DGAP-News: Ströer Out-of-Home Media AG: Ströer on stable growth course in the first six months
(firmenpresse) - DGAP-News: Ströer Out-of-Home Media AG / Key word(s): Half Year
Results
Ströer Out-of-Home Media AG: Ströer on stable growth course in the
first six months
16.08.2011 / 07:02
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PRESS RELEASE
Ströer on stable growth course in the first six months
- Consolidated revenue up 16.6% to EUR 282.3m
- Consolidated organic growth of 7.3%
- Growth spurt due to Ströer Germany with organic revenue up 8.8%
- Group operational EBITDA at EUR 59.8m with a margin of 21.2%
- Positive free cash flow despite high investments in planned growth
projects
- Expected organic revenue growth of the Group of around 3% in third
quarter
- Forecast for full year confirmed: organic revenue growth for the Group
in mid to high single-digit percent range, but with a tendency toward
the lower end of the corridor
Cologne, 16 August 2011 Ströer Out-of-Home Media AG, one of Europe's
leading providers of out-of-home advertising based in Cologne, continued to
enjoy stable growth in the first six months of 2011. Organic growth came to
7.3% (H1 2010: 10.0%). Total revenue of the Ströer Group increased by 16.6%
to EUR 282.3m (H1 2010: EUR 242.2m). The Group's operational EBITDA grew by
14.0% to EUR 59.8m (H1 2010: EUR 52.4m) in the same period, despite adverse
market impacts in Turkey.
'We are still one of the strongest growing media companies in Europe.
Premium products in Germany and increased demand from the top 200
advertisers contributed in particular to this positive performance,' said
Udo Müller, CEO of the Ströer Group, today in Cologne.
Operating segments
Ströer Germany
The Ströer Germany segment continued on its strong growth course in the
first six months. While revenue grew considerably by 6.6% to EUR 207.8m (H1
2010: EUR 194.9m), organic growth even amounted to 8.8%. Operational EBITDA
increased at an above-average rate, up 13.2% to EUR 54.6m (H1 2010: EUR
48.2m). The operational EBITDA margin rose 1.5 percentage points to 26.3%.
Key growth drivers were the uptake in bookings of high-margin premium
products and the growing share in sales of digital out-of-home products.
Both product offerings have been particularly well received by the top 200
advertisers.
Ströer Turkey
Organic growth was up 6.3% in the Ströer Turkey segment in the first six
months even though the parliamentary elections held in June and the new
regulations on TV advertising led to considerable delays in bookings by
advertising customers. Revenue shot up by 91.4% and came in at EUR 44.9m
(H1 2010: EUR 23.5m). This development was mainly due the full
consolidation of Ströer Turkey. Operational EBITDA increased by 28% to EUR
8.1m in the same period. Launching costs related to the set up of new
advertising capacities impacted the EBITDA margin, which was down 8.9
percentage points compared to the previous year value of 26.9%.
Other segment
In the 'Other' segment, which comprises the Western European giant poster
activities of the blowUP division as well as our Polish activities, revenue
rose 25.1% to EUR 29.8m (H1 2010: EUR 23.8m) in the first half of the year,
mainly due to consolidation effects. Operational EBITDA climbed 62.3% to
EUR 2.2m (H1 2010: EUR 1.4m). The operational EBITDA margin improved by1.7
percentage points to 7.5% in the first six months, backed by both business
divisions. However, organic growth decreased by 3.3%. Negative organic
growth in the Polish market in particular impacted this result.
Product groups
The Ströer Group's consolidated revenue from the billboards product group
was up 21.4% to EUR 152.1m in the first six months (H1 2010: EUR 125.3m).
The reasons for this were primarily adjustments in the scope of
consolidation of the Turkish and Polish activities.
The street furniture product group benefited from improved sales volume and
recorded a considerable growth of 22.3% to EUR 72.8m (H1 2010: EUR 59.5m).
The Ströer Germany segment contributed EUR 61.5m (H1 2010: EUR 51.8m) to
these activities and reported a corresponding increase of 18.8%.
Revenue from transport media grew by 19.4% to EUR 40.9m in the first six
months (H1 2010: EUR 34.3m). This can largely be attributed to the increase
in revenue from digital advertising faces in Germany. Overall, the
transport media product group at Ströer Germany soared by 19.6%, or EUR
6.6m, to EUR 40.1m (H1 2010: EUR 33.6m).
On 1 April, the initial set-up phase for the Out-of-Home-Channel involving
the installation of 500 screens was successfully completed. Screens were
set up at central train stations such as in Berlin, Munich, Stuttgart and
Frankfurt am Main. At the same time, this world unique digital network is
incorporated into the regular sales activities. The set-up of the
Out-of-Home-Channel is on schedule and due for completion by the end of
this year, when the network will comprise about 1,000 screens in the 200
largest train stations in Germany.
Ströer Out-of-Home Media AG also kicked off its second growth project in
Germany with its premium billboards on 1 January. By the end of 2015, up to
5,000 high-quality advertising media with changing mechanisms will be
installed at top sites as part of the quality and capacity upgrade
campaign.
Forecast
Ströer expects the macroeconomic development in its core markets to be
slower in the second half of 2011. While the Company remains confident of
achieving the forecast of mid to high single-digit organic growth for the
Group for the year as a whole, it now assumes performance will be at the
lower end of this corridor due to the changed macroeconomic situation. For
the third quarter of 2011, Ströer expects organic revenue growth for the
Group to be around 3%.
