Ströer Media AG: Positive business performance in the fourth quarter after a challenging year overall
Mar 26, 2013 7:09 AM
Ströer Media AG / Key word(s): Final Results
Cologne, 26 March 2013 Ströer Media AG pursued its growth strategy in fiscal year 2012 by investing selectively in its core markets. With the roll-out and expansion of the Out-of-Home Channel in train stations and shopping malls in Germany, Ströer has created one of the world's largest digital product offerings with a national reach. In Turkey, Ströer invested in expanding its range of billboard products and was able to report significant additional revenue already in the fourth quarter.
Against this background, consolidated revenue decreased by 2.9% from EUR 577.1m in the prior year to EUR 560.6m. Slight growth in Turkey was contrasted by declining revenue in other segments. Adjusted for changes in the investment portfolio and exchange rate effects, organic growth in the Group was -4.0% (prior year: 4.8%).
Net debt, another key performance indicator for the Group, declined slightly overall by EUR 2.1m in the fiscal year to EUR 302.1m, as Ströer was able to offset the reduction in its operating result on the cash flow side. The leverage ratio (ratio between net debt and operational EBITDA) increased slightly to 2.8 only due to the drop in EBITDA.
'2012 was a year of transition in which we enhanced our business through targeted growth investments in Germany and abroad in view of the continuing digitalization of the media landscape. The roll-out and expansion of our Out-of-Home Channel in Germany's largest train stations and in ECE's shopping malls has enabled us to set new standards in digital out-of-home advertising,' said Udo Müller, CEO of Ströer. 'We have laid the foundation for further growth. The importance of out-of-home advertising - whether analog or digital - will steadily increase due to the digitalization of media.'
In the past fiscal year, Ströer adjusted the pace of its investments to reflect the challenging environment and invested selectively in specific growth projects in Germany and abroad. The Group focused mainly on the roll-out of more digital advertising media and premium billboards and is seeing positive trends in the digital segment in particular. Overall, Ströer reduced its investments by 18.1% to EUR 42.6m (prior year: EUR 52.0m).
The economic situation in the eurozone will remain uncertain this year. Against this background, the advertising sector remains volatile and will be shaped by short-term bookings by our customers. For the first quarter 2013, we expect to see a continuation of the positive momentum already witnessed in the last quarter in Turkey and Germany and thus anticipate an increase of the organic group revenue of +5%. In the second quarter we expect to see - due to currently reluctant client bookings - a temporary halt in the slight upward trend estimated for the full-year.
1 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 before non-controlling interests net of the financial result adjusted for exceptional items and the normalized tax expense
6 Adjusted profit or loss for the period net of reported non-controlling interests divided by the number of shares outstanding after the IPO (42,098,238)
7 Profit or loss for the period before non-controlling interests
8 Actual profit or loss for the period net of reported non-controlling interests divided by the number of shares outstanding after the IPO (42,098,238)
9 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
10 Cash flows from operating activities less cash flows from investing activities
11 Financial liabilities less derivative financial instruments and cash
12 Headcount (full and part-time employees)
Financial figures of the segments
Note: all figures are rounded
For more information on the Company, please visit www.stroeer.de.
Ströer Media AG
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|Company:||Ströer Media AG|
|Ströer Allee 1|
|Phone:||+49 (0)2236.96 45 0|
|Fax:||+49 (0)2236.96 45 299|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart|
|End of News||DGAP News-Service|