Europe’s larges outdoor advertising contractor, Sainte Apolline-headquartered J C Decaux, reports a marginal 0.9% decrease in first half advertising revenues, due to the ongoing frailty in adspend.
The hardest-hit of the group’s units was its world-leading transport division which dominates airport advertising across the globe. Air travel in particular, noted the group, continues to suffer from downturns linked to the “difficult environment” post-September 11. This led to a 15.9% dive in divisional revenues to €133.3 million ($131.52m; £83.59m).
Across-the-board revenue growth was 3.3%, with the street furniture and billboard units generating respective growth of 3.9% to €413 million and 1.4% (€201.9m). Decaux’s US shopping mall business also posted “good advertising sales growth, as the medium continued to gain in popularity among advertisers seeking tightly targeted retail advertising.”
Second half revenues are expected to be “broadly in line” with H1 and Decaux does not expect to see recovery in the transport sector to until 2003. Full H1 results will be released on September 18.
Joint-ceo Jean-Charles Decaux summed-up in bullish mode, claiming the group is “well positioned to benefit from any advertising upturn in the coming months or in 2003.” He assured investors that the company would continue to “outperform both the advertising market as a whole and the outdoor advertising market.”
Data sourced from: AdAgeGlobal.com; additional content by WARC staff