DGAP-News: Ströer Out-of-Home Media AG: Ströer continues on its growth course in the first quarter
(firmenpresse) - DGAP-News: Ströer Out-of-Home Media AG / Key word(s): Quarter Results
Ströer Out-of-Home Media AG: Ströer continues on its growth course in
the first quarter
19.05.2011 / 07:01
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- Consolidated revenue up 17.0% in the first quarter of 2011 to EUR
122.9m
- Consolidated organic growth at 9.7%
- Strong performance by Ströer Germany with high organic revenue growth
of 9.4%
- Operational EBITDA down slightly on the prior year due to start-up
costs for various new projects
- High investments in further growth
Cologne, 19 May 2011 Ströer Out-of-Home Media AG, one of Europe's
leading providers of out-of-home advertising based in Cologne, continued on
its strong growth course in the first quarter of 2011. Organic growth came
to 9.7% (Q1 2010: 5.3%). Total revenue of the Ströer Group was up 17.0% to
EUR 122.9m (Q1 2010: EUR 105.1m) and was driven by revenue growth in all of
the Company's segments. At EUR 16.2m, operational EBITDA at the Ströer
Group was down slightly on the prior year (Q1 2010: EUR 16.7m) due to
start-up costs for various projects.
'Ströer Out-of-Home Media AG was able to build on the success of its record
year 2010 in the first quarter of this year and continued on its dynamic
growth course,' said Udo Müller, co-founder and CEO of the Ströer Group, in
Cologne today. 'This makes us one of the strongest growing media companies
in Europe. Our performance in Germany was particularly dynamic and we saw
the level of bookings from the top 200 advertisers balloon thanks to our
product innovations.'
Operating segments
Ströer Germany
In the seasonally soft first quarter, the Ströer Germany segment continued
on its steady growth course. At 9.4%, organic growth was at the upper end
of our expectations. Revenue rose by 5.6% to EUR 91.9m (Q1 2010: EUR
87.0m), while operational EBITDA was pushed up 7.6% to EUR 18.7m despite
various start-up costs for the out-of-home channel and premium billboards
projects (Q1 2010: EUR 17.4m). This boosted the operational EBITDA margin
by a further 0.4 percentage points to 20.4% and was achieved by an increase
in bookings by the top 200 advertising customers, an improved lease ratio
and a greater volume of campaigns booked on high-margin premium advertising
media.
Ströer Turkey
The Company also started the year on a good footing in the Turkish market
and achieved organic growth of 8.9% in this segment. However, the
advertising market was overshadowed by a mood of uncertainty toward the end
of the first quarter due to changes in TV advertising regulations. Revenue
- based on the assumption that the Turkish business had already been fully
consolidated in the prior-year quarter, only increased by 3.7% to EUR 18.7m
(Q1 2010: EUR 18.1m) due to unfavorable exchange effects.
Operational EBITDA and the operational EBITDA margin were particularly
affected by changes in the concession portfolio which came into effect at
the start of the year but will not generate any corresponding income until
later in the year due to the set-up of additional advertising media, among
other things.
Other segment
The 'Other' segment, which includes the Polish out-of-home activities and
the giant poster business of the blowUP division, achieved organic growth
of 14.0%. Revenue shot up 36.3% to EUR 12.3m (Q1 2010: EUR 9.0m).
Operational EBITDA only decreased by a marginal EUR 0.1m to -EUR 0.8m,
while the operational EBITDA margin improved by 1.4 percentage points in
the first three months.
Product groups
On a consolidated basis, the billboards product group grew by 21.3% to EUR
62.9m like on like (Q1 2010: EUR 51.9m). This growth was mainly fuelled by
the Turkey segment which reported billboard revenue of EUR 13.5m in the
first quarter, a more than two-fold increase, largely due to the full
consolidation of Ströer Turkey (Q1 2010: EUR 6.2m).
The street furniture product group grew by 28.6% to EUR 33.7m (Q1 2010: EUR
26.2m). The Ströer Germany segment contributed EUR 5.2m to this growth (Q1
2011: EUR 28.7m), reporting an increase of 22.2% itself (Q1 2010: EUR
23.5m).
Revenue from transport media stood at EUR 18.4m in the first quarter (Q1
2010: EUR 15.7m). This represents growth of 17.6% and can be largely
attributed to the increase in revenue from the German market for digital
advertising faces. Overall, Ströer Germany boasted an increase of 17.4% or
EUR 2.7m to EUR 18.1m (Q1 2010: EUR 15.4m).
On 1 April, the initial set-up phase for the out-of-home channel entailing
the installation of 500 screens was successfully completed and screens were
set up at central train stations such as in Berlin, Munich, Stuttgart and
Frankfurt am Main. At the same time, we incorporated this world unique
digital network into our regular marketing activities.
On 1 January, Ströer Out-of-Home Media AG began establishing its network of
premium billboards. By the end of 2015, this network will include 5,000
high-quality advertising media at top sites.
