DGAP-News: Ströer Media AG: Positive business performance in the fourth quarter after a challenging year overall
(firmenpresse) - DGAP-News: Ströer Media AG / Key word(s): Final Results
Ströer Media AG: Positive business performance in the fourth quarter
after a challenging year overall
26.03.2013 / 07:09
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- Q4 revenues and operational EBITDA up on last year
- Consolidated revenue down 2.9% in 2012 to EUR 560.6m
- Operational EBITDA falls by 19.1% to EUR 107m
- Slight improvement in profit or loss for the period by EUR 1.8m
- Net debt reduced by EUR 2.1m
Cologne, 26 March 2013 Ströer Media AG pursued its growth strategy in
fiscal year 2012 by investing selectively in its core markets. With the
roll-out and expansion of the Out-of-Home Channel in train stations and
shopping malls in Germany, Ströer has created one of the world's largest
digital product offerings with a national reach. In Turkey, Ströer invested
in expanding its range of billboard products and was able to report
significant additional revenue already in the fourth quarter.
Overall, however, Ströer Media AG's operating result fell short of the
prior year due to challenging economic conditions and weaker media markets
in Ströer's core countries.
Against this background, consolidated revenue decreased by 2.9% from EUR
577.1m in the prior year to EUR 560.6m. Slight growth in Turkey was
contrasted by declining revenue in other segments. Adjusted for changes in
the investment portfolio and exchange rate effects, organic growth in the
Group was -4.0% (prior year: 4.8%).
This drop in revenue combined with an increase in the cost of sales reduced
operational EBITDA to EUR 107.0m (prior year: EUR 132.3m). As a result, the
operational EBITDA margin fell to 19.1% after 22.9% in the prior year.
Despite the decrease in the operating result, profit or loss for the period
advanced by EUR 1.8m due to improvements in the financial and tax result.
Nevertheless, the Group closed fiscal year 2012 with a loss of EUR 1.8m,
compared with a loss of EUR 3.6m in the prior year.
Net debt, another key performance indicator for the Group, declined
slightly overall by EUR 2.1m in the fiscal year to EUR 302.1m, as Ströer
was able to offset the reduction in its operating result on the cash flow
side. The leverage ratio (ratio between net debt and operational EBITDA)
increased slightly to 2.8 only due to the drop in EBITDA.
'2012 was a year of transition in which we enhanced our business through
targeted growth investments in Germany and abroad in view of the continuing
digitalization of the media landscape. The roll-out and expansion of our
Out-of-Home Channel in Germany's largest train stations and in ECE's
shopping malls has enabled us to set new standards in digital out-of-home
advertising,' said Udo Müller, CEO of Ströer. 'We have laid the foundation
for further growth. The importance of out-of-home advertising - whether
analog or digital - will steadily increase due to the digitalization of
media.'
In the past fiscal year, Ströer adjusted the pace of its investments to
reflect the challenging environment and invested selectively in specific
growth projects in Germany and abroad. The Group focused mainly on the
roll-out of more digital advertising media and premium billboards and is
seeing positive trends in the digital segment in particular. Overall,
Ströer reduced its investments by 18.1% to EUR 42.6m (prior year: EUR
52.0m).
Operating segments
Ströer Germany
Revenue in the Ströer Germany segment fell by EUR 15.7m to EUR 411.7m,
which meant that operational EBITDA decreased by EUR 17.8m year on year to
EUR 97.5m. Although higher lease payments and running costs were partly
offset by a slight decline in administrative expenses, the Group was unable
to prevent an overall reduction in both operational EBITDA and the
operational EBITDA margin, which fell to 23.7%.
By contrast, the regional business performed well. Revenue in the transport
product group was up by EUR 2.7m, primarily due to positive contributions
from the Out-of-Home Channel. Overall, the proportion of segment revenue
generated by digital media rose to 9.2% (prior year: 8.5%).
Ströer Turkey
The Ströer Turkey segment generated revenue of EUR 91.3m in fiscal year
2012, a slight increase of EUR 2.3m year on year. This was not only
attributable to positive exchange rate effects of EUR 1.4m in 2012, but
also to a clear improvement in business activities in the fourth quarter.
This growth contrasted with decreases in full year revenue of EUR 2.5m from
discontinued low-margin sales agreements. Adjusted for exchange rate
fluctuations and termination of such sales agreements, rannual evenue grew
by 2.7% on a like-for-like basis.
Despite the slight revenue growth, operational EBITDA in the Turkish
segment fell by EUR 7.5m to EUR 12.9m, primarily due to the higher cost of
sales resulting from increased lease payments under the new Istanbul
billboard contract. Overall, the operational EBITDA margin declined to
14.1%.
Other segment
The 'Other' segment includes Ströer's Polish out-of-home activities and the
western European giant poster business of the blowUP division. The segment
closed fiscal year 2012 with a EUR 1.3m decline in operational EBITDA to
EUR 4.4m and a drop in the operational EBITDA margin to 7.5%, which were
chiefly attributable to lower revenue in the markets. At -6.0%, the
segment's organic growth was significantly below the prior-year figure.
Outlook
The economic situation in the eurozone will remain uncertain this year.
Against this background, the advertising sector remains volatile and will
be shaped by short-term bookings by our customers. For the first quarter
2013, we expect to see a continuation of the positive momentum already
witnessed in the last quarter in Turkey and Germany and thus anticipate an
increase of the organic group revenue of +5%. In the second quarter we
expect to see - due to currently reluctant client bookings - a temporary
halt in the slight upward trend estimated for the full-year.
