Full-Year 2014 Revenues

 

• 2014 adjusted revenues up 5.1% to €2,813.3 million
• 2014 adjusted organic revenues up 3.8%
• Q4 adjusted revenues up 7.4% to €839.2 million
• Q4 quarter adjusted organic revenues up 3.6%

JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its revenues for the full-year 2014.

Following the adoption of IFRS 11 from January 1st, 2014, the data presented below is adjusted to include our prorata share in companies under joint control, and therefore is comparable with historical data. Please refer to the paragraph “Adjusted data” on page 3 of this release for the definition of adjusted data and reconciliation with IFRS.

2014 adjusted revenues increased by 5.1% to €2,813.3 million compared to €2,676.2 million in 2013. Excluding the negative impact from foreign exchange variations and the positive impact from changes in perimeter, adjusted revenues grew by 3.8%.
Adjusted advertising revenues, excluding revenues related to sale, rental and maintenance, increased by 3.5% on an organic basis in 2014.

By activity:
 

Full-Year adjusted revenues	2014 (€m)	2013 (€m)	Reported growth	Organic growth(a)
Street Furniture	1,275.7	1,191.9	+7.0%	+4.3%
Transport	1,078.8	1,014.0	+6.4%	+6.2%
Billboard	458.8	470.3	-2.4%	-2.6%
Total	2,813.3	2,676.2	+5.1%	+3.8%

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

  

Q4 adjusted revenues	2014 (€m)	2013 (€m)	Reported growth	Organic growth(a)
Street Furniture	389.3	357.7	+8.8%	+4.7%
Transport	324.0	294.9	+9.9%	+4.1%
Billboard	125.9	128.5	-2.0%	-0.7%
Total	839.2	781.1	+7.4%	+3.6%

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

By geographic area:
 

Full-Year adjusted revenues	2014 (€m)	2013 (€m)	Reported growth	Organic growth(a)
Europe (b)	765.0	741.0	+3.2%	+4.1%
Asia-Pacific	656.2	613.2	+7.0%	+7.3%
France	621.3	618.8	+0.4%	+0.4%
United Kingdom	331.2	309.5	+7.0%	+1.6%
Rest of the World	270.3	213.8	+26.4%	+14.5%
North America	169.3	179.9	-5.9%	-5.8%
Total	2,813.3	2,676.2	+5.1%	+3.8%

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
Full-year adjusted revenues increased by 7.0% to €1,275.7 million (+4.3% on an organic basis). Europe (including France and the UK) and Asia-Pacific saw positive growth. The Rest of the World delivered strong growth across most markets. North America was down.

In the fourth quarter, adjusted revenues increased by 8.8% to €389.3 million (+4.7% on an organic basis). Europe (including France and the UK) was up. Asia-Pacific delivered robust organic revenue growth. The Rest of the World saw strong growth across most markets. North America was down.
Fourth quarter adjusted advertising revenues, excluding revenues related to sale, rental and maintenance were up 3.7% on an organic basis compared to the fourth quarter of 2013.

Transport
Full-year adjusted revenues increased by 6.4% to €1,078.8 million (+6.2% on an organic basis). Asia-Pacific continued to deliver good growth with China being robust. Europe (including France and the UK) was up. North America was down. The Rest of the World was strong.

During the fourth quarter, adjusted revenues increased by 9.9% to €324.0 million (+4.1% on an organic basis). Asia-Pacific and Europe (including France and the UK) were up. North America returned to solid growth. The Rest of the World was up.

Billboard
Full-year adjusted revenues fell by 2.4% to €458.8 million (-2.6% on an organic basis). Europe (including France and the UK) was slightly down. The Rest of the World saw revenue declines, largely due to the very difficult market conditions in Russia and Ukraine. Our Russian revenues were also impacted by the delayed removal of c. 5,000 illegal billboards in Moscow, which is now completed. Whilst not material at this stage, we recorded in 2014 our first revenues from the roll out of our premium digital billboard network in Chicago, which is still underway.

