Ströer Out-of-Home Media AG boosts revenue, earnings and profitability in first half of 2010
Aug 31, 2010 7:00 AM
Ströer Out-of-Home Media AG / Half Year Results
31.08.2010 07:00
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Cologne, August 31, 2010
Ströer boosts revenue, earnings and profitability in first half of 2010
Dynamic development in second quarter; above-average growth in Turkey
- Sales revenues of the Ströer Group up by 11.0 percent in first half of
2010, reaching EUR242.2 million (H1 2009: EUR218.1 million); organic
growth amounts to 10.0 percent
- Operational EBITDA up by 30.3 percent in the first six months of 2010
to EUR52.4 million (H1 2009: EUR40.2 million); operational EBITDA
margin increases by more than 3 percentage points to 21.6 percent
- Organic sales growth accelerates to up to 14.0 percent in second
quarter 2010; operational EBITDA increases by 41.3 percent
- Substantial reinforcement of equity capital in third quarter following
successful IPO in July 2010
Ströer Out-of-Home Media AG ('Ströer'), one of the leading providers of
out-of-home advertising in Europe, headquartered in Cologne, looks back on
a successful first half of fiscal 2010. 'Thanks to our strong market
position and the increasing importance of the out-of-home advertising
industry, we have benefited to a disproportionate extent from the
revitalization of the advertising market,' says Udo Müller, co-founder and
CEO of the Ströer Group.
The Group's sales revenues were up by 11.0 percent in the first six months
of fiscal 2010, reaching EUR242.2 million (H1 2009: EUR218.1 million). This
result can be attributed in particular to positive business trends in
Germany, Turkey and to the giant poster business of the blowUP Group.
Organic revenue growth, after deducting changes to the portfolio of
holdings and foreign exchange rate effects, reached a level of 10.0
percent. On the assumption of an already concluded full consolidation of
the Turkish joint venture Ströer Kentvizyon, sales revenues in the first
half of fiscal 2010 would have even increased by 13.6 percent to EUR265.6
million. The closing of the stake increase from currently 50 to 90 percent
in Ströer Kentvizyion is scheduled for the beginning of September. The
substantially brisker advertising activities compared with the previous
year had a positive influence on all product groups, leading to
double-digit growth rates in sales numbers in the fields of billboards and
street furniture.
Group operational EBITDA (earnings before interest, taxes, depreciation and
amortization, adjusted for special effects) saw a disproportionately
substantial surge by 30.3 percent to EUR52.4 million (H1 2009: EUR40.2
million). Assuming a full consolidation of operations in Turkey, the
increase in earnings would have turned out much higher by 34.5 percent,
reaching EUR58.7 million. 'The improvement in the Group's earnings is
mainly attributed to the positive trend in the product group billboard and
a higher occupancy rate especially of our premium advertising media. Due to
associated cost degression effects, we succeeded in achieving a
disproportionate increase in earnings,' says Alfried Bührdel, CFO and
Executive Vice President of Ströer.
Ströer also recorded substantial increases on a quarter-on-quarter basis.
The Group's sales revenues went up by 15.5 percent compared with the second
quarter of 2009 to EUR137.1 million (Q2 2009: EUR118.7 million). This
equals an organic growth of 14.0 percent. Whereas Ströer Deutschland
managed to record an organic growth of 10.2 percent, business operations in
Turkey (50 percent consolidated) witnessed an exceptionally strong surge
with an organic growth of 54.1 percent. This increase in sales in Turkey
can among others be ascribed to the continiuous enlargement of the
advertising media portfolio before and during the financial crisis.
Likewise, the giant poster business of the blowUP Group performed very
strong with an organic growth of 51.8 percent compared to the second
quarter of the previous year. The Group's operational EBITDA increased by
41.3 percent to EUR35.7 million in the second quarter (Q2 2009: EUR25.3
million).
The net income for the first half of 2010, adjusted for special effects
such as additional expenses for the IPO was at EUR6.4 million compared with
EUR-4.4 million in the same period of the previous year. Including special
effects such as costs for the IPO, the Group's net loss amounts to EUR-5.2
million (H1 2009: EUR-15.5 million)
The free cash flow improved to EUR3.2 million (H1 2009: EUR -1.4 million)
despite significant disbursements made in the preparation process for the
IPO. Net debt declined slightly as of June 30, 2010, to EUR492.9 million
(December 31, 2009: EUR495.4 million). A decrease in investments to EUR6.6
million (H1 2009: EUR14.1 million) also contributed to this reduction in
net debts. Due to the inflow of around EUR287.8 million in fresh equity
capital in the wake of the IPO (before deducting transaction costs), the
Group's financial and asset situation will improve significantly in the
third quarter.
Business segments
Business activities of Ströer Group are structured into the three reporting
segments of Ströer Germany, Ströer Turkey and Other. The largest business
segment, Ströer Germany, boosted its sales revenue by 7.4 percent in the
first half of the year to EUR194.9 million (H1 2009: EUR181.5 million).
Operational EBITDA went up by as much as 23.3 percent to EUR48.2 million
(H1 2009: EUR39.1 million). 'We are very proud of the positive development
in our home market of Germany. This underscores that we have an extremely
successful business model and a very strong market presence,' says Ströer
Board Member Dirk Wiedenmann, who is responsible for the German operations.
