Covid-19 pushes JCDecaux revenue down in H1
Digital signage giant JCDecaux has reported a 41.6% year-on-year decline in adjusted revenue for the first half of 2020, as its business was hit by the novel coronavirus (Covid-19) pandemic.
Friday, 21 Aug 2020 08:32 GMT
Revenue was down across all business sectors and regions at JCDecaux in H1
Adjusted revenue for the six months through to June 30th amounted to €1.08bn (£976.6m/$1.28bn), down from €1.84bn in the same period last year.
JCDecaux saw declines across all business areas as its regional operations were hit by the Covid-19 crisis. Street furniture was its main source of income, but revenue here was down 39.3% year-on-year to €344.3m in H1.
Transport revenue slipped 45.6% from €777.0m to €423.0m, while billboard revenue was also down 37.2% from €274.7m to €172.6m for the period.
JCDecaux saw revenue fall across all regions in FH1 half. Asia-Pacific remained its biggest market, but revenue was 41.5% lower at €303.2m.
Europe revenue dropped 40.6% to €283.9m, French revenue fell 37.1% year-on-year to €108.2m, while UK revenue slipped 42.7% to €98.5m. JCDecaux also saw revenue in North America decline 39.8% to €92.5m.
Looking at costs, adjusted operating expenses were down from €1.54bn to €1.14bn, but after accounting for other costs, this left JCDecaux with an adjusted loss before interest and tax of €258.5m before impairment charges, compared to €202.9m in earnings in H1 2019.
Looking forward, the global advertising market remains highly volatile with low visibility”
When including a €60.6m impairment charge, this left JCDecaux with €319.2m in adjusted losses before interest and tax, a stark contrast to when it posted €206.0m in earnings last year.
Jean-Charles Decaux, chairman and co-chief executive of JCDecaux, says: “During the Covid-19 lockdown period, the temporary historic drop in urban and transport audiences as well as severe economic uncertainties led companies to react immediately and to reduce their advertising spend in an unprecedented scale.
“Once lockdown measures were lifted, urban audiences started to recover progressively in Street Furniture and in Billboard while Transport audiences are still lagging significantly, mainly in airports.
“Looking forward, the global advertising market remains highly volatile with low visibility.
“Considering the risk of new waves of Covid-19 and new local lockdowns being implemented, it remains very difficult to give a guidance for Q3 2020.”
If you have an interesting story or a view on this news, then please e-mail
news@signlink.co.uk
Follow Rob on:
