JCDecaux cites ‘very strong’ digital for 18.7% revenue growth

JCDecaux pledges financial support for Ukraine as it posts double-digit revenue bump

JCDecaux has posted a strong set of annual results, with revenues rising 18.7% on the back of ‘very strong’ digital growth. The digital out-of-home (DOOH) category surged 33.2% over the year to account for a record-setting 26.9% share of group revenue.

The bumper results are attributed to a focus on the rollout of digital screens and the development of automated data-driven planning and trading solutions.

Internet companies played a large role in the recovery, increasing their collective spending by 69.4% to account for 7.3% of total revenue. Fashion, personal care and luxury goods are the outdoor specialist’s biggest category, accounting for 15% of total revenue – just ahead of retail on 14.6%.

Jean-François Decaux, chairman of the executive board and co-chief executive officer of JCDecaux, said: “With revenue growing by €432.8m in 2021, our adjusted operating margin has reached €422.3m – improving by €280.6m – reflecting a strong operating leverage thanks to a revenue mix geared toward the higher-margin street furniture business segment, our ongoing strict cost control and some rent relieves in line with the revenue shortfall linked to Covid-19 restrictions.

“Although improving by €590m year-on-year, our net result group share is still slightly negative at -€14.5m.”

Looking ahead to the first quarter of 2022, JCDecaux anticipates revenue growth of over 40%, with digital growth maintaining a blistering pace of expansion while analog growth remains “robust.”

The Paris-based OOH advertising giant issued its results alongside a note concerning the developing situation in Ukraine, including a pledge by the executive board to provide financial and other support to the country and employees of its BigBoard joint venture.

In regards to Russia, JCDecaux affirmed that it had no exposure since the sale of its 25% stake in Russ Outdoor in 2020, sparing it from joining the exodus of western businesses. Ukrainian revenues accounted for 0.1% of total revenues in the fourth quarter.