DGAP-News: Ströer Out-of-Home Media AG: Ströer delivers record results in 2010
(firmenpresse) - DGAP-News: Ströer Out-of-Home Media AG / Key word(s): Final Results
Ströer Out-of-Home Media AG: Ströer delivers record results in 2010
12.04.2011 / 07:21
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- Revenue increase by 13.1% to EUR 531.3m
- Disproportionate operational EBITDA increase by 27.2% to EUR 127.3m
- Market leadership position in Turkey and Poland expanded through
acquisitions
- Successful implementation of the first digital outdoor advertising
media network in Germany
- tnsEmnid study: out-of-home media are highly accepted
Cologne, 12 April 2011. For Ströer Out-of-Home Media AG ('Ströer'), the
2010 financial year was the most successful since the founding of the
company in 1990. Revenue for the group, one of the leading outdoor
advertising providers in Europe with its headquarters in Cologne, exceeded
the EUR 500m mark for the first time and grew by 13.1% to EUR 531.3m
compared to the prior year (EUR 469.8m). Operational EBITDA (earnings
before interest, taxes, depreciation and amortisation, adjusted for
exceptional items) increased even faster by 27.2% to EUR 127.3m (2009: EUR
100.0m) for an operational EBITDA margin of 24.0%. Earnings per share after
the deduction of all costs came in at EUR 1.32 compared to EUR 0.03 in the
prior year.
'We are proud to say that all operating segments contributed to these
record numbers,' Udo Müller, co-founder and CEO of the Ströer Group, said
in Cologne today. 'The IPO provided the basis for securing the leading
position of the Ströer Group in the European outdoor advertising market. By
investing in Turkey and Poland, we established our business in two
strategically important growth markets. We also took ambitious measures to
advance digitalisation in our sector and increasing the share of
out-of-home media in the overall ad mix.'
An exclusive study we prepared together with tnsEmnid in March revealed
that out-of-home media is highly accepted. 92% of the people interviewed
said that they were not bothered by billboard advertising. Approximately
90% of the interviewees saw no issues with ads on means of transport or
digital outdoor advertising. By contrast, about 50% of the respondents
regarded TV commercials as annoying. 34% actually liked billboard
advertising; this figure is even higher with people up to 34 years old
(43%). Digital out-of-home media was well-received by 31% of the
interviewees (36% of people aged up to 34). 21% of all respondents and 29%
of the target group up to 34 years would support more digital outdoor
advertising.
The growth in revenue recorded in 2010 is proof of the increasing
attractiveness of outdoor advertising. Assuming the full consolidation of
the Turkish joint venture Ströer Kentvizyon since 2009, group revenue even
rose to EUR 561.8m in 2010. Consolidated organic growth according to this
definition totalled 9.4%.
The investment in Ströer Kentvizyon was increased from 50 to 90% on 1
September 2010 and the Ströer Group took over News Outdoor Poland entirely
in October. Since then these activities have been fully consolidated in the
financial statements of the Ströer Group.
New equity of EUR 287.9m from the proceeds of the IPO (before the deduction
of transaction costs) significantly improved the assets and financial
position of Ströer. Net debt was reduced considerably by 35.4% to EUR
320.1m (2009: EUR 495.4m). The equity ratio is now at 30.1%. Profit
adjusted for exceptional items increased by 97.0% to EUR 33.2m (2009: EUR
16.8m). Cash flow from operating activities, adjusted for special effects
related to the IPO and acquisitions, grew to EUR 57.7m and underscores the
major improvement in results.
Operating segments and growth initiatives
All three segments contributed to the record results of the Ströer Group
thanks to their organic growth.
Ströer Germany, the largest segment, recorded revenue of EUR 409.9m.
Revenue increased by 4.2% compared to the prior year (EUR 393.3m). The
Ströer Group is therefore continuing its positive growth trend after
exceeding the overall performance in the out-of-home media sector during
the crisis year of 2008. At EUR 109.5m with growth of EUR 14.2m (14.9%),
the home market also made the biggest contribution to consolidated
operational EBITDA (2009: EUR 95.3m).
The Ströer Group advanced digitalisation in the reporting period as planned
and launched the development of a country-wide network of digital outdoor
advertising media. 200 of the largest German railway stations are being
equipped with the Out-of-Home Channel. Around 1,000 digital screens will be
installed by the end of 2011, achieving net coverage of more than 20% in
the overall population. With introduction of Out-of-Home-Channel Ströer put
itself in the leading role at digital development and realised the claim to
act as digital pioneer. Ströer is also launching a quality offensive at
locations with the highest coverage, equipping around 5,000 large-format
advertising media in backlit glass cases with changer mechanisms by the end
of 2015.
Revenue in the Turkish business of the Ströer Group developed positively
thanks to the dynamic performance of the Turkish media industry and the
full consolidation of the organization as of 1 September after Ströer Group
increased its investment from 50% to 90%. Revenue of this segment rose by
more than 100% to EUR 68.6m (2009: EUR 33.5m). Operational EBITDA also
increased by more than 100%. This performance figure came in at EUR 21.9m
in 2010 compared to EUR 8.6m in the prior year.
Organic growth in revenue, i.e. adjusted for consolidation and currency
effects, was 36.4%. Revenue came in at EUR 99.1m (2009: EUR 67.0m).
