Ströer Out-of-Home Media AG: Ströer gets off to a modest start to the new fiscal year
May 16, 2012 7:00 AM
Ströer Out-of-Home Media AG / Key word(s): Quarter Results
- Consolidated revenue down 3.5% to EUR 118.6m
- Organic growth at -2.9%
- Operational EBITDA falls from EUR 16.2m to EUR 9.3m
- Contract portfolio bolstered after winning tenders in Braunschweig and Salzgitter
Cologne, 16 May 2012 Ströer Out-of-Home Media AG was faced with an increasingly difficult environment in the first quarter of 2012. In particular, the major international and national customers retained their bookings noticeably in the first quarter. As anticipated, the Group was unable to top the very high prior-year results. Consolidated organic revenue was down 2.9% (prior year: up 9.7%). Taking into account in particular the exchange rate effects in comparison to the same quarter of the previous year, this led to a 3.5% decrease in consolidated revenue to EUR 118.6m (prior year: EUR 122.9m). The reduction in revenue and the start-up costs for the expansion of the advertising rights portfolio were reflected in operational EBITDA, which fell to EUR 9.3m (prior year: EUR 16.2m) and brought the operational EBITDA margin down to 7.8% (prior year: 13.2%).
Overall, the post-tax loss narrowed slightly from EUR 6.7m in the prior-year quarter to EUR 6.2m due to the improvement in the financial result. This was largely driven by the reduction in interest expenses on the back of the adjusted key borrowing terms agreed in the prior year and by now the considerable recovery in the most important foreign currencies for Ströer in 2012. The loss for the period adjusted for exceptional items widened from EUR 1.2m to EUR 6.2m due to the weaker operating performance.
'The tendency toward cautious bookings by the major national and international customers and the difficult market environment shaped the first quarter. Last year, we raised the bar with the nationwide roll-out of our Out-of-Home-Channel in Germany's train stations. We are systematically continuing our digitalization of out-of-home media and have now set up the two largest LCD displays in Germany in the main train stations of Hamburg and Düsseldorf. This is allowing us to gradually expand our portfolio of solutions in the moving-picture market for our customers,' said Udo Müller, CEO of Ströer. 'The two concessions won by tender also underscore the confidence that municipalities have in our high level of performance.'
Ströer invested EUR 8.0m in property, plant and equipment, intangible assets and equity interests in the first quarter (prior year: EUR 12.0m). Operating cash flow is generally shaped by significant lease prepayments in the first quarter and came to EUR -16.0m (prior year: EUR -10.1m) due to seasonal factors. This led to a marginal year-on-year change in the free cash flow (EUR -23.9m; prior year: EUR -22.0m). The Group's net debt was down 4.5% from EUR 347.8m as of 31 March 2011 to EUR 332.3m.
 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 before non-controlling interests net of the financial result adjusted for exceptional items and the normalized tax expense
 Adjusted profit or loss for the period net of 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 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.
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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|