The Ströer Group's Board of Management will continue on its strategic
course even in this phase and sees the growth projects through as planned,
even though, in the short term, this may make it more difficult to achieve
an operating margin on a par with the prior year. However, the Company
expects that these initiatives will generate significant earnings
contributions from as early as 2012 and continues to anticipate a positive
medium-term performance as a result.
The Group's financial figures at a glance
In EUR m H1 2011 H1 2010 ChangeKey financials by segment
Revenue 282.3 242.2 16.6%
Ströer Germany 207.8 194.9 6.6%
Ströer Turkey 44.9 23.5 91.4%
Other 29.8 23.8 25.1%
Billboard 152.1 125.3 21.4%
Street furniture 72.8 59.5 22.3%
Transport 40.9 34.3 19.4%
Other 16.5 23.1 -28.6%
Organic growth 7.3% 10.0% -27.4%
Gross profit 100.6 93.2 7.9%
Operational EBITDA 59.8 52.4 14.0%
Operational EBITDA3 margin 21.2% 21.6%
Adjusted EBIT 42.6 39.5 7.9%
Adjusted EBIT4 margin15.1% 16.3%
Adjusted profit for the period 16.5 11.7 41.0%
Adjusted earnings per share (EUR) 0.39 0.28
Profit or loss for the period -1.2 -5.2 n.d.
Earnings per share (EUR) -0.03 -0.12
Investments 22.5 6.6>100%
Free cash flow 1.7 3.2 -46.3%
30 Jun 2011 31 Dec 2010 Change
Total equity and liabilities 975.1 987.1 -1.2%
Equity 280.6 294.4 -4.7%
Equity ratio 28.8% 29.8%
Net debt 319.3 320.1 -0.2%
Employees 1,734 1,731 0.1%
Ströer Germany
In EUR m Change ChangeStröer Turkey
H1 2011 H1 2010 in EUR m in %
Revenue 207.8 194.9 12.9 6.6%
Billboard 91.0 87.8 3.1 3.6%
Street furniture 61.5 51.8 9.7 18.8%
Transport 40.1 33.6 6.6 19.6%
Other 15.2 21.8 -6.6 -30.1%
Organic growth 8.8% 7.8% 12.6%
Operational EBITDA 54.6 48.2 6.4 13.2%
Operational EBITDA up 1.5 percentage
margin 26.3% 24.7% points
In EUR m Change ChangeOther
H1 2011 H1 2010 in EUR m in %
Revenue 44.9 23.5 21.5 91.4%
Billboard 33.3 15.5 17.8 114.7%
Street furniture 11.0 7.5 3.5 46.2%
Transport 0.6 0.5 0.2 40.9%
Organic growth 6.3% 40.1% -84.2%
Operational EBITDA 8.1 6.3 1.8 28.0%
Operational EBITDA down 8.9 percentage
margin 18.0% 26.9% points
In EUR m Change ChangeAbout Ströer
H1 2011 H1 2010 in EUR m in %
Revenue 29.8 23.8 6.0 25.1%
Billboard 27.8 21.9 5.9 26.7%
Street furniture 0.3 0.2 0.1 30.6%
Transport 0.2 0.3 -0.1 -40.6%
Other 1.5 1.4 0.2 11.6%
Organic growth -3.3% 6.1% n.d
Operational EBITDA 2.2 1.4 0.9 62.3%
Operational EBITDA up 1.7 percentage
margin 7.5% 5.8% points
Ströer Out-of-Home Media AG, together with its subsidiaries, specializes in
all forms of out-of-home advertising media, from traditional posters and
advertising at bus and tram stop shelters and on vehicles, through to
sophisticated digital out-of-home advertising media. The Group
commercializes more than 280,000 advertising faces and, with consolidated
revenue of EUR 531.3m for fiscal year 2010, is the market leader in
Germany, Turkey and Poland and one of Europe's leading out-of-home
advertisers. The Company provides its customers with extensive networks for
national advertising campaigns and has been establishing the world's
largest network of out-of-home moving images with national reach since
December 2010. By the end of 2011, 1,000 high-quality screens at the 200
most highly frequented train stations will be linked up and controlled and
operated centrally from Munich. In addition, Ströer boasts a broad
portfolio of out-of-home products and sets new standards in terms of the
quality, innovation and design of advertising media and street furniture.
Ströer's street furniture has received 27 international awards. The Ströer
Group has approximately 1,700 employees at over 60 locations.
For more information on the Company, please visit www.stroeer.com.
Press contact:End of Corporate News
Claudia Fasse
Ströer Out-of-Home Media AG
Director Group Communication
Ströer Allee 1
50999 Cologne, Germany
Phone: 02236 / 96 45-246
Fax: 02236 / 96 45-6246
E-mail: cfasse(at)stroeer.de
IR contact:
Stefan Hütwohl
Ströer Out-of-Home Media AG
Director Group Finance and Investor Relations
Ströer Allee 1,
50999 Cologne, Germany
Phone: 02236 / 96 45-338
Fax: 02236 / 96 45-6338
E-mail: ir(at)stroeer.de
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16.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: Ströer Out-of-Home Media AG
Ströer Allee 1
50999 Köln
Germany
Phone: +49 (0)2236.96 45 0
Fax: +49 (0)2236.96 45 299
E-mail: info(at)stroeer.com
Internet: www.stroeer.de
ISIN: DE0007493991
WKN: 749399
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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135770 16.08.2011
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