DGAP-News: Ströer Out-of-Home Media AG: Ströer AG on track: Revenue up 12.8% in first nine months of 2011
(firmenpresse) - DGAP-News: Ströer Out-of-Home Media AG / Key word(s): Quarter Results
Ströer Out-of-Home Media AG: Ströer AG on track: Revenue up 12.8% in
first nine months of 2011
15.11.2011 / 07:00
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PRESS RELEASE
Ströer AG on track: Revenue up 12.8% in first nine months of 2011
- Consolidated revenue at EUR 416.3m
- Consolidated organic growth at 5.8%
- Increase in profitability of 12.3% at operational EBITDA to EUR 84.0m
- Germany drives business with organic growth of 7.3%
- Advances in digital solutions: Acquisition of ECE flatmedia enlarges
Ströer's digital portfolio and expands significantly its reach in
Germany
- Full-year forecast confirmed: organic growth for the Group around the
mid-single-digit range
Cologne, 15 November 2011 Ströer Out-of-Home Media AG continued on its
growth course in the first nine months of 2011. Consolidated revenue was up
12.8% year on year to EUR 416.3m (prior year: EUR 369.1m), partly owing to
the additions made to the investment portfolio in the prior year. Excluding
the changes in the consolidated group and effects from exchange rate
differences, the Group recorded organic revenue growth of 5.8% (prior year:
9.9%). Operational EBITDA improved 12.3% in the same period to EUR 84.0m
(prior year: EUR 74.8m). At 20.2%, the operational EBITDA margin was on a
par with the prior-year margin of 20.3%. Apart from the weaker Turkey
segment, all group entities contributed to the improved margin. The sharp
increase of operating cash flow (EUR 54.6m; prior year: EUR 6.6m) enabled
Ströer AG to improve the financial position despite the significant boost
of investments to EUR 36.0m (prior year: EUR 11.8m). The majority of the
means flew to the roll-out of growth projects such as the Out-of-Home
Channel and the Premium Billboard.
'We are still on track and strategically investing in solutions to drive
forward our business,' said Udo Müller, CEO of Ströer Group, at today's
presentation of the quarterly figures in Cologne. 'We are currently seeing
digitalization reshape the market: instead of thinking in terms of TV,
print, online and poster advertising, we will soon be talking about static
pictures and moving pictures in buildings or outdoors. Our nationwide
installed networks of digital screens in Germany go beyond traditional
out-of-home advertising: We see evolving a third pillar in the
moving-picture market, alongside TV and the internet.'
Operating segments
Ströer Germany
The Ströer Germany segment generated revenue of EUR 307.7m in the first
nine months of 2011 (prior year: EUR 293.1m), an increase of 5.0% year on
year. Organic growth even came to 7.3%. Operational EBITDA was up 11.9% to
EUR 77.2m (prior year: EUR 69.0m) while the operational EBITDA margin
climbed from 23.5% to 25.1%. The sales boost was again driven by a dynamic
sales increase in the street furniture product group, recording a growth
rate of about 18% not only in the third quarter but also in the entire
year. Also the digital out-of-home media business grew revenues continued
to grow dynamically with a sales growth by more than 50%, and is thus
driving forward the expansion of operations in Germany, while boosting the
level of bookings for high-margin premium products. In particular, the top
200 advertisers have contributed to the structural changes on the German
advertising market increasing the market share of out-of-home advertising
to 4.5% in terms of gross advertising revenues until September (prior year:
4.1%).
Ströer Turkey
The Turkish operations contributed EUR 64.0m (prior year: EUR 40.0m) to
consolidated revenue in the period from January to September. The 59.9%
jump in revenue can be largely attributed to the full consolidation of the
Turkish segment. However, the growth momentum was dampened this year by
unfavorable exchange rate movements and market-related effects. Organic
revenue only grew by 2.9% (prior year: 38.2%) in the first nine months of
2011. This was chiefly due to the parliamentary elections in June and new
legislation governing the scope of TV advertising. Operational EBITDA was
up 21.2% to EUR 10.9m. The EBITDA margin was down 5.5 percentage points to
17.0% due to the start-up costs for the expansion of advertising
capacities.
Other Segment
The Western European giant poster business of the blowUP division and the
business activities in Poland which are included in the 'Other' segment
increased revenue by 24.9% to EUR 45.1m in the first nine months (prior
year: EUR 36.1m) due to the acquisition of News Outdoor Poland in the
previous year. Driven by these two businesses, operational EBITDA was up
54.2% to EUR 3.2m (prior year: EUR 2.1m); the operational EBITDA margin
rose 1.3 percentage points to 7.0%. Organic growth in this segment was
-2.1% over the entire period (prior year: 9.7%) and is largely a reflection
of the negative organic growth in Poland in the first half of the year.
There, the third quarter saw positive organic revenue growth for the first
time this year.
Product groups
Revenue in the billboard product group was up 16.0% to EUR 223.4m in the
first nine months (prior year: EUR 192.6m) and largely reflects changes in
the investment portfolio. As a result, revenue from this product group
increased in particular in Turkey, up 71.8% to EUR 46.8m.
The street furniture product group also saw its revenue jump by 21.0% and
improved to EUR 105.8m (prior year: EUR 87.4m). The German operations
contributed EUR 89.1m (prior year: EUR 75.2m) and grew 18.5% in the same
period.