Forecast
Ströer Out-of-Home Media AG is confident that the Group will benefit from a
favorable macroeconomic situation, new projects and structural growth in
the full fiscal year 2011. The Company expects to see another year of
record revenue and operational EBITDA with solid organic consolidated
revenue growth around the mid to high-single-digit mark driven by the solid
growth in Germany and positive performance by the Turkish operations.
Management expects the growth momentum in Turkey to be stronger in the
second half compared with the first half of 2011 when the one-time effects
from the introduction of major restrictions on TV advertising times and the
parliamentary elections ease off. Nonetheless, these effects will
noticeably impede revenue growth in Turkey in the first six months. Against
this background, the Company anticipates organic revenue growth of around
4% for the Group in the second quarter of 2011.
Due to the extensive investments in further growth, the EBITDA margin is
only expected to increase at best marginally year on year.
The Group's financial figures at a glance
In EUR m Q1 2011 Q1 2010 ChangeKey financials by operating segment
Revenue 122.9 105.1 17.0%
Ströer Germany 91.9 87.0 5.6%
Ströer Turkey 18.7 9.0>100%
Other 12.3 9.0 36.3%
Billboard 62.9 51.9 21.3%
Street furniture 33.7 26.2 28.6%
Transport 18.4 15.7 17.6%
Other 7.8 11.3 -30.9%
Organic growth 9.7% 5.3% 85.1%
Gross profit 36.7 36.0 2.0%
Operational EBITDA 16.2 16.7 -3.1%
Operational EBITDA3 margin 13.2% 15.9%
Adjusted EBIT 6.8 10.3 -34.2%
Adjusted EBIT4 margin 5.5% 9.8%
Adjusted loss for the period -1.2 -0.4 n.d.
Loss for the period -6.7 -9.5 n.d.Earnings per share (EUR) -0.16 -0.22
Investments 12.0 3.4>100%
Free cash flow -22.0 -0.7 n.d.
31 Mar 2011 31 Dec 2010 Change
Total equity and liabilities 978.6 989.1 -1.1%
Equity 284.8 296.5 -3.9%
Equity ratio 29.1% 30.0%
Net debt 333.6 320.1 4.2%
Employees 1,728 1,731 -0.2%
Ströer Germany
In EUR m Change ChangeStröer Turkey
Q1 2011 Q1 2010 In EUR m in %
Revenue 91.9 87.0 4.9 5.6%
Billboard 38.3 37.5 0.8 2.2%
Street furniture 28.7 23.5 5.2 22.2%
Transport 18.1 15.4 2.7 17.4%
Other 6.9 10.7 -3.9 -36.0%
Organic growth 9.4% 5.0% 85.8%
Operational EBITDA 18.7 17.4 1.3 7.6%
Operational EBITDA 20.4% 20.0% up 0.4 percentage
margin points
In EUR m Change ChangeOther
Q1 2011 Q1 2010 In EUR m in %
Revenue 18.7 9.0 9.7>100%
Billboard 13.5 6.2 7.3>100%
Street furniture 4.9 2.7 2.2 83.9%
Transport 0.3 0.2 0.2>100%
Organic growth 8.9% 23.3% -61.9%
Operational EBITDA 0.9 1.6 -0.8 -46.7%
Operational EBITDA 4.6% 18.0% down 13.4 percentage
margin points
In EUR m Change ChangeAbout Ströer
Q1 2011 Q1 2010 In EUR m in %
Revenue 12.3 9.0 3.3 36.3%
Billboard 11.1 8.2 2.9 35.6%
Street furniture 0.1 0.1 0.1 65.0%
Transport 0.1 0.1 -0.1 -61.0%
Other 0.9 0.6 0.4 63,8%
Organic growth 14.0% -8.4% n.d
Operational EBITDA -0.8 -0.7 -0.1 -12.7%
Operational EBITDA -6.6% -8.0% up 1.4 percentage
margin points
Ströer Out-of-Home Media AG, 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 531.3m for fiscal year 2010, is the market leader in
Germany, Turkey and Poland and one of Europe's leading out-of-home
advertisers. The Company provides its customers with extensive networks for
national advertising campaigns and has been establishing the world's
largest network of out-of-home moving images with national reach since
December 2010. By the end of 2011, 1,000 high-quality screens at the 200
most highly frequented train stations will be linked up and controlled and
operated centrally from Munich. In addition, Ströer boasts a broad
portfolio of out-of-home products and sets new standards in terms of the
quality, innovation and design of advertising media and street furniture.
Ströer's street furniture has received 27 international awards. The Ströer
Group has approximately 1,700 employees at over 60 locations.
For more information on the Company, please visit www.stroeer.com
Press contact:Contact:
Ms. Claudia Fasse
Ströer Out-of-Home Media AG
Director Group Communication
Ströer Allee 1, 50999 Cologne, Germany
Phone: 02236 / 96 45-246
Fax: 02236 / 96 45-6246
E-mail: cfasse(at)stroeer.de
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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19.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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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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125348 19.05.2011Unternehmensinformation / Kurzprofil:
Datum: 19.05.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 34143
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