French display giant JCDecaux reduced its net loss in the first half to 161.3 million euros, against 254.9 million at the height of the Covid-19 pandemic, and expects growth of more than 20 % in the third quarter of its activity, started to rise again in the first half.
In the first six months of the year, turnover increased by 2.69% to 994.4 million euros.
Read also: JCDecaux had the worst year in its history in 2020
While the first quarter was strongly impacted by significant mobility restrictions around the world, in the second quarter our Street Furniture and Billboard activities experienced a strong rebound with the return of significant audience levels in the city as a result. the gradual lifting of containment measures
, ”commented the Chairman of the Management Board and Co-CEO Jean-François Decaux. According to him, the second quarter was “
better than expected, with + 80.2% organic growth (at constant scope and exchange rates, Editor's note) thanks to a strong recovery in street furniture activity in all our regions and more particularly in Europe.
On the other hand, the activity of advertising in the places of transport, in particular the airports, remains very affected because of an “
almost non-existent international air traffic
”, except in China where it shows a “
” thanks to the return normal domestic air traffic.
JCDecaux now forecasts growth in its adjusted organic turnover (the group's preferred indicator) for the third quarter of more than + 20%, “
provided that mobility restrictions are not significantly tightened
We consider that we are well placed to benefit from the rebound,
" said Jean-François Decaux, quoted in the press release. But the global health situation "
does not allow us to be completely serene about the confinements that could be established in the coming months
", commented his brother and co-director general Jean-Charles Decaux, during an audio conference.
Over the half year, the group, which sharply reduced its costs compared to the pre-crisis period and eliminated dividends for the second consecutive year, maintained its net debt "
almost stable over one year at around 1.2 billion euros at the end of June 2021
In detail and at constant data, the Street furniture activity grew by 17.2% over the first half, while the Transport and Billboard activities fell by 16.5% and 10.9% respectively.
The adjusted operating margin is again positive (+31.4 million euros) without however being enough to return in the green at the level of the operating profit, because of the fixed assets, explained the group.
The price of the company fell at the opening of the Paris Stock Exchange, from 2.3% to 23.5 euros.