Decaux Reports Revenue Slide

31 October 2003

A decline in billboard business has hit revenues at French outdoor ad giant J C Decaux.

Europe's largest outdoor company reported a 2.7% fall in total third-quarter sales to €347.8 million ($406.8m; £238.9m). Turnover at its billboard division slumped 7% to €97.3m, in spite of strong trading in the UK, Ireland, Spain and Italy.

The revenue decline was less pronounced at the firm's other divisions. Street furniture dipped 0.1% to €182.5m, while transport fell 2.9% to €68.0m despite a widespread pick-up in airport advertising.

However, on an organic basis (excluding acquisitions, disposals and currency variations), Q3 revenues climbed 0.4%, as a 3.4% slide at its billboard arm was offset by rises of 1.4% and 3.3% at street furniture and transport respectively.

"As expected, trading conditions remained challenging," declared chairman and co-chief executive Jean-Francois Decaux. "However, our third quarter revenues highlight a strengthening in our street furniture business, as certain European markets, including Germany, began to show signs of recovery. In the other divisions, weak billboard sales over the summer were partly offset by the ongoing recovery in transport advertising."

For the nine months ending September 30, Decaux reported a 2.7% slip in revenues to €1.1 billion as all three of its divisions fell.

Data sourced from: J C Decaux; additional content by WARC staff