DGAP-News: Ströer Media AG: Ströer continues on its growth course in the second quarter
(firmenpresse) - DGAP-News: Ströer Media AG / Key word(s): Half Year Results/Quarter
Results
Ströer Media AG: Ströer continues on its growth course in the second
quarter
22.08.2013 / 07:04
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PRESS RELEASE
Ströer continues on its growth course in the second quarter
- Consolidated revenue up 8.1% to EUR 289.0m
- 5.0% organic growth
- Operational EBITDA increases by 16.2% to EUR 47.4m
- Another clear improvement in adjusted profit or loss for the period
Cologne, 22 August 2013 In the second quarter of 2013, Ströer Media AG
continued its positive performance from the first quarter, reporting clear
growth for the entire first six months of the year. The Group's revenue
rose by 8.1% year on year to EUR 289.0m. The upturn in business in Turkey
and Germany, which remain the Company's most important core markets,
contributed in particular to this trend. The main driver of Ströer's clear
growth was the fact that revenue in June exceeded expectations. Gross
profit increased by 8.9% to EUR 85.5m.
Non-organic revenue and profit contributions of EUR 9.5m from the new
Online segment were also reported for the first time in the second quarter
of 2013.
Operational EBITDA rose by 16.2% to EUR 47.4m, due to revenue growth and
further cost savings. The operational EBITDA margin therefore increased
from 15.3% to 16.4%. The loss for the period of EUR 1.4m in the first six
months of 2013 was higher than in the prior year (loss of EUR 0.2m).
While the result for the first half of 2012 reflected positive
extraordinary items within the financial result, the corresponding figure
for 2013 was shaped by sustained improvements in both the operating result
and the financial result. Accordingly, at EUR 9.8m, adjusted profit for the
period was again well in excess of the prior-year figure of EUR 2.9m.
Compared with the end of 2012, net debt rose by EUR 19.2m from EUR 302.1m
to EUR 321.4m in the first six months of 2013. The main reason for this
development was earn-out liabilities incurred in connection with business
combinations. Overall, this results in a leverage ratio of 2.8.
In the first half of 2013, Ströer scaled back its investments in
traditional out-of-home media and only invested selectively in specific
growth projects in Germany and abroad. This led to a 20.7% reduction in the
investment volume to EUR 16.2m (prior year: EUR 20.5m).
'We are extremely satisfied with the development in the first six months of
2013. We were able to build on the positive trend of the first quarter and
significantly increase our revenue,' said Udo Müller, CEO of Ströer. 'We
also laid additional, quite important foundations for our entry into the
online segment and already successfully internationalized our model. As
such, the second half of 2013 will be primarily shaped by the establishment
and expansion of our national and international online activities.'
Operating segments
Ströer Germany
In the first six months of 2013, the Ströer Germany segment increased its
revenue by EUR 6.3m compared with the respective prior-year period to EUR
204.8m. While bookings by our national customers increased slightly over
the first six months, our regional business remained on a growth
trajectory. The increase in revenue in the Ströer Germany segment was
accompanied by a rise in rental and lease expenses as well as running
costs. Higher electricity costs in particular had an adverse effect on
operational EBITDA, which increased only marginally by 0.4% to EUR 42.9m
(prior year: EUR 42.7m). In step with this change, the operational EBITDA
margin fell slightly to 21.0% (prior year: 21.5%).
The transport product group was again able to benefit from the substantial
growth in the digital segment, to which our Out-of-Home Channel made a
particularly significant contribution with its double-digit growth rates.
The proportion of segment revenue generated by digital formats rose to
around 9.8%.
Ströer Turkey
The Ströer Turkey segment continued its growth trajectory in the second
quarter of 2013. Segment revenue increased by 16.1% to EUR 49.2m in the
first half of 2013.
This was thanks to persistently high customer demand for the newly launched
premium products and the significant expansion of advertising media
capacity. The growth in segment revenue only contrasted with a higher cost
of sales in some cases. Overall, the higher revenue more than offset the
rise in costs, resulting in an improvement in operational EBITDA by more
than 100% and a rise in the operational EBITDA margin to 13.6% (prior year:
4.4%).
Online segment
The second quarter of 2013 saw the Ströer Group gradually enter the online
advertising business. As this business represents an important pillar of
the corporate strategy, Ströer is including it in a separate segment. The
new Online segment generated a revenue contribution of EUR 9.5m from
adscale GmbH, which was acquired in April (91%), and from Ströer Digital
Media GmbH, which has been wholly owned since June this year. To date, the
results have been in line with expectations; however, the contribution does
not reflect a full quarter due to the Group's gradual entry into the online
business. The integration of the newly acquired entities into the Ströer
Group is proceeding according to plan.
'Other' segment
The 'Other' segment includes Ströer's Polish out-of-home activities and the
western European giant poster business of the blowUP division.
Revenue in the Polish market in particular was hit hard by the still very
weak advertising market environment. However, in the blowUP sub-segment,
the signs of an upturn in business seen in the first quarter became more
visible in the reporting period.
Overall, segment revenue fell by 3.6% to EUR 25.7m.
All in all, however, there was an increase in operational EBITDA - partly
due to targeted cost savings - of more than 100% to EUR 1.5m (prior year:
0.4m). The EBITDA margin also proved robust and rose from 1.7% in the
prior-year period to 5.8% in the first six months of 2013.
