Ströer Media AG: Ströer continues on its growth course in the second quarter
Aug 22, 2013 7:04 AM
Ströer Media AG / Key word(s): Half Year Results/Quarter Results
- Consolidated revenue up 8.1% to EUR 289.0m
- 5.0% organic growth
- Operational EBITDA increases by 16.2% to EUR 47.4m
- Another clear improvement in adjusted profit or loss for the period
Cologne, 22 August 2013 In the second quarter of 2013, Ströer Media AG continued its positive performance from the first quarter, reporting clear growth for the entire first six months of the year. The Group's revenue rose by 8.1% year on year to EUR 289.0m. The upturn in business in Turkey and Germany, which remain the Company's most important core markets, contributed in particular to this trend. The main driver of Ströer's clear growth was the fact that revenue in June exceeded expectations. Gross profit increased by 8.9% to EUR 85.5m.
Operational EBITDA rose by 16.2% to EUR 47.4m, due to revenue growth and further cost savings. The operational EBITDA margin therefore increased from 15.3% to 16.4%. The loss for the period of EUR 1.4m in the first six months of 2013 was higher than in the prior year (loss of EUR 0.2m).
Compared with the end of 2012, net debt rose by EUR 19.2m from EUR 302.1m to EUR 321.4m in the first six months of 2013. The main reason for this development was earn-out liabilities incurred in connection with business combinations. Overall, this results in a leverage ratio of 2.8.
In the first half of 2013, Ströer scaled back its investments in traditional out-of-home media and only invested selectively in specific growth projects in Germany and abroad. This led to a 20.7% reduction in the investment volume to EUR 16.2m (prior year: EUR 20.5m).
In the first six months of 2013, the Ströer Germany segment increased its revenue by EUR 6.3m compared with the respective prior-year period to EUR 204.8m. While bookings by our national customers increased slightly over the first six months, our regional business remained on a growth trajectory. The increase in revenue in the Ströer Germany segment was accompanied by a rise in rental and lease expenses as well as running costs. Higher electricity costs in particular had an adverse effect on operational EBITDA, which increased only marginally by 0.4% to EUR 42.9m (prior year: EUR 42.7m). In step with this change, the operational EBITDA margin fell slightly to 21.0% (prior year: 21.5%).
The Ströer Turkey segment continued its growth trajectory in the second quarter of 2013. Segment revenue increased by 16.1% to EUR 49.2m in the first half of 2013.
The second quarter of 2013 saw the Ströer Group gradually enter the online advertising business. As this business represents an important pillar of the corporate strategy, Ströer is including it in a separate segment. The new Online segment generated a revenue contribution of EUR 9.5m from adscale GmbH, which was acquired in April (91%), and from Ströer Digital Media GmbH, which has been wholly owned since June this year. To date, the results have been in line with expectations; however, the contribution does not reflect a full quarter due to the Group's gradual entry into the online business. The integration of the newly acquired entities into the Ströer Group is proceeding according to plan.
The 'Other' segment includes Ströer's Polish out-of-home activities and the western European giant poster business of the blowUP division.
The trends we have observed during the second quarter seem to continue throughout the third quarter. However, following a more quiet summer period in our markets we are currently expecting an organic growth rate of around 1% for the third quarter 2013.
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) plus the time-weighted addition of the shares from the capital increase (6,771,546) on 3 June 2013
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) plus the time-weighted addition of the shares from the capital increase (6,771,546) on 3 June 2013
9 Including cash paid for investments in property, plant and equipment and in intangible assets
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)
Note: all figures are rounded
The Ströer Group commercializes more than 280,000 out-of-home advertising faces and several thousand websites. With consolidated revenue of EUR 560m for the full year 2012, Ströer Media AG is one of largest providers of out-of-home media in Europe in terms of revenue.
The Ströer Group has approximately 2,000 employees at over 70 locations.
For more information on the Company, please visit www.stroeer.de
Director Group Finance and Investor Relations
Ströer Media AG
Ströer Allee 1 | D-50999 Cologne, Germany
Phone: +49 (0)2236 / 96 45-338
Fax: +49 (0)2236 / 96 45-6338
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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|