Operational EBITDA rose by 66.1% to EUR 28.7m (2009: EUR 17.3 million).
The third segment of the Ströer Group includes activities in the European
giant poster business (blowUp Group) and in Poland. Positive results in
this segment are mainly due to giant poster activities under the umbrella
of the blowUp Group. Revenue generated in Poland also developed positively,
yet all growth was achieved due to consolidation and currency effects.
Overall revenue in the 'Others' segment increased by 22.6% to EUR 52.9m in
2010 (2009: EUR 43.1m). Operational EBITDA in this segment grew by 25.4% to
EUR 4.1m (2009: EUR 3.3m).
With the takeover of News Outdoor Poland, the Ströer Group has positioned
itself in a market leading position in one of Europe's most dynamic
markets. The company plans to drive the consolidation of the Polish outdoor
advertising market with around 20,000 advertising spaces in more than 200
cities.
Product groups
The Ströer Group was able to achieve significant revenue increases in all
product groups over the course of the 2010 financial year. At 15.2% the
billboard product range posted the strongest growth and also the highest
volume with revenue of EUR 274.7m (2009: EUR 238.5m). The street furniture
product range with waiting halls, columns and City Guide information
systems generated similar revenue growth at 14.0%. Here revenue for 2010
came in at EUR 134.6m (2009: EUR 118.1m).
Revenue in the transport product group (including transportation media)
grew by 6.4% to EUR 73.8m (2009: EUR 69.4m). The 'Other' product group also
supported the growth trend with an increase of 10.1% to EUR 48.1m (2009:
EUR 43.8m).
Outlook
The 2010 financial year offered impressive proof that the Ströer growth
strategy is successful. Ströer Management is confident for full year 2011
benefiting from favourable macro picture, new projects and structural
growth. The Group should deliver another year of decent organic revenue
enhancement around a mid to high single digit mark potentially accompanied
by a slight margin improvement.
In the first quarter of 2011 Ströer expect an organic revenue growth rate
of 8% for the Group fuelled by a strong German and blowUP performance. Also
the Turkish business will contribute to this organic growth at a rate
similar with the Group figure.
In the second quarter Ströer sees continuation of the positive top-line
momentum of the Group and would expect delivery of a mid to high single
digit organic revenue growth rate. Management will further quantify the Q2
organic growth guidance at the time of releasing the first quarter results
on May 19.
Due to effects of ramp-up and overhead investments particularly in the
first 6 month of 2011 ströer expect for the full year currently a slide
progression of operational margin beyond the 2010 levels.
The Groups's financial figures at a glance
In EUR m 2010 2009 ChangeAbout Ströer
Revenue 531.3 469.8 13.1 %
Ströer Germany 409.9 393.3 4.2 %
Ströer Turkey 68.6 33.5>100.0
%
Other 52.9 43.1 22.6 %
Billboard 274.7 238.5 15.2 %
Street Furniture 134.6 118.1 14.0 %
Transport 73.8 69.4 6.4 %
Other 48.1 43.8 10.1 %
Organic Growth 7.5 % -2.5 % n.d.
Gross profit 198.8 169.1 17.6 %
Operational EBITDA 127.3 100.0 27.2 %
Operational EBITDA3-margin 24.0 % 21.3 %
Adjusted EBIT 97.4 71.1 36.9 %
Adjusted EBIT4-margin 18.3 % 15.1 %
Adjusted profit for the period 33.2 16.8 97.0 %
Profit for the period 55.8 1.1>100.0
%
Earnings per share (EUR) 1.32 0.03
Investitments 28.5 22.4 27.0 %
Free cash flow -68.2 16.6>100.0
%
31.12.2010 31.12.2009 Change
Total equity and liabilities 985.4 748.6 31,6 %
Equity 296.6 -48.1 n.d.
Equity ratio 30.1 % -6.4 %
Net debt 320.1 495.4 -35.4 %
Employees 1,731 1,587 9,1 %
Ströer Out-of-Home Media AG is the specialist for all forms of advertising
used outside the home - from classic billboard media to advertising in
waiting halls and means of transportation to highly modern digital outdoor
advertising media. The company markets over 280,000 advertising spaces, is
number 1 in Germany, Turkey and Poland and one of the leading outdoor
advertising providers in Europe. Ströer offers comprehensive networks for
national advertising campaigns to its customers. Since December 2010, the
company has been developing the largest moving image network in the world
for nationwide outdoor advertising coverage. 1,000 premium screens at the
200 railway stations with the highest traffic in Germany will be networked
for central management and control from Munich by the end of 2011. Ströer
also offers an extensive selection of outdoor advertising products that set
new standards in terms of quality, innovation and design for advertising
media and street furniture. Ströer street furniture has been recognised
with 27 international awards. The Ströer Group currently has around 1,700
employees at more than 60 locations.
For more information on the company, please visit www.stroeer.com
Press Contact:
Claudia Fasse
Ströer Out-of-Home Media AG
Head of Corporate Communications
Ströer Allee 1 | D-50999 Köln, Germany
Telephone: 02236 / 96 45-246
Fax: 02236 / 96 45-6246
E-mail: cfasse(at)stroeer.de
Contact:
IR Contact:
Stefan Hütwohl
Ströer Out-of-Home 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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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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Datum: 12.04.2011 - 07:21 Uhr
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