JCDecaux (DEC) Q2 2024 earnings summary

Executive summary

• Adjusted revenue rose 14.0% year-over-year to €1,807.6 million in H1 2024, with organic revenue up 13.4% and digital revenue up 27.8%, now 36.8% of total revenue.

• Programmatic advertising revenue surged 61.8% year-on-year, reaching 9% of digital revenue.

• Net income Group share increased 149.6% to €94.4 million, supported by improved operating leverage and a capital gain from the APG/SGA share sale.

• All business segments and geographies posted double-digit organic growth, with notable recovery in China and strong performance in Asia-Pacific, UK, and Rest of Europe.

• ESG progress continued, with SBTi approval of the carbon reduction trajectory and best-in-class ESG ratings.

Financial highlights

• Revenue reached €1,807.6 million, up 14.0% from H1 2023, with operating margin up 28.7% to €261.4 million (14.5% of revenue).

• EBIT before impairment was €112.6 million, up €100 million year-over-year, including a €45.2 million capital gain from the APG/SGA share sale.

• Free cash flow improved to -€20.1 million from -€179.7 million, and operating cash flow increased 21.5%.

• Net debt decreased to €956.8 million, with strong liquidity of €1.7 billion in cash and €825 million undrawn credit line.

• Earnings per share rose to €0.442 from €0.178 in H1 2023.

Outlook and guidance

• Q3 2024 organic revenue growth expected around +10%, driven by digital and the Paris Olympic Games.

• Digital out-of-home forecasted to be the fastest-growing media segment, with a +9.1% CAGR through 2029.

• Programmatic penetration expected to double, reaching 20% of digital revenue in the near future.

• Management remains confident in continued Out of Home market share gains and ongoing digital and programmatic expansion.