Outlook
The trends we have observed during the second quarter seem to continue
throughout the third quarter. However, following a more quiet summer period
in our markets we are currently expecting an organic growth rate of around
1% for the third quarter 2013.
The Group's financial figures at a glance
In EUR m 6M 2013 6M 2012 Change1 Excluding exchange rate effects and effects from the (de-)consolidation
Revenue 289.0 267.4 8.1%
Ströer Germany 204.8 198.5 3.2%
Ströer Turkey 49.2 42.4 16.1%
Online 9.5 0.0 n.d.
Other 25.7 26.7 -3.6%
Billboard 142.9 140.6 1.6%
Street furniture 72.2 70.0 3.2%
Transport 46.2 40.5 14.1%
Online 9.5 0.0 n.d.
Other 18.2 16.3 11.6%
Organic growth1 5.0 -4.9
Gross profit2 85.5 78.5 8.9%
Operational EBITDA3 47.440.8 16.2%
Operational EBITDA margin3 16.4 15.3
Adjusted EBIT4 25.3 21.6 17.2%
Adjusted EBIT4 margin4 8.7 8.1
Adjusted profit or loss for the period5 9.8 2.9>+100%
Adjusted earnings per share (EUR)6 0.21 0.09>+100%
Profit or loss for the period7 -1.4 -0.2<-100%
Earnings per share (EUR)8 -0.05 0.01 n.d.
Investments9 16.2 20.5 -20.7%
Free cash flow10 -1.0 -12.1 91.6%
30 Jun 2013 31 Dec 2012 Change
Total equity and liabilities 940.1 863.7 8.8%
Equity 319.0 279.6 14.1%
Equity ratio 33.9 32.4
Net debt11 321.4 302.1 6.4%
Employees12 1,984 1,750 13.4%
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) plus the time-weighted addition of the shares from the capital
increase (6,771,546) on 3 June 2013
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) plus the time-weighted addition of the shares from the capital
increase (6,771,546) on 3 June 2013
9 Including cash paid for investments in property, plant and equipment and
in intangible assets
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)
Key financials of the segments
Ströer Germany
in EUR m Change ChangeStröer Turkey
6M 2013 6M 2012 in EUR m in %
Revenue 204.8 198.5 6.3 3.2%
Billboard 82.1 83.9 -1.7 -2.1%
Street furniture 59.8 59.2 0.6 1.0%
Transport 45.9 40.0 5.8 14.5%
Other 17.0 15.4 1.6 10.1%
up 8.0 percentage
Organic growth 3.2% -4.9% points
Operational EBITDA 42.9 42.7 0.2 0.4%
Operational EBITDA down 0.6 percentage
margin 21.0% 21.5% points
in EUR m Change ChangeOther
6M 2013 6M 2012 in EUR m in %
Revenue 49.2 42.4 6.8 16.1%
Billboard 36.9 31.6 5.4 17.0%
Street furniture 12.1 10.6 1.6 14.7%
Transport 0.1 0.1 0.0 -3.5%
Other 0.0 0.1 -0.1 -87.6%
Organic growth 19.2% -4.0% up 23.2 percentage
points
Operational EBITDA 6.7 1.8 4.9>100%
Operational EBITDA up 9.3 percentage
margin 13.6% 4.4% points
in EUR m Change ChangeNote: all figures are rounded
6M 2013 6M 2012 in EUR m in %
Revenue 25.7 26.7 -1.0 -3.6%
Billboard 23.8 25.1 -1.3 -5.3%
Street furniture 0.3 0.2 0.0 16.8%
Transport 0.3 0.4 -0.1 -28.2%
Other 1.4 0.9 0.4 47.3%
Organic growth -3.6% -7.1% down 3.5% percentage
points
Operational EBITDA 1.5 0.4 1.0>100%
Operational EBITDA up 4.1% percentage
margin 5.8% 1.7% points
About Ströer
Ströer Media AG is a leading provider of out-of-home and online
advertising, and offers its advertising customers individualized and fully
integrated premium communications solutions. In the field of digital media,
Ströer is setting new standards for innovation and quality in Europe and is
thus opening up new and innovative opportunities for targeted customer
contact for its advertisers.
The Ströer Group commercializes more than 280,000 out-of-home advertising
faces and several thousand websites. With consolidated revenue of EUR 560m
for the full year 2012, Ströer Media AG is one of largest providers of
out-of-home media in Europe in terms of revenue.
The Ströer Group has approximately 2,000 employees at over 70 locations.
For more information on the Company, please visit www.stroeer.de
Press contact
Marc Sausen
Head of Group Communication
Ströer Media AG
Ströer Allee 1 | D-50999 Cologne, Germany
Telephone: +49 (0) 2236 / 96 45-246
Fax: +49 (0) 2236 / 96 45-6246
Email: msausen(at)stroeer.de
IR Contact:
Stefan Hütwohl
Director Group Finance and Investor Relations
Ströer Media AG
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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22.08.2013 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.com
Internet: www.stroeer.de
ISIN: DE0007493991
WKN: 749399Indices: 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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226944 22.08.2013
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Datum: 22.08.2013 - 07:04 Uhr
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