DGAP-News: Ströer Media AG: Ströer continues on its growth path
(firmenpresse) - DGAP-News: Ströer Media AG / Key word(s): Quarter Results
Ströer Media AG: Ströer continues on its growth path
19.11.2013 / 07:00
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PRESS RELEASE
Ströer continues on its growth path
- Ströer builds on successful first half of the year
- Consolidated revenue up 10.5% to EUR 439.3m
- 4.8% organic growth
- Operational EBITDA increases by 15.8% to EUR 67.7m
- Another clear improvement in adjusted profit or loss for the period
Cologne, 19 November 2013 In the third quarter of 2013, Ströer Media AG
continued its positive performance from the first half of the year. In the
first nine months, revenue increased by 10.5% year on year to EUR 439.3m.
Once again, this was due to the upturn in business in Turkey and sustained
revenue growth from digital out-of-home products on the German market. The
Ströer Group also generated additional revenue of EUR 27.8m after
completing the acquisitions to build up its online advertising business.
Gross profit rose by 15.0% to EUR 127.5m.
Operational EBITDA again improved to EUR 67.7m - a significant increase on
the prior-year figure of EUR 58.5m. The operational EBITDA margin therefore
climbed from 14.7% to 15.4%. The loss for the period of EUR 7.1m in the
first nine months of the fiscal year was EUR 10.3m lower than the
prior-year figure (loss of EUR 17.4m). This is attributable to both the
positive trend in the Ströer Group's operating business and improvements
resulting from the optimization of the financing structure in the prior
year that was also driven by favorable interest rate trends on the capital
markets.
Accordingly, at EUR 13.1m, adjusted profit for the period was again well in
excess of the prior-year figure of EUR 2.8m.
In the traditional out-of-home media segment, Ströer invested selectively
in specific growth projects in Germany and abroad in the first nine months
of 2013. This led to an 11.4% reduction in the investment volume to EUR
26.6m (prior year: EUR 30.1m).
'We are extremely pleased with the current developments because they show
that our investments are paying off and that we are pursuing the right
strategy,' said Udo Müller, CEO of Ströer. 'The expansion of our
advertising media portfolio in Turkey is at last bearing the expected
fruit. Our acquisitions have also enabled us to drive forward our digital
strategy and establish ourselves as one of the key players in Germany's
online advertising market.'
Operating segments
Ströer Germany
In the first nine months of 2013, the Ströer Germany segment increased its
revenue by EUR 8.5m year on year to EUR 302.0m, with the regional customer
business continuing its upward trend from the prior quarters. Overall,
operational EBITDA improved slightly by EUR 1.8m year on year in the first
nine months of 2013 to EUR 62.8m, while the operational EBITDA margin was
on a par with the prior year at 20.8%.
In particular, the 'other' and 'transport' product groups lifted their
revenue significantly in the first nine months - the latter primarily due
to dynamic revenue growth from digital advertising media. The proportion of
segment revenue generated by digital formats totaled 9.3% at the end of the
first nine months.
Ströer Turkey
The Ströer Turkey segment again increased its revenue in the third quarter
of 2013. In the first nine months, segment revenue was up by a total of EUR
7.6m to EUR 70.5m. This consistently positive trend is mainly due to the
expansion of advertising media capacity in Istanbul and the launch of new
products as well as higher customer demand. The revenue growth was
accompanied by an increase in the cost of sales, although this was more
than offset. As a result, there were considerable year-on-year improvements
in both operational EBITDA from EUR 1.4m to EUR 7.8m and the operational
EBITDA margin from 2.3% to 11.1%.
Online segment
The Ströer Group has been gradually entering the online advertising
business since the second quarter of 2013. As this business represents an
important pillar of the corporate strategy, Ströer is including it in a
separate segment. The new Online segment performed in line with
expectations, contributing revenue of EUR 27.8m. In addition to the revenue
from adscale GmbH, 91% of which was acquired in April, and Ströer Digital
Media GmbH, which has been wholly owned since June, the third quarter saw
the first pro rata revenue contributions from the acquisition of the
location-based advertising segment of Servtag GmbH (Ströer Mobile Media)
and the Ballroom Group.
The integration of the newly acquired entities into the Ströer Group
remains on schedule.
'Other' segment
The 'Other' segment includes Ströer's Polish out-of-home activities and the
western European giant poster business of the blowUP division.
