JCDecaux sees positive impact from Olympic advertising with 6.5 per cent revenue increase for 2012
Out of home advertising company JCDecaux saw a 6.5 per cent revenue increase to €2,622.8 million for 2012, it has announced.
For the fourth quarter of last year, the company saw revenue increase to €746.6 million, 4.3 per cent higher than the same period in 2011, while organic revenue grew by 0.2 per cent during the fourth quarter also.
Street furniture advertising declined in revenue for 2012 by 0.7 per cent at €1,179.0 million, while the use of transportation platforms increased by 15.7 per cent to €1,012.5 million and Billboards also saw revenue growth for the year of 7.3 per cent, at €439.0 million.
Geographically, JCDecaux across Europe saw a revenue decline of 4.2 per cent for the year at €759.6 million, however there was growth in France to €615.2 million (+1.2 per cent) and the UK to €316.7 million (+16.4).
North America also reported growth of 5.2 per cent to reach €188.5 million and Asia Pacific of 19.9 per cent reported growth to €604.6 million.
Jean-Charles Decaux, Co-CEO of JCDecaux, said: “Despite good resilience in France and a strong performance in the UK driven by the Olympics, the negative effect of the European recession continued to impact our organic growth. The excellent performance of our Transport division (now 39 per cent of our total revenues) which is strongly exposed to growth economies and digital displays, was somewhat offset by the impact on Street Furniture and Billboard of the contraction of many European economies, with Billboard being also affected by an increased pressure on price.
“2012 was also marked by a number of strategic developments such as the win of a 25-year contract for digital advertising clocks in São Paulo, the win of US's first large-scale digital billboard network contract with the City of Chicago and the projected acquisition of 25 per cent of Russ Outdoor, the largest outdoor advertising company in Russia. This demonstrates the consistency of the Group in pursuing its strategic goals and expanding its presence in large markets.”
Decaux added that the company was sure that the out-of-home sector would continue to be an attractive proposition within a fragmented marketplace.
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Every day millions of people interact with JCDecaux’s digital poster advertising sites in cities across the UK.
We help brands and clients reach and influence consumers, harnessing the latest Out-of-Home technology including programmatic to drive results through the marketing funnel. From the top 30 cities to the highest-indexing shopping malls, major rail hubs, iconic roadside poster sites and leading supermarkets and airports, our Out-of-Home advertising cuts through to audiences, making omnichannel campaigns work harder and creating a seamless experience for audiences in the online and real-life world.
Unlike other forms of media, Out-of-Home is inclusive, free-to-access and can’t be adblocked or avoided. Plus, when brands spend on Out-of-Home, nearly 50% of ad revenues go back into the community, funding valuable public services such as bus shelters and the provision of on-street defibrillators.
At the core of JCDecaux’s activity is our sustainability commitment - our extra-financial performance is rated well above the media industry average by leading international bodies including: CDP, Ecovadis, MSCI, FTSE4Good and Sustainalytics.