Ströer Out-of-Home Media AG: Ströer continues its growth path
Mar 29, 2012 7:15 AM
Ströer Out-of-Home Media AG / Key word(s): Final Results
- Consolidated revenue up 8.6% in 2011 to EUR 577.1m
- At 6.2%, organic growth in Germany outpaces entire advertising market
- Operational EBITDA increases by 3.9% to EUR 132.3m
- Operating cash flow more than triples to EUR 95.0m
- Net debt down by 4.9% to 2.3 times operational EBITDA
- Contract portfolio strengthened by winning 12 tenders, among other factors
- Performance study confirms high reach of Out-of-Home-Channel
Cologne, 29 March 2012 Ströer Out-of-Home Media AG continued on its growth path in fiscal year 2011, mainly due to its strong performance in Germany. The Group's revenue increased by 8.6% from EUR 531.3m in the prior year to EUR 577.1m. Adjusted for increases in investments and exchange rate effects, organic growth in the Group amounted to 4.8% (prior year: 7.5%). Ströer's revenue growth also lifted its key performance indicator, operational EBITDA, by 3.9% in 2011 to EUR 132.3m (prior year: EUR 127.3m). Operational EBITDA represents earnings before interest, taxes, depreciation and amortization adjusted for one-time income and expense effects (such as the cost of reorganization measures or changes in the investment portfolio).
The operational EBITDA margin was 22.9% after 24.0% in the prior year due to upfront costs for expanding the advertising media portfolio in Turkey. Exchange losses of around EUR 15m reduced earnings for the period to EUR -3.6m overall, compared with a high profit for the period of EUR 58.1m in the prior year, which was due in particular to special effects relating to the increase in the portfolio of investments in Ströer Kentvizyon. Adjusted for these and similar measurement effects, profit for the period was up by 21.4% to EUR 40.3m (prior year: EUR 33.2m), confirming Ströer's strong performance.
In 2011, the Ströer Group reduced its net debt by 4.9% to 2.3 times (prior year: 2.5 times) operational EBITDA. This effect is primarily due to the sharp increase in free cash flow, i.e., the difference of EUR 38.0m between operating cash flow and investment funds (prior year: EUR -68.2m). Operating cash flow improved in particular, more than tripling from EUR 30.3m in 2010 to EUR 95.0m.
'We are shaping the future of out-of-home advertising. Our consistently strong performance in winning concessions gives us a firm basis to continue driving forward quality and innovation in out-of-home advertising. We are delivering concrete proof of this by expanding our digital activities - in particular by rolling out our Out-of-Home-Channel network in train stations and shopping malls - and therefore creating the third pillar in the moving-picture market,' said Udo Müller, CEO of Ströer. 'This will allow us to leverage growth opportunities for the future because digitalization is setting the pace and direction of the media market and is taking out-of-home advertising into a new and promising dimension.'
In the fiscal year, Ströer invested heavily in the quality and capacity of its advertising media portfolio to provide additional growth potential for out-of-home advertising. The main focus of investments here was on premium products in Germany, such as the Out-of-Home-Channel (OC), which is the largest digital moving-picture network with a nationwide reach installed by Ströer in German train stations. The acquisition of ECE flatmedia GmbH, a provider of digital marketing concepts for shopping malls, will enable Ströer to expand its OC network to malls. In 2011, the Company also drove forward the roll-out of Premium Billboards and significantly expanded its advertising media capacity in Turkey. Overall, Ströer increased its investments by 82.6% in the fiscal year to EUR 52m (prior year: EUR 28.5m).
The investments in the Out-of-Home-Channel are already bearing fruit. A performance study published today by Ströer proves that the reach achieved by its Out-of-Home-Channel in train stations is comparable with that of medium-sized German television stations (VOX, kabel eins and RTL II). The representative study credits the new digital out-of-home advertising network with a monthly advertising media reach of 58% among the young target group of 14 to 29-year-olds, and 41% among 14 to 49-year-olds. The study strengthens the Out-of-Home-Channel's position in the moving-picture market. The market research institute Enigma/GfK surveyed more than 5,000 people from October to December.
Ströer's three product groups - billboard, street furniture and transport - recorded substantial revenue growth in 2011. At 20.9%, the transport product group saw the highest increase across the Group and generated revenue of EUR 89.2m (prior year: EUR 73.8m). This positive development was driven primarily by high-margin digital advertising media in Germany. In the domestic market alone, revenue from the transport product group was up by 22.1% to EUR 87.9m (prior year: EUR 72.0m).
 Retrospectively restated due to the completion of the purchase price allocation for Ströer Kentvizyon Reklam Pazarlama A.S. and Ströer City Marketing Sp. z.o.o.(formerly News Outdoor Poland Sp. z.o.o.)
 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
[5 ]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 before non-controlling interest net of the financial result adjusted for exceptional items and the normalized tax expense
 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)
 Profit or loss for the period before non-controlling interests
 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)
 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
 Headcount (full and part-time employees)
Financial figures of the segments
For more information on the Company, please visit www.stroeer.de.
End of Corporate News
29.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
|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|