Record-breaking revenue: Strong digital business drives Ströer's profitable growth in first six months
Aug 13, 2015 7:00 AM
Ströer SE / Key word(s): Quarter Results
Revenue climbed in the first six month by 9% on the first six months of the prior year to EUR 363.4m. This corresponds to organic revenue growth of 8%. This growth was mainly fueled by the Digital segment, which saw its revenue grow by more 23% on the first half of the prior year to EUR 88.2m. This segment reported significant organic growth of 24.6%, with the new content business making a particularly strong contribution to this very positive development. The Out-of-Home Germany segment reported organic growth of 6.1% in the first six months and contributed a total of 214.1m to revenue. The Segment Out-of-Home international reported a minor increase in revenue to EUR 73.1m in the first six months.
The upward trend in revenue also had a positive effect on operational EBITDA, which increased sharply year-on-year by more than 36% to EUR 78.4m. The operational EBITDA margin also improved significantly on the prior period, standing at 21.2% compared with 17% in the prior year.
The development of adjusted net profit was particularly impressive. This figure soared to EUR 33.8m, almost double the prior-year amount on the back of further cost efficiency improvements in all business segments of Ströer.
Despite intense investment activities and various acquisitions in the first half of the year 2015, Ströer successfully kept the leverage ratio (net debt to operational EBITDA) stable at 1.9x thanks to good operating results.
Based on the takeover of Germany's leading internet portal t-online.de and Germany's TOP-3 online sales house InteractiveMedia, the Company has raised its medium-term guidance: for 2016 Ströer anticipates consolidated revenue of approximately EUR 1b and an EBITDA margin of 23% to 24%. For 2016 the company expects strong growth in operational EBITDA to a triple-digit million figure in the Digital segment. Ströer will continue to strive to increase the revenue contribution of the Digital segment to 50% in the coming years. The outlook for the current fiscal year has been reaffirmed: the Company forecasts organic revenue growth in the mid to high single-digit percentage range and expects operational EBITDA to amount to at least EUR 180m.
"We carried the excellent development of the last months and quarters into the new period and are presenting a first six months shaped by digital growth. Our key financials show a clearly positive development. Based on the acquisitions of the leading internet portal t-online.de (according AGOF) and the TOP-3 online sales house InteractiveMedia (according AGOF) that were announced today, we have raised our medium-term guidance and are anticipating revenue of approximately EUR 1b for the coming year," says Udo Müller, CEO of Ströer.
(1) Joint ventures are consolidated at-equity - according to IFRS 11
(2) Joint ventures are consolidated proportional (management approach)
(3) Revenues of segment Ströer Digital and digital OoH revenues of other segments
(4) Excluding exchange rate effects and effects from the (de-)consolidation and discontinuation of operations (Joint ventures are consolidated proportional)
(5) Revenue less cost of sales (Joint ventures are consolidated at-equity - according to IFRS 11)
(6) Earnings before interest, taxes, depreciation and amortization adjusted for exceptional items (Joint ventures are consolidated proportional)
(7) Earnings before interest and taxes adjusted for exceptional items, amortization of acquired advertising concessions and impairment losses on intangible assets (Joint ventures are consolidated proportional)
(8) Adjusted EBIT before non-controlling interest net of the financial result adjusted for exceptional items and the normalized tax expense (Joint ventures are consolidated proportional)
(9) Adjusted profit or loss for the period net of non-controlling interests divided by the number of shares outstanding (48.869.784)
(10) Profit or loss for the period before non-controlling interest (Joint ventures are consolidated at-equity - according to IFRS 11)
(11) Actual profit or loss for the period net of non-controlling interests divided by the number of shares outstanding (48.869.784)
(12) Including cash paid for investments in property, plant and equipment and in intangible assets (Joint ventures are consolidated at-equity - according to IFRS 11)
(13) Cash flows from operating activities less cash flows from investing activities (Joint ventures are consolidated at-equity - according to IFRS 11)
(14) Financial liabilities less derivative financial instruments and cash (Joint ventures are consolidated proportional)
(15) Headcount of full and part-time employees (Joint ventures are consolidated proportional)
The Ströer Group has approximately 2,500 employees at over 70 locations.
For more information on the Company, please visit www.stroeer.com.
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