In the fourth quarter, adjusted revenues decreased by 2.0% to €125.9 million (-0.7% on an organic basis). Europe (including France and the UK) saw very slight growth, which was more than offset by weak revenues from the Rest of the World.

Commenting on the Group’s 2014 revenue performance, Jean-Charles Decaux, Chairman of the Executive Board and Co-Chief Executive Officer of JCDecaux, said:

“JCDecaux achieved another year of record revenues at 2,813 million euros, with an organic growth rate of +3.8%. We ended 2014 better than expected, with organic growth of +3.6% in Q4 despite high comparables.
We are pleased that our European activities continued to see some recovery following the initial positive signs seen in the second half of 2013, despite the stagnation of the economy. Furthermore, our fast growing markets are still performing well and now represent 34% of our revenues. In addition, the selective roll out of our premium digital offer is a significant growth driver and now represents 9% of our sales.
With 45% of our 2014 Group revenues, Street Furniture remains our largest division with solid organic revenue growth of +4.3%. Our Transport business is still our fastest growing segment with +6.2% organic growth and is now nearly 40% of our total sales. On the other hand, Billboard is still challenging with an organic revenue decline of 2.6% reflecting the lack of consolidation in most European markets.

2014 was marked by the successful integration of Eumex which allows us to offer a strong advertising platform to clients in Latin America. We were also very pleased to recently announce the signing of a contract for the acquisition of Continental Outdoor in Africa. This will enable us to become the market leader in this continent with good growth potential.

Looking forward, we remain convinced that out-of-home retains its strength and attractiveness in an increasingly fragmented media landscape. With our accelerating exposure to fast growing markets, our growing premium digital portfolio, our ability to win new contracts and the high quality of our teams across the world, we believe we are well positioned to outperform the advertising market and increase our leadership position in the outdoor advertising industry through profitable market share gains. The strength of our balance sheet remains a key competitive advantage that will allow us to pursue further external growth opportunities as they arise.

As usual, we will provide guidance for Q1 when we release our full-year 2014 results on March, 5th.”

Adjusted data
Under IFRS 11, applicable from January 1st, 2014, companies under joint control are accounted for using the equity method.
However in order to reflect the business reality of the Group, operating data of the companies under joint control will continue to be proportionately integrated in the operating management reports used to monitor the activity, allocate resources and measure performance.
Consequently, pursuant to IFRS 8, Segment Reporting presented in the financial statements shall comply with the Group’s internal information, and the Group’s external financial communication will therefore rely on this operating financial information. Financial information and comments will therefore be based on "adjusted" data, consistent with historical data, which will be reconciled with IFRS financial statements.
In Q4 2014, the impact of IFRS 11 on adjusted revenues is -€95.8 million (-€104.0 million in Q4 2013), leaving Q4 IFRS revenues at €743.4 million (€677.1 million in Q4 2013).
For the full-year 2014, the impact of IFRS 11 on adjusted revenues is -€331.1 million (-€342.1 million for the full-year 2013), leaving 2014 IFRS revenues at €2,482.2 million (€2,334.1 million for the full-year 2013).
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Next information:
2014 Annual Results: March 5, 2015 (before market)

 
Forward looking statements
 This news release may contain some forward-looking statements. These statements are not undertakings as to the future performance of the Company. Although the Company considers that such statements are based on reasonable expectations and assumptions on the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual performance to differ from those indicated or implied in such statements.
These risks and uncertainties include without limitation the risk factors that are described in the annual report registered in France with the French Autorité des Marchés Financiers.
Investors and holders of shares of the Company may obtain copy of such annual report by contacting the Autorité des Marchés Financiers on its website www.amf-france.org/ or directly on the Company website www.jcdecaux.com.
The Company does not have the obligation and undertakes no obligation to update or revise any of the forward-looking statements.