While revenue in Poland was impacted by sustained price pressure and
persistently low capacity utilization rates, blowUP's encouraging business
performance in the UK and Germany led to a considerable increase in its
revenue. Although segment revenue fell overall by 4.3% to EUR 39.5m,
operational EBITDA improved significantly (EUR 2.8m, up 84.2%) and the
operational EBITDA margin rose slightly (7.0%, up 3.4 percentage points)
due to the clear results of the cost-cutting program in Poland.
Outlook
For the fourth quarter of this year, we expect revenues in the out-of-home
segment to be flattish due to the comparably strong fourth quarter the year
before, while we expect increasing revenue contributions from the online
segment.
The Group's financial figures at a glance
In EUR m 9M 2013 9M 2012 Change(1)Excluding exchange rate effects and effects from the (de-)consolidation
Revenue 439.3 397.4 10.5%
Ströer Germany 302.0 293.4 2.9%
Ströer Turkey 70.5 62.9 12.1%
Online 27.8 0.0 n.d.
Other 39.5 41.2 -4.3%
Billboard 213.0 207.6 2.6%
Street furniture 102.8 102.7 0.2%
Transport 67.6 61.8 9.4%
Online 27.8 0.0 n.d.
Other 28.0 25.3 11.1%
Organic growth(1) 4.8 -5.1
Gross profit(2) 127.5 110.9 15.0%
Operational EBITDA(3) 67.7 58.5 15.8%
Operational EBITDA margin(3) 15.4 14.7
Adjusted EBIT(4) 35.2 29.3 20.2%
Adjusted EBIT margin(4) 8.0 7.4
Adjusted profit or loss for the period(5) 13.1 2.8>100%
Adjusted earnings per share(EUR) (6) 0.29 0.09>100%
Profit or loss for the period(7) -7.1 -17.4 59.4%
Earnings per share(EUR) (8) -0.16 -0.39 59.4%
Investments(9) 26.6 30.1 -11.4%
Free cash flow(10) -20.0 -7.5<-100%
30 Sep 2013 31 Dec 2012 Change
Total equity and liabilities 961.4 863.7 11.3%
Equity 293.3 279.6 4.9%
Equity ratio 30.5 32.4
Net debt(11) 339.8 302.1 12.5%
Employees(12) 2,206 1,750 26.1%
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
9M 2013 9M 2012 in EUR m in %
Revenue 302.0 293.4 8.5 2.9%
Billboard 123.5 122.7 0.8 0.7%
Street furniture 85.0 86.0 -1.0 -1.2%
Transport 67.1 61.2 6.0 9.8%
Other 26.4 23.7 2.8 11.6%
Organic growth 2.9% -5.2% up 8.1 percentage points
Operational EBITDA 62.8 61.0 1.8 3.0%
Operational EBITDA margin 20.8% 20.8% 0.0 percentage points
in EUR m Change ChangeOther
9M 2013 9M 2012 in EUR m in %
Revenue 70.5 62.9 7.6 12.1%
Billboard 52.9 46.3 6.6 14.3%
Street furniture 17.5 16.3 1.1 6.8%
Transport 0.1 0.1 0.0 -6.9%
Other 0.0 0.2 -0.1 -87.5%
Organic growth 19.5% -3.2% up 22.7 percentage
points
Operational EBITDA 7.8 1.4 6.4>100%
Operational EBITDA 11.1% 2.3% up 8.8 percentage
margin points
in EUR m Change ChangeNote: all figures are rounded
9M 2013 9M 2012 in EUR m in %
Revenue 39.5 41.2 -1.8 -4.3%
Billboard 36.6 38.7 -2.1 -5.3%
Street furniture0.4 0.4 0.1 14.7%
Transport 0.4 0.5 -0.2 -27.8%
Other 2.1 1.7 0.4 24.3%
Organic growth -3.2% -7.4% up 4.2% percentage
points
Operational EBITDA 2.8 1.5 1.3 84.2%
Operational EBITDA 7.0% 3.7% up 3.4% percentage
margin 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 2,200 employees at over 70 locations.
For more information on the Company, please visit www.stroeer.de
Press contact
Ströer Media AG
Marc Sausen
Head of Group Communication
Ströer Allee 1 D-50999 Köln
Telephone: +49 (0) 2236 / 96 45-246
Fax: +49 (0) 2236 / 96 45-6246
Email: msausen(at)stroeer.de
IR contact
Dafne Sanac
Ströer Media AG
Manager Investor Relations
Ströer Allee 1 D-50999 Cologne, Germany
Phone: +49 (0)2236 / 96 45-356
Fax: +49 (0)2236 / 96 45-6356
E-Mail: dsanac(at)stroeer.de
End of Corporate News
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19.11.2013 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: 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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240534 19.11.2013
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