Selected financial information for JCDecaux from their press release.
Paris, July 27th, 2023 – JCDecaux SE (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announced today its 2023 half-year financial results.
Commenting on the 2023 first half-year results, Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
“Our H1 2023 group revenue grew by +7.5%, +7.8% on an organic basis, to reach €1,585.0 million, including a Q2 at +10.3% on an organic basis, above our expectations, thanks to a good trading momentum in most geographies including a gradual recovery in China. This performance has been driven by the strong growth of digital, the ongoing recovery of our transport activities and by the continued growth of street furniture, above pre-Covid revenue levels in H1.
Digital Out of Home (DOOH) grew strongly at +17.1% in H1 2023, +18.0% on an organic basis, to reach 32.7% of Group revenue vs 30.0% in H1 2022. We maintained our focus on the selective roll-out of digital screens in prime locations, as well as on the development of our data capabilities. Programmatic advertising revenues through the VIOOH SSP (supply-side platform), which constitute mostly incremental revenue from innovative dynamic data-driven campaigns and new advertisers, grew by +63,3% in H1 2023 to reach €36.9 million i.e. 7.1% of our digital revenue in half-year 2023 as the DOOH programmatic ecosystem, including Displayce following our strategic alliance announced in July 2022, continued to gain traction.
By activity, Street Furniture grew by +3.8% organically in H1 2023 and was above H1 2019 levels globally; Billboard decreased by -0.5% organically in H1 2023, but was above 2019 in Asia-Pacific and North America; Transport grew at +19.0% reflecting the strong return of air travel already above 90% of pre-Covid level globally but remained significantly below 2019 revenue levels impacted by lower international air traffic in Asia and especially in China which is also affected by the non-renewal of the metro and airport contracts in Guangzhou.
All geographies grew positively in H1 2023 including Asia-Pacific and Rest of the World growing double-digit on the back of the strong recovery of mobility in both regions. France, Rest of Europe and Rest of the World were close to 2019 revenue levels, while Asia remained still significantly behind mainly due to China.
Our adjusted operating margin has improved by €19.6m to reach €203.1 million, representing a year-on-year increase of +10.7%. This positive operating leverage despite inflationary pressures on costs was driven by our street furniture division benefiting from both a full revenue recovery and some contract renegotiations while our transport and traditional billboard business are still affected by a slower pace of recovery especially in China. Our other P&L performance indicators improved accordingly including benefits from some contract renegotiations. Our free cash flow has been impacted by one-off deferred rental payments following the contract renegotiations, while we delivered positive operating cash flows of €114.3 million increasing by €33.6 million, +41.6% compared to H1 2022.
Our growth strategy continues to be driven by both organic contract wins such as the largest OOH/DOOH media franchise in Norway and bolt-on acquisitions which included in Q2 the activities of Clear Channel in Italy and Spain.
ADJUSTED REVENUE
Adjusted revenue for the six months ending June 30th, 2023 increased by 7.5% to €1,585.0 million from €1,474.8 million in the same period last year. On an organic basis (i.e. excluding the negative impact of €20.3 million from foreign exchange variations and the positive impact of €15 million from changes in perimeter this semester), adjusted revenue increased by 7.8%. Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by 7.4% on an organic basis in the first half of 2023.
In the second quarter, adjusted revenue increased by 9.1% to €863.7 million. On an organic basis, adjusted revenue increased by 10.3% compared to Q2 2022.
Adjusted advertising revenue, excluding revenue related to sale, rental and maintenance of street furniture and advertising displays, increased by 10.1% on an organic basis in Q2 2023.
Adjusted revenue
| €m | H1 2023 | H1 2022 | Change 23/22 | ||||||
| Q1 | Q2 | H1 | Q1 | Q2 | H1 | Q1 | Q2 | H1 | |
| Street Furniture | 364.3 | 458.3 | 822.6 | 347.5 | 441.8 | 789.4 | 4.8% | 3.7% | +4.2% |
| Transport | 254.0 | 282.7 | 536.7 | 234.9 | 224.2 | 459.0 | 8.1% | 26.1% | +16.9% |
| Billboard | 103.0 | 122.7 | 225.7 | 100.6 | 125.8 | 226.4 | 2.4% | -2.5% | -0.3% |
| Total | 721.3 | 863.7 | 1,585.0 | 683.0 | 791.8 | 1,474.8 | 5.6% | 9.1% | +7.5% |
Adjusted revenue by geographic area
| €m | H1 2023 | H1 2022 | Reported growth | Organic growth(a) |
| Europe(b) | 470.4 | 448.5 | +4.9% | +5.0% |
| Asia-Pacific | 348.3 | 317.4 | +9.7% | +14.0% |
| France | 291.6 | 278.5 | +4.7% | +1.9% |
| Rest of the World | 205.5 | 170.8 | +20.3% | +19.5% |
| United Kingdom | 146.5 | 143.4 | +2.2% | +6.4% |
| North America | 122.6 | 116.2 | +5.5% | +1.0% |
| Total | 1,585.0 | 1,474.8 | +7.5% | +7.8% |
(a) Excluding acquisitions/divestitures and the impact of foreign exchange
(b) Excluding France and the United Kingdom
BILLBOARD
First half adjusted revenue decreased by -0.3% to €225.7 million (-0.5% on an organic basis). North America, Asia-Pacific, Rest of Europe and Rest of the World grew positively. Asia-Pacific and North America were above 2019 revenue levels.
In the second quarter, adjusted revenue decreased by -2.5% to €122.7 million (-1.7% on an organic basis). North America recorded the strongest growth rate followed by Rest of the World, UK virtually flat while France was decreasing.
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