DGAP-News: Ströer Group reports double-digit growth in the first nine months of 2010
(firmenpresse) - Ströer Out-of-Home Media AG / Key word(s): Quarter Results
30.11.2010 07:00
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Cologne, 30 November 2010
Ströer Group reports double-digit growth in the first nine months of 2010
Outlook for full year 2010 confirmed
- Revenue up 12.2% in the first nine months of 2010
- Increase in profitability: Operational EBITDA up 24.9%
- Net debt down significantly and capital structure optimized
- Stake increased in the Turkish entity Ströer Kentvizyon and acquisition
of News Outdoor Poland complete
- Launch of first nationwide network of digital out-of-home media in
Germany
Ströer Out-of-Home Media AG (Ströer), one of Europe's leading providers of
out-of-home advertising based in Cologne, looks back on a solid performance
in the first nine months of the year. Consolidated revenue was up 12.2% to
EUR 369.1m (prior year: EUR 328.9m) at the end of September and the Group's
operational EBITDA (earnings before interest, taxes, depreciation and
amortization adjusted for exceptional items) reported above average growth,
climbing 24.9% to EUR 74.8m (prior year: EUR 59.9m).
'We are extremely pleased with our performance. We used some of the IPO
proceeds from July as planned to build on our market presence in Poland and
Turkey and drive forward our leading market positions. We also reduced our
net debt considerably. This puts us in a position to accelerate our growth
course and boost our business value,' said Udo Müller, co-founder and CEO
of the Ströer Group, today in Cologne.
If the Turkish joint venture Ströer Kentvizyon had been fully consolidated
since 2009, consolidated revenue would have increased 13.4% year on year to
EUR 399.8m in the first nine months of the fiscal year. On the same basis,
consolidated organic growth would have stood at 11.4% in the third quarter
and the Group's operational EBITDA (earnings before interest, taxes,
depreciation and amortization adjusted for exceptional items) would have
risen by 25.2% to EUR 81.7m (prior year: EUR 65.3m). The equity interest in
Ströer Kentvizyon was increased from 50% to 90% on 2 September 2010. The
Turkish operations have since been included in full in the consolidated
financial statements of the Ströer Group.
The Group's net assets and financial position improved significantly in the
third quarter thanks to the EUR 287.8m capital injection from the IPO
(before transaction costs). At EUR 301.4m, net debt was down considerably
as of 30 September 2010 (31 December 2009: EUR 495.4m). Profit adjusted for
exceptional items in the first nine months of 2010 rose to EUR 13.2m
compared with EUR 1.5m in the same prior-year period. Cash flows from
operating activities, adjusted for the special effects from the IPO and the
acquisitions, rose to EUR 32.8m, reflecting the Group's much improved
results of operations.
Operating segments and growth initiatives
The consolidated financial statements of the Ströer Group show a
significant increase in revenue in the core markets of Germany, Turkey and
Poland in the first nine months of 2010 compared with the prior-year
period. With a revenue contribution of EUR 40.0m (prior year: EUR 23.7m)
and a growth rate of 68.7%, the Turkish operations made a particularly
strong contribution in this period. Operational EBITDA climbed 67.4% to EUR
9.0m (prior year: EUR 5.4m).
The largest segment, Ströer Germany, saw its revenue increase 6.9% to EUR
293.1m (prior year: EUR 274.2m) in the first nine months of 2010. With EUR
69.0m and a growth rate of 19.1% (prior year: EUR 57.9m), the home market
also made the largest contribution to operational EBITDA. Ströer has
triggered a quiet 'revolution' in Germany with the launch of a nationwide
network of digital out-of-home media: the Company will install out-of-home
channel media at the 200 top German train stations. Around 1,000 digital
screens are set to be installed by the end of 2011, with which advertisers
can achieve a net reach of more than 20% of the general public in Germany.
'Digitalization is revolutionizing the media market. The new advertising
media are lending a whole new dimension and importance to digital
out-of-home media thanks to its emotional and large-format messages.
