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JCDecaux SA’s adjusted revenue down -41.6% to €1,075.4 million
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Adjusted organic revenue down -40.8%, with Q2 at -63.4%
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Adjusted operating margin of -€61.8 million
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Adjusted EBIT, before impairment charge, of -€258.5 million
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Net income Group share of -€254.9 million, including an impairment charge of €55.9 million
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The positive adjusted free cash flow of €69.5 million (vs. -€7.8m in H1 2019)
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No quarterly guidance on adjusted organic revenue growth provided in 2020 due to Covid-19
JCDecaux SA the number one outdoor advertising company worldwide, announced today its 2020 half-year financial results.
Following the adoptions of IFRS 11 from January 1*t, 2014 and IFRS 16 from January 1s*, 2019, and in compliance with the AMF’s instructions, the operating data presented below are adjusted:
- to include our pro-rata share in companies under joint control, regarding IFRS 11,
- to exclude the impact of IFRS 16 on our core business lease agreements (lease agreements of locations for advertising structures excluding real estate and vehicle rental contracts).
The values shown in the tables are generally expressed in millions of euros. The sum of the rounded amounts or variations calculations may differ, albeit to an insignificant extent, from the reported values.
Commenting on the 2020 first half-year results, Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, said:
“During the Covid-19 lockdown period, the temporary historic drop in urban and transport audiences, as well as severe economic uncertainties, led companies to react immediately and to reduce their advertising spend on an unprecedented scale. Once lockdown measures were lifted, urban audiences started to recover progressively in Street Furniture and in Billboard while Transport audiences are still lagging significantly, mainly in airports.
Advertising revenue has, for the time being, not followed the same pace of recovery and we see an important difference between audiences’ levels, which are in some geographies close to pre-COVID-19, and revenue levels which do not yet reflect the positive momentum in urban audiences.
Our Group revenue declined by €766.9 million reaching €1,075.4 million with a decrease in adjusted organic revenue at -40.8%, mainly in Q2 2020 (-63.4%). Our H1 2020 operating margin reducing significantly to -€61.8 million. While the Group started the year positively, mainly in Street Furniture (up +3.9% by the end of February), the performance was hardly hit by the Covid-19 outbreak from March onwards. Immediate and dedicated action was taken on operating and financial levers to mitigate this decline and save cash, including but not limited to rent reliefs, severe cost management, reduced capital investment, tight control over the working capital requirement and dividend cancellation.
Our digital revenue now represents 24.0% of Group revenue, up +10bp for the same period last year. After a solid Q1 2020 performance digital revenue declined in Q2 2020, to post for H1 2020 a -41.3% decline.
We have further reinforced our global leading position by completing the acquisition of a minority stake in Clear Media Limited as a pad of a consortium of investors (including Han Zi Jing, Chief Executive Officer of Clear Media, Antfin (Hong Kong) Holding Limited and China Wealth Growth.