The Group's financial figures at a glance
In EUR m 2012 2011 Change(1) Excluding exchange rate effects and effects from the (de-)consolidation
Revenue 560.6 577.1 -2.9%
Ströer Germany 411.7 427.3 -3.7%
Ströer Turkey 91.3 89.0 2.6%
Other 57.9 61.4 -5.6%
Billboard 286.6 302.0 -5.1%
Street furniture 147.2 150.8 -2.4%
Transport 91.5 89.2 2.6%
Other 35.3 35.1 0.5%
Organic growth(1) -4.0 4.8
Gross profit(2) 174.1 205.0 -15.1%
Operational EBITDA(3) 107.0 132.3 -19.1%
Operational EBITDA(4) margin 19.1 22.9
Adjusted EBIT(4) 67.4 96.3-30.1%
Adjusted EBIT(5) margin 12.0 16.7
Adjusted profit or loss for the period(5) 24.0 40.3 -40.4%
Adjusted earnings per share (EUR)(6) 0.54 0.96 -43.5%
Profit or loss for the period(7) -1.8 -3.6 49.6%
Earnings per share (EUR)(8) -0.07 -0.08 12.7%
Investments(9) 42.6 52.0 -18.1%
Free cash flow(10) 10.8 38.0 -71.5%
31 Dec 2012 31 Dec 2011 Change
Total equity and liabilities 863.7 982.6 -12.1%
Equity 279.6 273.5 2.2%
Equity ratio 32.4 27.8
Net debt(11) 302.1 304.3 -0.7%
Employees(12) 1,750 1,730 1.2%
and discontinuation of operations
(2) Revenue less cost of sales
(3) Earnings before interest, taxes, depreciation and amortization adjusted
for exceptional items and effects from the phantom stock program which was
terminated as of the IPO
(4) Earnings before interest and taxes adjusted for exceptional items,
effects from the phantom stock program which was terminated as of the IPO,
amortization of acquired advertising concessions and impairment losses on
intangible assets
(5) Adjusted EBIT before non-controlling interests net of the financial
result adjusted for exceptional items and the normalized tax expense
(6) Adjusted profit or loss for the period net of reported non-controlling
interests divided by the number of shares outstanding after the IPO
(42,098,238)
(7) Profit or loss for the period before non-controlling interests
(8) Actual profit or loss for the period net of reported non-controlling
interests divided by the number of shares outstanding after the IPO
(42,098,238)
(9) Including cash paid for investments in property, plant and equipment
and in intangible assets but excluding cash paid for investments in
non-current financial assets and cash paid for the acquisition of
consolidated entities
(10) Cash flows from operating activities less cash flows from investing
activities
(11) Financial liabilities less derivative financial instruments and cash
(12) Headcount (full and part-time employees)
Financial figures of the segments
Ströer Germany
In EUR m Change ChangeStröer Turkey
2012 2011 in EUR m in %
Revenue 411.7 427.3 -15.6 -3.7%
Billboard 164.4 179.6 -15.2 -8.5%
Street furniture 123.4 127.2 -3.8 -3.0%
Transport 90.6 87.9 2.7 3.0%
Other 33.3 32.6 0.7 2.0%
Organic growth -4.5 6.2 -10.7% points
Operational EBITDA 97.5 115.3 -17.8 -15.4%
Operational EBITDA margin 23.7% 27.0% -3.3% points
In EUR m Change ChangeOther
2012 2011 in EUR m in %
Revenue 91.3 89.0 2.3 2.6%
Billboard 67.7 65.1 2.7 4.1%
Street furniture 23.2 23.0 0.1 0.6%
Transport 0.2 0.9 -0.7 -76.1%
Other 0.2 0 0.2 n/a
Organic growth -0.3 3.8% -4.1% points
Operational EBITDA 12.9 20.3 -7.5 -36.7%
Operational EBITDA margin 14.1% 22.8% -8.8% points
In EUR m Change ChangeNote: all figures are rounded
2012 2011 in EUR m in %
Revenue 57.9 61.4 -3.4 -5.6%
Billboard 54.5 57.3 -2.8 -4.8%
Street furniture 0.6 0.5 0.1 14.2%
Transport 0.7 0.4 0.3 68.4%
Other 2.1 3.2 -1.0 -32.5%
Organic growth -6.0% -3.6% -2.4% points
Operational EBITDA 4.4 5.7 1.3 -23.1%
Operational EBITDA margin 7.5% 9.3% -1.7% points
About Ströer
Ströer Media AG, Cologne, 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 560.6m for fiscal year 2012, is one of the leading
out-of-home advertising companies in Germany, Turkey and Poland. In terms
of revenue, Ströer is one of Europe's largest providers of out-of-home
advertising.
The advertising media portfolio of the Cologne-based SDAX-listed company
comprises digital moving-picture networks in Germany's largest train
stations, in underground and suburban railway stations and in the country's
largest shopping malls.
In addition, Ströer boasts a broad offering of out-of-home advertising
products that set new standards in terms of the quality, innovation and
design of advertising media and street furniture. Ströer's street furniture
has won 27 international awards. The Ströer Group has approximately 1,700
employees at over 70 locations.
For more information on the Company, please visit www.stroeer.de.
Press contact
Corporate Communications
Ströer Media AG
Ströer Allee 1 | D-50999 Cologne
Telephone: +49 (0) 2236 / 96 45-246
Fax: +49 (0) 2236 / 96 45-6246
Email: info(at)stroeer.de
Contact:
IR Contact:
Stefan Hütwohl
Ströer Media AG
Director Group Finance and Investor Relations
Ströer Allee 1 | D-50999 Cologne, Germany
Phone: +49 (0)2236 / 96 45-338
Fax: +49 (0)2236 / 96 45-6338
E-Mail: ir(at)stroeer.de
End of Corporate News
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26.03.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Ströer 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.comInternet: www.stroeer.de
ISIN: DE0007493991
WKN: 749399
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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205129 26.03.2013
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