Revenue from transport media climbed 18.9% to EUR 61.2m in the period from
January to September (prior year: EUR 51.4m). In particular, the higher
margins achieved on digital advertising media in Germany boosted the
positive trend in this product group. With revenue of EUR 60.1m (prior
year: EUR 50.3m), transport media in Germany reported an increase of 19.5%.
In the 'Other' advertising media product group, the decrease in revenue to
EUR 25.9m (prior year: EUR 37.6m) can be mainly attributed to the
discontinuation of service activities.
Until now, more than 800 Out-of-Home Channel screens were installed at
central train stations such as in Berlin, Hamburg, Munich, Cologne,
Stuttgart, Düsseldorf and Frankfurt am Main. This unique digital network
was incorporated into our regular marketing activities on 1 April. The
further expansion of the out-of-home channel is largely on track with 900
to 1,000 screens due to be installed by the end of the year. The network
will be completed in the following fiscal year. At the same time, Ströer
set up almost 600 premium billboards across Germany as part of its quality
and capacity initiative during the period from January to September.
Forecast
Ströer's management is confirming the revenue and margin forecasts made in
the report on the first six months of 2011. The company therefore still
expects to see organic revenue growth for the Group in the mid-single-digit
percentage range, which will make it difficult to maintain the operational
margin at the prior-year level.
The Group's financial figures at a glance
In EUR m 9M 2011 9M 2010 ChangeKey financials by segment
Revenue 416.3 369.1 12.8%
Ströer Germany 307.7 293.1 5.0%
Ströer Turkey 64.0 40.0 59.9%
Other 45.1 36.1 24.9%
Billboard 223.4 192.6 16.0%
Street furniture 105.8 87.4 21.0%
Transport 61.2 51.4 18.9%
Other 25.9 37.6 -31.1%
Organic growth(1) 5.8% 9.9% -40.8%
Gross profit(2) 144.4 134.5 7.3%
Operational EBITDA(3) 84.0 74.8 12.3%
Operational EBITDA(3) margin 20.2% 20.3%
Adjusted EBIT(4) 58.6 55.0 6.6%
Adjusted EBIT(4) margin 14.1% 14.9%
Adjusted profit or loss for the
period(5) 21.1 13.2 59.9%
Adjusted earnings per share(6) (EUR) 0.50 0.31
Profit or loss for the period -17.4 39.7 -143.7%
Earnings per share(7) (EUR) -0.41 0.94
Investments(8) 36.0 11.8>100%
Free cash flow(9) 18.8 -58.8 n.d.
30 Sep 2011 31 Dec 2010 Change
Total equity and liabilities 960.8 987.1 -2.7%
Equity 255.0 294.4 -13.4%
Equity ratio 26.5% 29.8%
Net debt(10) 312.3 320.1 -2.4%
Employees (11) 1,727 1,731 -0.3%
(1)Organic growth: excluding exchange rate effects and effects from the
(de-) consolidation 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 net of the financial result adjusted for exceptional items
and the normalized tax expense
(6)Calculated as adjusted profit for the period divided by the number of
shares outstanding after the IPO
(7)Calculated as actual profit or loss for the period divided by the number
of shares outstanding after the IPO
(8)Including cash paid for investments in property, plant and equipment and
in intangible assets but excluding cash paid for investments in non-current
financial assets and cash paid for the acquisition of consolidated entities
(9)Cash?ows from operating activities less cash?ows from investing
activities
(10)Financial liabilities less derivative financial instruments and cash
(11)Headcount
Ströer Germany
In EUR m Change ChangeStröer Turkey
9M 2011 9M 2010 In EUR m in %
Revenue 307.7 293.1 14.7 5.0%
Billboard 134.9 132.0 2.8 2.2%
Street furniture 89.1 75.2 13.9 18.5%
Transport 60.1 50.3 9.8 19.5%
Other 23.7 35.6 -11.9 -33.4%
down 0.1percentage
Organic growth 7.3 7.4% points
Operational EBITDA 77.2 69.0 8.2 11.9%
Operational EBITDA up 1.6 percentage
margin 25.1% 23.5%points
In EUR m Change ChangeOther
9M 2011 9M 2010 In EUR m in %
Revenue 64.0 40.0 24.0 59.9%
Billboard 46.8 27.2 19.5 71.8%
Street furniture 16.4 12.0 4.4 36.7%
Transport 0.8 0.8 0.0 2.2%
Organic growth 2.9% 38.2% down 35.3percentage
points
Operational EBITDA 10.9 9.0 1.9 21.2%
Operational EBITDA down 5.5 percentage
margin 17.0% 22.5% points
In EUR m Change ChangeAbout Ströer
9M 2011 9M 2010 In EUR m in %
Revenue 45.1 36.1 9.0 24.9%
Billboard 41.8 33.3 8.5 25.4%
Street furniture 0.4 0.3 0.1 18.1%
Transport 0.3 0.4 -0.1 -30.8%
Other 2.7 2.1 0.6 26.8%
Organic growth -2.1% 9.7% n.d.
Operational EBITDA 3.2 2.1 1.1 54.2%
Operational EBITDA down 1.3 percentage
margin 7.0% 5.7% 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 pictures with national reach since
December 2010. By the end of 2011, up to 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 that set 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:
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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Language: EnglishCompany: Ströer Out-of-Home 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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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146298 15.11.2011
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