JCDecaux SE, the global leader in outdoor advertising, has reported a solid performance for the first half of 2024, showcasing significant growth fueled by its digital transformation and commitment to environmental, social, and governance (ESG) leadership. The company’s strong financial results reflect its strategic focus on Digital Out-of-Home (DOOH) advertising and its efforts to maintain operational efficiency across all regions.
Key Metrics: Summary
- Adjusted revenue: €1,807.6 million (+14.0% YoY).
- Organic revenue growth: +13.4%.
- Digital Out-of-Home (DOOH) revenue: +28.3%, contributing 36.8% of group revenue.
- Adjusted operating margin: €261.4 million (+28.7% YoY).
- Net income (Group share): €94.4 million (+149.6% YoY).
- Adjusted EBIT (before impairment): €112.6 million (+€100 million YoY).
- Programmatic advertising revenue: +61.8%, totaling €59.7 million.
- Adjusted free cash flow: -€20.1 million, improved by €159.6 million.
- Net debt: Reduced by €49.0 million to €956.8 million.
Financial Performance Overview
In H1 2024, JCDecaux achieved adjusted revenue of €1,807.6 million, marking a 14.0% year-over-year (YoY) increase. Organic revenue growth reached 13.4%, underscoring the company’s continued expansion and recovery post-pandemic. Notably, in Q2 2024, the company recorded 16.5% growth in adjusted revenue, demonstrating strong business momentum across all segments.
The company reported significant improvements in profitability, reflecting its operational efficiency:
- Adjusted operating margin increased to €261.4 million, up 28.7% YoY.
- Net income (Group share) surged to €94.4 million, representing a 149.6% YoY increase, a strong rebound from the previous year’s figures.
- Adjusted EBIT (before impairment) grew to €112.6 million, up €100.0 million YoY, highlighting the company’s ability to generate higher profits as it scales.
Segment Analysis: Digital Transformation Leads the Way
JCDecaux’s growth was led by its Digital Out-of-Home (DOOH) advertising segment, which continues to be a critical driver of revenue:
- DOOH revenue grew by 28.3% YoY, with organic growth at 27.8%. The segment contributed 36.8% of total group revenue, a notable increase from 32.7% in H1 2023.
- Programmatic advertising through the company’s VIOOH Supply-Side Platform (SSP) recorded a 61.8% increase, with revenues reaching €59.7 million. This was driven by the increasing demand for dynamic, data-driven campaigns and the expanding programmatic ecosystem, which now operates in 21 countries.
Other segments also contributed positively to the company’s overall performance:
- Street Furniture: Adjusted revenue increased by 11.6%, reaching €917.8 million. Organic growth was 10.6%, with all regions contributing positively. Revenue growth in France was boosted by preparations for the Paris 2024 Olympic Games.
- Transport: Adjusted revenue grew by 18.1%, reaching €633.9 million. Organic growth in this segment was 18.8%, reflecting the continued recovery of global air travel and commuter traffic in public transport. However, China’s performance in this segment remained below pre-pandemic levels.
- Billboards: Adjusted revenue increased by 13.4%, driven by high levels of digitalisation, with revenues reaching €255.9 million. Organic growth in the billboard segment was 10.4%.
Geographic Expansion: Strong Performance Across Regions
JCDecaux’s H1 2024 results also reflect positive growth across all geographic regions:
- United Kingdom: Revenues surged by 33.2% YoY (organic growth: 29.8%), driven by the growing digital network.
- Asia-Pacific: Revenue grew by 11.1% YoY (organic growth: 14.2%), with strong recovery in countries like Australia and Japan.
- Rest of Europe: The region posted a 15.3% increase in revenue (organic growth: 13.2%).
- France: Revenue increased by 9.3%, benefiting from Olympic-related campaigns and strong performance in street furniture.
- North America: Revenue grew by 4.3%, reflecting a slower but steady recovery.
While China’s growth remained below pre-COVID levels, the region showed double-digit organic revenue growth, indicating an ongoing recovery.
Sustainability and ESG Leadership
JCDecaux continues to lead the way in sustainability, achieving best-in-class ESG ratings from leading extra-financial rating agencies. The company’s carbon reduction strategy, aimed at reaching Net Zero Carbon by 2050, has been approved by the Science Based Targets initiative (SBTi), reinforcing its commitment to environmental responsibility.
The company was also recognized on the CDP A List for its strong climate action efforts, further enhancing its reputation as a leader in sustainable business practices. JCDecaux’s leadership extends to eco-friendly mobility, where it remains the world’s largest provider of self-service bike rental schemes.
Financial Health: Strong Cash Flow and Reduced Debt
JCDecaux’s financial health remains robust, supported by strong operating cash flows and effective debt management:
- Adjusted operating cash flow increased by 21.5% YoY, reaching €138.9 million.
- Adjusted free cash flow improved significantly to -€20.1 million, a €159.6 million improvement compared to H1 2023, reflecting better working capital management.
- Net debt was reduced by €49.0 million, bringing the total to €956.8 million. The reduction in debt was largely driven by proceeds from the sale of shares in APG|SGA and disciplined capital expenditure, which remained contained at 7.8% of H1 2024 revenue.
Future Outlook: Continued Digital Expansion and Growth in H2 2024
Looking ahead, JCDecaux expects its growth momentum to continue into the second half of 2024. For Q3 2024, the company forecasts organic revenue growth of around 10%, driven by further expansion in DOOH and the positive impact of the Paris Olympics. The company is well-positioned to benefit from the ongoing digital transformation in the Out-of-Home (OOH) advertising market, which continues to expand its share in the global media landscape.
JCDecaux’s leadership in digital advertising and its strong sustainability credentials position it for continued success, as it leverages technological advancements and data-driven solutions to deliver impactful advertising campaigns.
Explore more on JCDecaux, Website: https://www.jcdecaux.com/