The Ströer Turkey segment, which contributes to only 50 percent to the
Group, achieved sales revenue growth of 49.4 percent to EUR49.9 million (H1
2009: EUR31.4 million). Operational EBITDA increased as much as 83.1
percent to EUR12.6 million (H1 2009: EUR6.9 million). 'This very dynamic
development confirms our decision to use parts of the IPO proceeds to
increase the stake in our Turkish joint venture Ströer Kentvizyon from 50
to 90 percent. Now, we can benefit from the opportunities in Europe's
largest growth market even better than before,' says Udo Müller.
In the segment Other, in which activities in Poland are brought together
along with the giant poster business of the blowUP Group operating
throughout Europe, it was possible to raise the level of sales revenue by
13.4 percent to EUR23.8 million (H1 2009: EUR21.0 million). An essential
contribution in this regard was made by the prosperous giant poster
activities, which became a growth driver with an increase of 29.5 percent
compared to the first half of 2009. By contrast, operations in Poland
continued to be impacted by adverse market conditions; an increase in sales
revenue was attributable only to exchange rate factors. Operational EBITDA
in this segment increased by 11.1 percent to EUR1.4 million (H1 2009:
EUR1.2 million). 'With our planned acquisition of News Outdoor Poland, we
are intensifying the consolidation of the Polish market and reinforcing our
position, especially regarding our offer of national campaigns. We assume
that the revenue and financial result of the business in Poland will
improve substantially once the integration has been completed,' says Udo
Müller.
Product groups
The billboard product group again turned out to be the major contributor to
revenue in the first half of fiscal 2010 with EUR125.3 million and a share
of 51.7 percent (H1 2009: EUR111.5 million) of the total revenue. The
Street Furniture group contributed EUR59.5 million (H1 2009: EUR53.3
million), or 24.6 percent, to Group sales. The Transport product group
generated EUR34.3 million (H1 2009: EUR33.0 million), or 14.2 percent, of
total sales revenues. The group Other, which comprises among others event
media and additional purchases from third-party providers, contributed
EUR23.1 million (H1 2009: 20.4 million), or 9.5 percent, to the Group's
revenue.
Outlook
The focus for the second half of fiscal 2010 is on the implementation of
the growth initiatives announced in the IPO. This includes the stake
increase in the Turkish joint venture Ströer Kentvizyon from 50 to 90
percent, as well as the acquisition of the Polish out-of-home advertiser
News Outdoor Poland, which is currently pending approval by the relevant
cartel authorities. Both transactions are expected to be closed in
September this year. Ströer expects these acquisitions to result in
positive effects on sales revenue and on the operating result in the
relevant segments. Moreover, Ströer plans the marketing rollout of the
first nationwide network of digital advertising media for moving pictures
for the fourth quarter of 2010.
'The results for the first half-year demonstrate that we have chosen
exactly the right point in time for our IPO. Thus, we are ideally
positioned to continue to implement our growth strategy,' says Udo Müller.
For the third quarter of this year Ströer expects the substantially better
market trend, compared to last year, to continue. 'At present, the booking
status of the third quarter exceeds that of the same quarter of the
previous year. Accordingly, our outlook for the future is optimistic and we
expect the positive trends for the overall economy and for the advertising
industry to continue for the year,' says Alfried Bührdel.
Overview of key financials (IFRS)
In million EUR
Q2 Q2 Change H1 H1 Change
2010 2009 2010 2009
Sales revenue 137.1 118.7 +15.5% 242.2 218.1 +11.0%
Operational EBITDA 35.7 25.3 +41.3% 52.4 40.2 +30.3%
Operational EBITDA 26.1% 21.3% +4.8 21.6% 18.4% +3.2
margin points points
Net profit for 4.2 1.4 >100% -5.2 -15.5 n/a
period
About Ströer
Ströer Out-of-Home Media AG is a specialist for all forms of outdoor
advertising - ranging from classic posters, advertising in waiting areas
and mass transit to digital and interactive media. The company markets over
280,000 advertising spaces and is one of the leading out-of-home
advertisers in Europe: In terms of sales revenue, Ströer is the leader in
its core markets of Germany, Turkey and Poland (following the acquisition
of News Outdoor Poland). In these markets the company provides its clients
with extensive networks for nationwide advertising campaigns. The Ströer
Group has some 1,600 employees at over 60 locations. The company's
portfolio comprises a variety of different outdoor advertising products. In
terms of advertising media and street furniture, the company values top
quality, innovation and superior design. With its products, Ströer sets new
standards of design of public spaces. Ströer street furniture has already
received 26 international awards. More information about the company is
available at www.stroeer.com
Press contact:
Petra Kaiser
Ströer Out-of-Home Media AG
Corporate Communication
Ströer Allee 1 | D-50999 Cologne
Telephone: +49 (0)2236 - 96 45-246
Fax: +49 (0)2236 - 96 45-6246
E-Mail: pkaiser@stroeer.de
IR contact:
Stefan Hütwohl
Ströer Out-of-Home Media AG
Director Group Finance and Investor Relations
Ströer Allee 1 | D-50999 Cologne, Germany
Phone: +49 (0)2236 / 96 45-338
Fax: +49 (0)2236 / 96 45-6338
E-Mail: ir@stroeer.de
31.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Ströer Out-of-Home Media AG
Ströer Allee 1
50999 Köln
Deutschland
Phone: +49 (0)2236.96 45 0
Fax: +49 (0)2236.96 45 299
E-mail: info@stroeer.com
Internet: www.stroeer.de
ISIN: DE0007493991
WKN: 749399
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------