DGAP-News: Ströer SE & Co. KGaA / Key word(s): Half Year Results
Ströer significantly grows revenue and operational EBITDA in the first six months and adds a dialog marketing platform to its multi-channel strategy
- Consolidated revenue increases by 19% from EUR 502m to EUR 597m
- Operational EBITDA climbs 18% from EUR 115m to EUR 136m
"Our strategy has proved successful, allowing us to continue Ströer's profitable growth course. All core segments have contributed to this positive momentum. In the last few weeks, we have also created another profitable growth segment in the Group by entering the performance-based dialog marketing business," says Udo Müller, founder and Co-CEO of Ströer. "We are confirming our current guidance of operational EBITDA of more than EUR 320m and consolidated revenue of around EUR 1.3b for 2017," adds Co-CEO Christian Schmalzl. "We expect a strong and robust development in the next quarter on a par with the first six months, along with a highly positive impact on future results from our acquisitions Avedo and Ranger Marketing."
Operational EBITDA also developed very well and shot up 41% from EUR 55m to EUR 77m. The operational EBITDA margin came to 25.4%, virtually the same as in the prior year.
As Ströer is continually expanding its business, the segment figures can only be compared with those of the prior year to a limited extent. The integration and targeted restructuring of the newly acquired companies was driven forward in the reporting period and we are frequently able to leverage synergies and economies of scale on both the revenue and cost side.
The segment reported organic revenue growth of more than 6%, up from EUR 235m to EUR 250m in the first six months of the year. Operational EBITDA grew even more strongly, rising by over 12% from EUR 59m to EUR 66m. The development of the operational EBITDA margin was also very positive, climbing from 25.2% to 26.6% in the first six months of 2017. The increase in revenue was accompanied at the same time by a higher cost of sales, which was due primarily to both higher revenue-based lease payments and to higher running costs.
Revenue in the OOH International segment in the first half of 2017 remained shaped by the tense political situation and the unfavorable macroeconomic conditions in Turkey. The Turkish advertising market has come under considerable pressure and the Turkish lira's losses have also deepened compared to the prior year. Both effects had an adverse impact on revenue shown in euro terms.
Overall, due to the significant burdens associated with the Turkish business, the segment reported a 13% decline in revenue from EUR 70m to EUR 61m. Operational EBITDA decreased accordingly, down from EUR 11m to EUR 5m. The EBITDA margin dropped from 16.2% to 8.7%.
The Group's financial figures at a glance
Ströer SE & Co. KGaA is a leading digital multi-channel media company and offers advertising customers individualized and fully integrated, end-to-end solutions along the entire marketing and sales value chain. In the field of digital media, Ströer is setting forward-looking standards for innovation and quality in Europe and is opening up new opportunities for targeted customer contact for its advertisers. Ströer also offers its customers comprehensive performance-based sales solutions with its own dialog marketing segment. In digital publishing, the Company publishes premium content across all digital channels, offering one of Germany's widest reaching networks with its t-online.de and special interest sites.
The Ströer Group commercializes and operates several thousand websites in German-speaking countries in particular and operates approximately 300,000 advertising media in the out-of-home segment. It has approximately 6,500 employees at over 70 locations. In fiscal year 2016, Ströer generated revenue of EUR 1.12b. Ströer SE & Co. KGaA is listed in Deutsche Börse's MDAX.
For more information on the Company, please visit www.stroeer.com.
Press contact Ströer
This press release contains "forward looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including opinions, estimates and projections regarding Ströer's or the Ströer Group's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this press release and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by Ströer with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this press release is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise.
|Company:||Ströer SE & Co. KGaA|
|Ströer Allee 1|
|Phone:||+49 (0)2236.96 45 0|
|Fax:||+49 (0)2236.96 45 299|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|