Decaux Earnings Fall Despite Street Furniture Revenue Growth

19 March 2002

Outdoor colossus J C Decaux posted a 2.1% fall in last year’s EBITDA (earnings before interest, tax, depreciation and amortization) to €377.3 million ($333.1m; £233.4m), but remained positive about the coming months.

Overall revenues rose 8.9% in 2001 to €1.54 billion, though Decaux was hit by €5.8m of restructuring charges. As revealed in February, the French-headquartered group managed slight organic growth (excluding acquisitions) of 1%, compared with a generally declining market [WAMN: 13-Feb-02].

Like-for-like revenues tumbled 9% at its billboard unit due to competitive price pressure, while those at the transport division slid 0.6%. Such declines were offset by 6.9% organic growth at its street furniture arm – the world’s largest – with total revenues at the unit (including acquisitions) surging 10% to €798.2m.

“As far as 2002 is concerned,” commented chairman and co-ceo Jean-François Decaux, “we expect to see continued organic growth in our street furniture business, confirming its ongoing resilience. While billboard is improving, transport continues to be difficult following September 11, but should improve in the second half when passenger numbers are expected to show a full recovery.”

Data sourced from: BrandRepublic (UK); J C Decaux; additional content by WARC staff