted organic revenue at -40.8%, mainly in Q2 2020 (63.4%). H1 2020 operating margin reduced significantly to -€61.8 million. 

“While the Group started the year positively, mainly in Street Furniture (up +3.9% by the end of February), the performance was hardly hit by the Covid-19 outbreak from March onwards,” Decaux said. “Immediate and dedicated action was taken on operating and financial levers to mitigate this decline and save cash, including but not limited to rent reliefs, severe cost management, reduced capital investment, tight control over working capital requirement and dividend cancellation.

“Our digital revenue now represents 24.0% of Group revenue, up +10bp for the same period last year. After a solid Q1 2020 performance digital revenue declined in Q2 2020, to post for H1 2020 a -41.3% decline.

“We have further reinforced our global leading position by completing the acquisition of a minority stake in Clear Media Limited as part of a consortium of investors (including Han Zi Jing, Chief Executive Officer of Clear Media, Antfin (Hong Kong) Holding Limited and China Wealth Growth Fund III L.P.). This strategic move combined with the structural long-term growth of the outdoor advertising industry in China will enable the Group to come out of this crisis in a stronger position.

“Looking forward, the global advertising market remains highly volatile with low visibility. Considering the risk of new waves of Covid-19 and new local lockdowns being implemented, it remains very difficult to give a guidance for Q3 2020.

“Finally, I would like to thank all of our teams around the world. Our employees have demonstrated exemplary behaviour, with outstanding commitment and solidarity, including salary cuts, despite the challenges they may have faced, professionally and personally, during and after lockdown periods.

“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.”

H1 2020 results

Adjusted revenue down -41.6% to €1,075.4 million

Adjusted organic revenue down -40.8%, with Q2 at -63.4%

Adjusted operating margin of -€61.8 million

Adjusted EBIT, before impairment charge, of -€258.5 million

Net income Group share of -€254.9 million, including an impairment charge of €55.9 million

Positive adjusted free cash flow of €69.5 million (vs. -€7.8m in H1 2019)

No quarterly guidance on adjusted organic revenue growth provided in 2020 due to Covid 

 Full release