Booking lead times for customers are reduced to virtually zero which makes
the out-of-home channel one of the most efficient forms of advertising,'
comments Udo Müller.
In the 'Other' segment, which comprises our Polish activities and the
European giant poster business of the blowUP division, revenue increased
16.5% to EUR 36.1m (prior year: EUR 31.0m). Operational EBITDA in this
segment nudged up slightly from EUR 1.9m to EUR 2.1m. Along with Germany
and Turkey, Ströer now also boasts a leading market position in Poland
following the completed acquisition of News Outdoor Poland. With around
20,800 advertising spaces in more than 200 cities, the Company is planning
to drive forward the consolidation of the Polish out-of-home market.
Product groups
The considerable year-on-year improvement in business performance is also
reflected in the positive development of all of the Group's product groups.
The billboard product group reported significant revenue growth in the
first nine months of 2010, with revenue coming in at EUR 192.6m (up 13.6%)
and accounting for 52.2% of the Group's total revenue. The street furniture
product group also reported strong revenue growth in the same period with
an increase of 13.1% to EUR 87.4m, making up 23.7% of consolidated revenue.
Revenue in the transport product group increased in the first three
quarters by 4.0% to EUR 51.4m and accounted for 13.9% of revenue. Other
revenue contributions of EUR 37.6m (product group other) were up 15.7% and
accounted for 10.2% of consolidated revenue.
Outlook
The third quarter of 2010 has reconfirmed Ströer's growth strategy. In the
traditionally strong fourth quarter, Ströer is looking to repeat the sales
successes achieved in the year to date despite relatively high prior-year
figures. Overall, management is thus optimistic going into the fourth
quarter and, based on the assumption that the Turkish joint venture Ströer
Kentvizyon had been fully consolidated since 2009, anticipates at least 9%
organic growth for the whole of 2010.
The Group's financials at a glance
In EUR m Q32010 Q32009 Change 9M2010 9M2009 ChangeAbout Ströer
Revenue 126.9 110.7 +14.6% 369.1 328.9 +12.2%
Operational EBITDA 22.4 19.7 +13.8% 74.8 59.9 +24.9%
Op. EBITDA margin 17.6% 17.8% -0.1pts 20.3% 18.2% +2.1pts
Profit(adjusted for 1.4 0.4>100% 13.2 1.5>100%
exceptional items)
Ströer Out-of-Home Media AG specializes in all forms of out-of-home media,
from traditional posters and advertising at bus and tram stop shelters and
on vehicles, through to digital and interactive media. The Company markets
more than 280,000 advertising spaces and is one of Europe's leading
out-of-home advertisers. In terms of revenue, Ströer is number one in its
core markets Germany, Turkey and Poland. In these markets, the Company
provides its customers with extensive networks for national advertising
campaigns. The Ströer Group has approximately 1,700 employees at over 60
locations. Its portfolio covers a wide range of out-of-home advertising
products. The Company takes pride in the high quality, innovation and
sophisticated design of its advertising media and street furniture. When it
comes to design for the public sphere, Ströer's products set new standards.
Ströer's street furniture has received 27 international awards. For more
information on the Company, please visit www.stroeer.com
Press contact:
Ms. Claudia Fasse
Ströer Out-of-Home Media AG
Corporate communications
Ströer Allee 1 | 50999 Cologne
Phone: 02236 / 96 45-246
Fax: 02236 / 96 45-6246
Email: cfasse(at)stroeer.de
Investor relations contact:
Mr. Stefan Hütwohl
Ströer Out-of-Home Media AG
Director Group Finance and Investor Relations
Ströer Allee 1 | 50999 Cologne
Phone: 02236 / 96 45-246
Fax: 02236 / 96 45-6338
Email: ir(at)stroeer.de
30.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Ströer Out-of-Home Media AG
Ströer Allee 1
50999 Köln
Deutschland
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 Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of Announcement DGAP News-Service
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Datum: 30.11.2010 - 07:00 Uhr
Sprache: Deutsch
News-ID 32745
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