JCDecaux Having Strong 2024, With Revenue Up 14% Overall But DOOH Up 28%

July 29, 2024 by Dave Haynes

The largest outdoor advertising company on the planet is seemingly having a happy 2024, with JCDecaux’s half-year results showing group revenue up 14%, with digital being a big driver of that success. DOOH revenues were up 28.3% (27.8% on an organic basis) and digital display is now 36.8% of group revenue, versus 32.7% for the same half-year period in 2023.

Overall, French-based JCDecaux says group revenue for the half year was €1,807.6 million, or just shy of $2 billion USD (if I am reading that right!)

The media giant says analog advertising revenue grew in the mid single-digits, even with the conversion of some premium analog sites to digital. We maintained our focus on the selective roll-out of digital screens in prime locations, as well as on the development of our data and programmatic capabilities. 

I didn’t really know what organic revenue growth means versus the main number, but it is explained this way: The Group’s organic growth corresponds to the adjusted revenue growth excluding foreign exchange impact and perimeter effect. The reference fiscal year remains unchanged regarding the reported figures, and the organic growth is calculated by converting the revenue of the current fiscal year at the average exchange rates of the previous year and taking into account the perimeter variations prorata temporis, but including revenue variations from the gains of new contracts and the losses of contracts previously held in our portfolio.

That paragraph just reinforces why I outsource my serious accounting work. I was hanging in there until it went Latin.

From the financial reporting …

Programmatic advertising revenues through the VIOOH SSP (supply-side platform), which include mostly incremental revenue from innovative dynamic data-driven campaigns and new advertisers, grew by +61.8% in H1 2024 to reach €59.7 million i.e. 9.0% of our digital revenue. The DOOH programmatic ecosystem continued to gain traction, with the dynamism and the growing number of DSPs (demand-side platforms) connected to VIOOH (the most connected SSP of the OOH media industry with 46 DSPs connected) now active in 21 countries, including Displayce a DSP connected in 80 countries.

All activities grew double-digit organically in H1 2024. Street Furniture grew by +10.6% with continued strong momentum, Transport grew by +18.8% reflecting the solid growth in both airports and public transport systems and Billboard grew by +10.4% driven by its most digitized markets.

All geographies grew positively organically in H1 2024 including Asia-Pacific, United Kingdom, Rest of Europe and Rest of the World growing double-digit. The gradual recovery of our activity in China, which remained well below pre-covid levels, continued with a double-digit organic revenue growth rate.

Our top 10 advertising categories are up mid-single to strong double-digit revenue growth led by FMCG and TMT advertisers.
Our adjusted operating margin demonstrated a good operating leverage as it has improved by €58.3 million to reach €261.4 million, a +28.7% year-on-year increase, twice the revenue growth rate. All activities improved their operating margin rates. Transport margin rate increased but remained affected by the lower level of activity in China. Billboard operating margin rate significantly improved driven by both our most digitized markets and the rationalization of our billboard activities in France. Our other P&L performance indicators improved accordingly. The sale of 13.56% of the shares of APG|SGA also had a positive impact on our EBIT and net result. Operating cash flows reached €138.9 million increasing by €24.5 million year-on-year, +21.5% compared to H1 2023, and our free cash flow improved significantly to reach a satisfactory level given the seasonality of our activity at -€20.1 million.

We have confirmed once again the excellence of our environmental performance, recognized as best-in-class by extra-financial rating agencies including our placement on the CDP A List. Our Climate Strategy aiming for Net Zero Carbon by 2050 (scopes 1, 2, and 3) has been approved by the SBTi.

As far as Q3 is concerned, we now expect an organic revenue growth rate around +10% driven by continued strong digital revenue growth across all business segments and including the positive impact of the Paris Olympic Games in France. 
We are confident that Out of Home (OOH) will continue to grow its market share in a fragmented media landscape with Digital Out of Home (DOOH) being the fastest growing media segment. JCDecaux as the industry leader and the most digitized global OOH Media company is well positioned to benefit from this digital transformation.”

The numbers also get into how street furniture (like totems on sidewalks) is about half of revenues, followed by mass transport and then billboards. Europe is the company’s biggest market and North America its smallest, at about $128 million.