Cologne, 22 February 2018 The preliminary figures from Ströer SE & Co. KGaA's 2017 annual report show record results and underscore the success of the growth course pursued. Consolidated revenue mushroomed 18% from EUR 1.12b to EUR 1.33b. Organic growth stood at around 9%.
Operational EBITDA increased by a substantial 17%, up from EUR 283m to EUR 331m and thus achieved a new record high. Adjusted profit for the period developed well as expected, climbing 19% from EUR 154m to EUR 184m. Adjusted earnings per share also rose to EUR 3.20. The solid performance of the operating business also had a positive effect on the financial position, lifting the free cash flow by 6% from EUR 139m to EUR 146m despite substantial one-off expenses. The leverage ratio rose marginally from 1.2 to 1.4.
Ströer successfully expanded its product portfolio in the second half of 2017 adding the dialog media segment and thus reaffirmed its strategic objective of making integrated offerings available along the marketing and sales funnel and the entire customer journey. Strengthening operations with the heavily performance-driven dialog media segment underlines Ströer's strategic aim to be Germany's most customer-centric media company.
All segments have contributed to the success of the Ströer Group. The diversification of the product mix, the extended digital portfolio and the increased relevance of Ströer in local, regional and national marketing activities are significantly contributing to the positive development of Ströer. The new dialog media segment is also contributing for the first time to the success of the Ströer Group.
"Ströer is boasting strong growth figures once again in 2017 and our KPIs are at record highs. We also met all our guidance metrics in 2017 - for the fifth consecutive year now and consistently for all KPIs. This highlights the success and long-term sustainability of our strategy," says Udo Müller, founder and Co-CEO of Ströer. "In addition, we got off to a good start in 2018 and are updating our guidance for 2018 to operational EBITDA of around EUR 535m (after IFRS 16/this corresponds to EUR 370m before IFRS 16). In view of our entry into the area of dialog marketing, we are adjusting our revenue forecast for 2018 to around EUR 1.6b."
"We are clearly focused on our strategic objective of being the most customer-centric media company with a vertically integrated portfolio of branding, performance and dialog products. The addition of the dialog marketing segment gives us the opportunity to talk to our customers about holistic performance-based solutions ranging from location or content-specific reach and interaction to the entire spectrum of dialog marketing and transactions," explains Ströer's Co-CEO Christian Schmalzl. "We are thus creating the conditions for the further profitable growth of our Company."
Ströer is adopting the new standard IFRS 16 on lease accounting in the current fiscal year. In order to reflect the ensuing effects on the financial accounting, the Company has adjusted its guidance for 2018 in relation to operational EBITDA to around EUR 535m. If IFRS 16 was not adopted early, operational EBITDA would stand at around EUR 370m.
All figures for fiscal year 2017 are preliminary and have not been audited yet. The final results and the proposal for the distribution of a dividend for 2017 will be presented when the annual report is published on 27 March 2018.
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 8,000 employees at over 70 locations. In fiscal year 2017, Ströer generated revenue of EUR 1.33b - all figures for fiscal year 2017 are preliminary and have not been audited yet. Ströer SE & Co. KGaA is listed in Deutsche Börse's MDAX.
For more information on the Company, please visit www.stroeer.com.
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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.