(AOF) – Advertising display giant JCDecaux reported sales growth of more than 14% in the third quarter, above expectations, but remains impacted by travel restrictions in China. Its turnover in the period was 808.4 million euros. Revenue from digital developments (DOOH) has “strongly increased” (+ 25.5%) to almost 30% of total revenue.
Globally, the exposure on street furniture exceeded the level of 2019 before the Covid-19 pandemic, with a turnover of 412.5 million euros (+ 8.2%). Activities at airports also increased by + 10.2% (277.7 million euros) thanks to the “strong rebound” in world air traffic, but remain conditioned by mobility restrictions in China.
Revenues from display on billboards increased by 9% (118 million euros), “driven by the growth of the Asia-Pacific area and in particular of Australia”.
While the outlook for the sector is clouded due to the macroeconomic environment, JCDecaux is counting on “solid commercial momentum” and expects growth on constant data “around 3%”.
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– World leader in outdoor advertising created in 1964;
– Group inventor of the concept of street furniture (52.4% of sales), present in transport advertising (32%) and large format billboards (15.6%);
– Worldwide presence, with revenues of € 2.74 billion, divided between continental Europe for 49%, Asia-Pacific for 25% (including China, 1
group market), United Kingdom for 9% and North America for 6%;
– Business model divided into 3 advertising activities with street furniture (52.5%), land and airport transport networks (30%) and supporting large-format advertising billboards, with diversification into bike-sharing (No. 1 in the world );
– Capital 64.67% owned by the holding company of the founding family, with a supervisory board of 12 members, the management board is co-chaired by Jean-François and Jean-Charles Decaux;
– Solid financial position with net financial debt of € 977 million at the end of June against € 1.6 billion of shareholders’ equity.
– Triple strategy: internal growth through contract acquisitions, strategic acquisitions and combined use of digital, data and programmatic;
– Innovation strategy integrated into the business model (portfolio of 1410 patents), open and focused on: a unique and proprietary solution for the management and distribution of digital campaigns / the use of innovative technologies for the development of platforms – Data Solutions, OOH Planner, OOH Measurement, VIOOH / secure cloud-based infrastructures; ;
– Proactive environmental strategy, zero-emission activities in France from 2021: 100% electricity consumption from renewable energy, eco-design and circular economy, LED electricity consumption and intelligent lighting by modulation based on human presence;
– Strategic and capitalist alliance, with Displayce (Demand Side Platform) leader in programmatic solutions complete and combinable with DOOH inventories;
– Long-term contracts (15 years on average) that guarantee recurring revenue, independence from advertisers, the top 10 representing less than 13% of turnover and presence in 12 of the 15 cities that contribute most to the estimated global GDP 2030;
– Acceleration of digital growth (over 1/3 of revenues) driven by the implementation of the VIOHH programmatic sales platform, connected to 36 DSP platforms.
– Resistance to the continuous blockades in the main Chinese cities and to the global economic recession due to the Russia-Ukraine war;
– After the return of Urban Furniture activities to pre-Covid levels, waiting for the full recovery of the Transportation branch, still impacted by the confinements in China.
The growth of online advertising has slowed down
After a record year in 2021, advertisers are now more cautious. In the first quarter, online advertising recorded limited growth of 7% for Meta, the weakest level since its IPO in 2012. The former Facebook is particularly impressed with Apple’s new system that limits ad targeting. Indeed, applications in iPhones must now ask their users if their data can be shared with third parties for advertising purposes. According to an industry expert, Facebook, YouTube, Twitter and Snapchat’s deficits could approach $ 16 billion in 2022.