JCDecaux reports strong 2024 results, sets ambitious 2026 targets

JCDecaux, the world's largest outdoor advertising company, reported significant financial growth for 2024, with revenue increasing by 10.2% to €3,935.3 million and organic growth of 9.7%. According to the figures released on March 6, 2025, the company achieved substantial improvements across all key financial indicators despite challenging macroeconomic and geopolitical environments.

The company's fourth quarter performance was particularly noteworthy, with organic revenue growth of 3.6%, reaching a new record high. This exceeded expectations, especially considering the absence of major sporting events during the period. Digital Out-of-Home (DOOH) continued to be the fastest-growing media segment, with revenue increasing by 21.9% in 2024 and now representing 39% of the group's total revenue.

Jean-Charles Decaux, Chairman of the Executive Board and Co-CEO of JCDecaux, stated: "2024 was a very robust year for JCDecaux in a challenging macroeconomic environment with geopolitical uncertainties. Thanks to our unique and geographically well diversified global OOH media footprint, we are reporting a strong organic revenue growth of +9.7%, including a record performance in Q4 despite the lack of recovery in China which remains well below 2019."

Digital and programmatic driving growth

Digital advertising continued to power JCDecaux's growth strategy in 2024. The segment saw organic revenue growth of 21.7%, with digital now representing 39% of total group revenue, reaching 42.9% in Q4. This marks an increase of nearly 5 percentage points compared to 2023.

Programmatic advertising revenues grew by 45.6% to €145.9 million, now accounting for 9.5% of digital revenue. The DOOH programmatic ecosystem continues to gain traction through VIOOH, the company's supply-side platform, which is now connected to 46 demand-side platforms across 24 countries.

"Digital Out-of-Home (DOOH), the fastest-growing media segment, grew by 21.9% with programmatic revenue growing by 45.6% and now represents 39% of our total revenue," Decaux added.

Profitability shows strong operating leverage

The company demonstrated strong operating leverage, with operating margin increasing by 15.3% to €764.5 million, outpacing revenue growth. The operating margin as a percentage of revenue was 19.4%, an improvement of 80 basis points compared to 2023.

EBIT grew by 44.8% to €408.7 million, driven by the growth in operating margin and a €45 million capital gain from the sale of part of JCDecaux's stake in APG|SGA. Excluding this transaction, the EBIT margin reached 9.0% of revenue, an increase of 150 basis points compared to 2023.

Net income group share rose 23.8% to €258.9 million. The company also reported solid free cash flow generation of €231.9 million, a significant improvement from the negative €1.0 million reported in 2023.

David Bourg, Chief Financial, IT & Administrative Officer, explained: "Our solid 2024 revenue momentum drove a significant increase across all our key financial aggregates. This improvement is coming from enhanced operating margin and the capital gain from the APG|SGA transaction."

Strategic diversification shows results

All business segments demonstrated growth in 2024, with Transport increasing by 13.1% organically, Street Furniture by 8.3%, and Billboard by 6.6%. Geographically, all regions contributed to growth, with the United Kingdom leading at 18.4% organic growth, followed by strong performances in Asia-Pacific (9.4%), France (9.5%), Rest of Europe (8.5%), and Rest of the World (8.8%).

The company's client portfolio remains highly diversified, with the top 10 clients accounting for less than 14% of group revenue. Six out of 10 top advertising categories grew by double digits in 2024, with the Fashion/Personal Care & Luxury Goods sector continuing to outperform the group average.

For China, which now represents approximately 10% of group revenue compared to 18% in 2019, JCDecaux has been implementing contract adjustments to reflect lower activity levels while increasing digitization efforts. Digital now represents 30% of revenue in China, up from 21% in 2023.

Financial strength and shareholder returns

JCDecaux's financial position strengthened considerably in 2024, with net debt decreasing by nearly 25% to €756.3 million, less than one year of the company's 2024 operating margin. The company maintained strong liquidity with nearly €1.3 billion in cash and an €825 million committed revolving credit facility.

Given these solid results, the company will propose a dividend of €0.55 per share at the Annual General Meeting on May 14, 2025. Jean-Charles Decaux noted: "Going forward, we intend to gradually increase this dividend while maintaining a balanced cash allocation with capex and bolt-on M&A."

ESG performance remains strong

The company confirmed its strong environmental, social, and governance (ESG) performance in 2024, maintaining its CDP A List status for the second consecutive year and EcoVadis Gold Medal status. The company's climate trajectory, aiming to achieve Net Zero Carbon by 2050, was approved by the Science Based Targets initiative (SBTi) in June 2024.

JCDecaux has reduced its greenhouse gas emissions (scopes 1, 2, 3 – market based) by nearly 30% in 2024 compared to 2019, with 100% of electricity consumption covered by renewable sources. The company's business model is well-aligned with climate challenges, as illustrated by the high share of revenue, nearly 50%, aligned with the European Green Taxonomy regulation.

Positive outlook for 2025 and beyond

Looking ahead, JCDecaux expects organic revenue growth of around 5% in Q1 2025, based on solid business momentum. For 2026, the company has set ambitious targets of an operating margin rate above 20% and free cash flow exceeding €300 million.

Jean-François Decaux, Co-CEO, pointed to the strong growth potential for Out-of-Home (OOH) advertising, which is expected to see a compound annual growth rate of 6.1% over the next five years according to GroupM forecasts. Digital OOH specifically is projected to grow at 8.2% CAGR, making it the fastest-growing media segment.

"We are building on this revenue momentum to target for 2026 an operating margin rate above 20% and a free cash flow above €300 million," stated Jean-Charles Decaux.

Industry context: OOH gaining market share

The out-of-home advertising sector continues to gain market share as traditional media formats decline. According to industry data, OOH's share of the advertising market has increased substantially in key markets such as Germany (from 5.5% in 2014 to 9.2% in 2024), Brazil (from 5.6% to 11.6%), and Australia (from 9.7% to 15.3%).

Air travel growth also presents significant opportunities for JCDecaux's transport division. According to OACI data from January 2025, air traffic increased by 9.2% in 2024, with a growth forecast of 6.1% for 2025. JCDecaux operates advertising in 157 airports worldwide, including 12 in the top 25, positioning it well to benefit from this trend.

Timeline

• March 6, 2025: JCDecaux announces full-year 2024 results showing 10.2% revenue growth to €3,935.3 million and 9.7% organic growth
• June 24, 2024: SBTi approves JCDecaux's climate trajectory aiming for Net Zero Carbon by 2050
• Q4 2024: Digital revenue reaches 42.9% of total group revenue, a new milestone
• 2024: Programmatic advertising revenues grow by 45.6% to €145.9 million
• 2024: Operating margin increases by 15.3% to €764.5 million
• 2024: Net income group share rises 23.8% to €258.9 million
• 2024: Free cash flow generation reaches €231.9 million
• 2024: Net debt decreases by 25% to €756.3 million
• 2024: Greenhouse gas emissions reduced by nearly 30% compared to 2019
• May 14, 2025 (Upcoming): Annual General Meeting where €0.55 per share dividend will be proposed