JCDecaux Reports Strong Growth in 2023 half year benchmark

JCDecaux Reports Strong Growth at 2023 half year benchmark

Paris, July 31st, 2023 – JCDecaux SE, the leading global outdoor advertising company, has recently announced its financial results for the first half of 2023. The company reported a robust performance, with revenue growth exceeding expectations.

Positive Revenue Growth

In the first half of 2023, JCDecaux achieved a group revenue of €1,585.0 million, representing a remarkable growth of +7.5% compared to the same period last year. Even on an organic basis, which excludes the impact of foreign exchange fluctuations and changes in perimeter, the revenue increased by an impressive +7.8%. The second quarter alone witnessed a growth rate of +10.3% on an organic basis, indicating strong momentum in the business.

Driving Force: Digital Out of Home (DOOH)

A significant driver of JCDecaux’s success has been the strong growth of Digital Out of Home (DOOH). In the first half of 2023, DOOH revenues surged by +17.1% (+18.0% on an organic basis) and accounted for 32.7% of the group’s total revenue. This marks an increase from 30.0% in the same period last year. The company’s strategic focus on selective digital screen placements in prime locations and the development of data capabilities has paid off handsomely.

Programmatic advertising revenues through the VIOOH SSP witnessed a substantial growth rate of +63.3% during the same period. The innovative dynamic data-driven campaigns and new advertisers contributed significantly to these impressive figures. Programmatic advertising now constitutes 7.1% of JCDecaux’s digital revenue for the first half of 2023.

Segment-wise Performance

The different business segments within JCDecaux also demonstrated varying growth rates. Street Furniture, one of the company’s core segments, experienced organic growth of +3.8% in the first half of 2023 and outperformed its 2019 revenue levels globally. Billboard, however, faced a slight decline of -0.5% organically during the same period. Nevertheless, it surpassed 2019 revenue levels in Asia-Pacific and North America.

Transport, the segment significantly affected by the pandemic’s impact on air travel, saw a remarkable rebound with +19.0% organic growth. While global air travel has already surpassed 90% of pre-Covid levels, certain regions like Asia, especially China, are still recovering at a slower pace due to lower international air traffic and non-renewal of metro and airport contracts in Guangzhou.

Geographical Expansion

JCDecaux witnessed positive growth across all geographies in the first half of 2023. Asia-Pacific and Rest of the World experienced double-digit growth, driven by a strong recovery of mobility in these regions. France, Rest of Europe, and Rest of the World were nearly at 2019 revenue levels, indicating a promising comeback from the pandemic’s impact. However, Asia, particularly China, still lags due to the challenges posed by the pandemic.

Improvement in Operating Margin

JCDecaux’s adjusted operating margin improved by €19.6 million, reaching €203.1 million for the first half of 2023, showcasing a significant year-on-year increase of +10.7%. This achievement is particularly noteworthy given the inflationary pressures on costs. The street furniture division played a key role in driving this positive operating leverage through revenue recovery and contract renegotiations. Meanwhile, the transport and traditional billboard businesses are gradually recovering, but at a slower pace, primarily due to challenges in certain regions.

Strategic Acquisitions and Contract Wins

The growth strategy of JCDecaux continues to be focused on both organic contract wins and strategic acquisitions. Notably, the company secured the largest OOH/DOOH media franchise in Norway, contributing to its expansion in the region. Additionally, the acquisition of Clear Channel’s activities in Italy and Spain during the second quarter further bolstered JCDecaux’s position in the market.

JCDecaux’s first half of 2023 results demonstrate strong growth, driven by the rise of digital out-of-home advertising and a gradual recovery in the transport segment. The company’s strategic initiatives, including selective digital screen placements, data capabilities, and programmatic advertising, have proven successful in generating incremental revenue. While some challenges remain, JCDecaux’s positive operating leverage and geographic expansion bode well for its continued growth and success in the outdoor advertising industry.

Please note that the financial data and figures mentioned in this article are based on JCDecaux’s press release for the first half of 2023 and should be referred to as such for accurate and up-to-date information: JCDecaux’s press release