Ströer Out-of-Home Media AG: Ströer AG on track: Revenue up 12.8% in first nine months of 2011
Nov 15, 2011 7:00 AM
Ströer Out-of-Home Media AG / Key word(s): Quarter Results
Ströer AG on track: Revenue up 12.8% in first nine months of 2011
- Consolidated revenue at EUR 416.3m
- Consolidated organic growth at 5.8%
- Increase in profitability of 12.3% at operational EBITDA to EUR 84.0m
- Germany drives business with organic growth of 7.3%
- Advances in digital solutions: Acquisition of ECE flatmedia enlarges Ströer's digital portfolio and expands significantly its reach in Germany
- Full-year forecast confirmed: organic growth for the Group around the mid-single-digit range
Cologne, 15 November 2011 Ströer Out-of-Home Media AG continued on its growth course in the first nine months of 2011. Consolidated revenue was up 12.8% year on year to EUR 416.3m (prior year: EUR 369.1m), partly owing to the additions made to the investment portfolio in the prior year. Excluding the changes in the consolidated group and effects from exchange rate differences, the Group recorded organic revenue growth of 5.8% (prior year: 9.9%). Operational EBITDA improved 12.3% in the same period to EUR 84.0m (prior year: EUR 74.8m). At 20.2%, the operational EBITDA margin was on a par with the prior-year margin of 20.3%. Apart from the weaker Turkey segment, all group entities contributed to the improved margin. The sharp increase of operating cash flow (EUR 54.6m; prior year: EUR 6.6m) enabled Ströer AG to improve the financial position despite the significant boost of investments to EUR 36.0m (prior year: EUR 11.8m). The majority of the means flew to the roll-out of growth projects such as the Out-of-Home Channel and the Premium Billboard.
'We are still on track and strategically investing in solutions to drive forward our business,' said Udo Müller, CEO of Ströer Group, at today's presentation of the quarterly figures in Cologne. 'We are currently seeing digitalization reshape the market: instead of thinking in terms of TV, print, online and poster advertising, we will soon be talking about static pictures and moving pictures in buildings or outdoors. Our nationwide installed networks of digital screens in Germany go beyond traditional out-of-home advertising: We see evolving a third pillar in the moving-picture market, alongside TV and the internet.'
Revenue in the billboard product group was up 16.0% to EUR 223.4m in the first nine months (prior year: EUR 192.6m) and largely reflects changes in the investment portfolio. As a result, revenue from this product group increased in particular in Turkey, up 71.8% to EUR 46.8m.
Until now, more than 800 Out-of-Home Channel screens were installed at central train stations such as in Berlin, Hamburg, Munich, Cologne, Stuttgart, Düsseldorf and Frankfurt am Main. This unique digital network was incorporated into our regular marketing activities on 1 April. The further expansion of the out-of-home channel is largely on track with 900 to 1,000 screens due to be installed by the end of the year. The network will be completed in the following fiscal year. At the same time, Ströer set up almost 600 premium billboards across Germany as part of its quality and capacity initiative during the period from January to September.
Ströer's management is confirming the revenue and margin forecasts made in the report on the first six months of 2011. The company therefore still expects to see organic revenue growth for the Group in the mid-single-digit percentage range, which will make it difficult to maintain the operational margin at the prior-year level.
 Organic growth: excluding exchange rate effects and effects from the (de-) consolidation and discontinuation of operations
 Revenue less cost of sales
 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
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
 Adjusted EBIT net of the financial result adjusted for exceptional items and the normalized tax expense
 Calculated as adjusted profit for the period divided by the number of shares outstanding after the IPO
 Calculated as actual profit or loss for the period divided by the number of shares outstanding after the IPO
 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
 Cash ﬂows from operating activities less cash ﬂows from investing activities
 Financial liabilities less derivative financial instruments and cash
Key financials by segment
For more information on the Company, please visit www.stroeer.com.
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|Company:||Ströer Out-of-Home 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|