JCDecaux announces strong 2023 results and positive outlook for Q1 2024

JCDecaux SE this week announced its audited and certified results for the year ended December 31st, 2023. JCDecaux is the number one outdoor advertising company worldwide, leading the industry in digital transformation. The company operates in over 80 countries with a focus on street furniture, transport, and billboard advertising.

JCDecaux's financial results demonstrate the rapid progress and significance of Digital Out of Home (DOOH) advertising within the company's portfolio. In 2023, DOOH revenue grew by an impressive +20.8%, reaching a record 35.3% of the Group's total revenue. This growth wasn't a one-time occurrence; DOOH has been steadily increasing its share of revenue, underscoring the strong demand from advertisers for this dynamic and targeted advertising medium.

The financial success of DOOH is partially attributable to its strong programmatic revenue growth as advertisers leverage its ability to deliver the right message at the right time to the right audience. Programmatic buying allows for greater flexibility and efficiency within campaigns. Furthermore, digital advertising is not only expanding in terms of revenue but also enhancing operating margins within JCDecaux's billboard segment, demonstrating the positive impact DOOH has on overall profitability.

Key Financial Highlights:

• Revenue: Increased by +7.6% year-on-year to €3.57 billion (€3.32 billion in 2022)
• Organic Revenue Growth: +8.7% year-on-year
• Operating Margin: Improved by +10% to €663.1 million (€602.9 in 2022)
• Net Income Group Share: Increased by +58.3% to €209.2 million (€132.1 million in 2022)
• Strong Operating Cash Flows: €478.5 million, up +19.8%
• Free Cash Flow Nearly breakeven at -€1.0 million

Growth Drivers:

• Significant growth in digital Out of Home (DOOH), now at 35.3% of revenue
• Robust street furniture sector benefiting from full recovery
• Gradual recovery in transport advertising

Q1 2024 Outlook:

JCDecaux anticipates an organic revenue growth rate of around +9%. This forecast includes strong digital growth and further improvement across transport and street furniture segments.

Management Comments:

"“Our 2023 Group revenue grew by +7.6%, +8.7% on an organic basis, to reach €3,570.0 million driven by digital, the continued growth of street furniture and the ongoing recovery of our transport activities. Our Digital Out Of Home (DOOH) revenue grew by +20.8% in full-year 2023, +22.7% on an organic basis, to reach a record 35.3% of Group revenue in 2023 with a strong programmatic revenue growth while analogue advertising revenue also grew in 2023 despite the conversion of some premium analogue sites to digital." – Jean-François Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux.

JCDecaux will propose at the Annual General Meeting on May 7th, 2024, not to pay any dividend in 2024 to maintain financial flexibility for future growth investments.