Ströer Out-of-Home Media AG: Ströer delivers record results in 2010
Apr 12, 2011 7:21 AM
Ströer Out-of-Home Media AG / Key word(s): Final Results<
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Ströer delivers record results in 2010
- Revenue increase by 13.1% to EUR 531.3m
- Disproportionate operational EBITDA increase by 27.2% to EUR 127.3m
- Market leadership position in Turkey and Poland expanded through acquisitions
- Successful implementation of the first digital outdoor advertising media network in Germany
- tnsEmnid study: out-of-home media are highly accepted
Cologne, 12 April 2011. For Ströer Out-of-Home Media AG ('Ströer'), the 2010 financial year was the most successful since the founding of the company in 1990. Revenue for the group, one of the leading outdoor advertising providers in Europe with its headquarters in Cologne, exceeded the EUR 500m mark for the first time and grew by 13.1% to EUR 531.3m compared to the prior year (EUR 469.8m). Operational EBITDA (earnings before interest, taxes, depreciation and amortisation, adjusted for exceptional items) increased even faster by 27.2% to EUR 127.3m (2009: EUR 100.0m) for an operational EBITDA margin of 24.0%. Earnings per share after the deduction of all costs came in at EUR 1.32 compared to EUR 0.03 in the prior year.
'We are proud to say that all operating segments contributed to these record numbers,' Udo Müller, co-founder and CEO of the Ströer Group, said in Cologne today. 'The IPO provided the basis for securing the leading position of the Ströer Group in the European outdoor advertising market. By investing in Turkey and Poland, we established our business in two strategically important growth markets. We also took ambitious measures to advance digitalisation in our sector and increasing the share of out-of-home media in the overall ad mix.'
An exclusive study we prepared together with tnsEmnid in March revealed that out-of-home media is highly accepted. 92% of the people interviewed said that they were not bothered by billboard advertising. Approximately 90% of the interviewees saw no issues with ads on means of transport or digital outdoor advertising. By contrast, about 50% of the respondents regarded TV commercials as annoying. 34% actually liked billboard advertising; this figure is even higher with people up to 34 years old (43%). Digital out-of-home media was well-received by 31% of the interviewees (36% of people aged up to 34). 21% of all respondents and 29% of the target group up to 34 years would support more digital outdoor advertising.
The growth in revenue recorded in 2010 is proof of the increasing attractiveness of outdoor advertising. Assuming the full consolidation of the Turkish joint venture Ströer Kentvizyon since 2009, group revenue even rose to EUR 561.8m in 2010. Consolidated organic growth according to this definition totalled 9.4%.
New equity of EUR 287.9m from the proceeds of the IPO (before the deduction of transaction costs) significantly improved the assets and financial position of Ströer. Net debt was reduced considerably by 35.4% to EUR 320.1m (2009: EUR 495.4m). The equity ratio is now at 30.1%. Profit adjusted for exceptional items increased by 97.0% to EUR 33.2m (2009: EUR 16.8m). Cash flow from operating activities, adjusted for special effects related to the IPO and acquisitions, grew to EUR 57.7m and underscores the major improvement in results.
Operating segments and growth initiatives
All three segments contributed to the record results of the Ströer Group thanks to their organic growth.
Ströer Germany, the largest segment, recorded revenue of EUR 409.9m. Revenue increased by 4.2% compared to the prior year (EUR 393.3m). The Ströer Group is therefore continuing its positive growth trend after exceeding the overall performance in the out-of-home media sector during the crisis year of 2008. At EUR 109.5m with growth of EUR 14.2m (14.9%), the home market also made the biggest contribution to consolidated operational EBITDA (2009: EUR 95.3m).
Revenue in the Turkish business of the Ströer Group developed positively thanks to the dynamic performance of the Turkish media industry and the full consolidation of the organization as of 1 September after Ströer Group increased its investment from 50% to 90%. Revenue of this segment rose by more than 100% to EUR 68.6m (2009: EUR 33.5m). Operational EBITDA also increased by more than 100%. This performance figure came in at EUR 21.9m in 2010 compared to EUR 8.6m in the prior year.
The third segment of the Ströer Group includes activities in the European giant poster business (blowUp Group) and in Poland. Positive results in this segment are mainly due to giant poster activities under the umbrella of the blowUp Group. Revenue generated in Poland also developed positively, yet all growth was achieved due to consolidation and currency effects.
The Ströer Group was able to achieve significant revenue increases in all product groups over the course of the 2010 financial year. At 15.2% the billboard product range posted the strongest growth and also the highest volume with revenue of EUR 274.7m (2009: EUR 238.5m). The street furniture product range with waiting halls, columns and City Guide information systems generated similar revenue growth at 14.0%. Here revenue for 2010 came in at EUR 134.6m (2009: EUR 118.1m).
The 2010 financial year offered impressive proof that the Ströer growth strategy is successful. Ströer Management is confident for full year 2011 benefiting from a favourable macro picture, new projects and structural growth. The Group should deliver another year of decent organic revenue enhancement around a mid to high-single-digit mark potentially accompanied by a slight margin improvement.
In the first quarter of 2011 Ströer expects an organic revenue growth rate of 8% for the Group fuelled by a strong German and blowUP performance. Also the Turkish business will contribute to this organic growth at a rate similar with the Group figure.
Due to effects of ramp-up and overhead investments particularly in the first 6 months of 2011 Ströer currently expects a slight progression of the operational margin beyond the 2010 level for the full year.
The Groups's financial figures at a glance
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
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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|