In This Article:
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Organic Revenue Growth: 9.7% for 2024.
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Group Revenue: Above 2019 levels.
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Operating Margin: EUR764.5 million, up 15.3% year-on-year.
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Net Income: EUR258.9 million, up 23.8% year-on-year.
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Free Cash Flow: EUR231.9 million.
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Q4 Organic Growth: 3.6%, above guidance.
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Street Furniture Revenue Growth: 8.3% for 2024.
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Transport Revenue Growth: 13.1% for 2024.
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Billboard Revenue Growth: 6.6% for 2024.
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Digital Revenue Growth: 21.7% organically, increasing its share to 39% of total revenue.
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Programmatic Revenue Growth: 45.6% in 2024, reaching EUR145.9 million.
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Net Debt: Reduced from EUR1 billion to EUR756 million.
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Dividend Proposal: EUR0.55 per share.
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Operating Margin Rate: 19.4%, up by 80bps.
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EBIT Margin: 10.2% or 9% excluding APG capital gain.
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CapEx: EUR324 million, decreased by EUR30 million from 2023.
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Debt Leverage: Less than one time operating margin.
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Liquidity: Over EUR2 billion.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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JCDecaux SE (JCDXF) reported a strong organic revenue growth of 9.7% for 2024, with double-digit increases in key financial indicators.
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The company achieved a record operating margin of EUR764.5 million, growing by 15.3%, and a net income of EUR258.9 million, up by 23.8%.
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Digital revenue grew by 21.7% organically, increasing its share of total revenue from 35.3% in 2023 to 39% in 2024.
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Programmatic advertising revenue grew strongly by 45.6% in 2024, reaching EUR145.9 million, and is expected to continue growing.
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JCDecaux SE (JCDXF) plans to resume its dividend policy, recommending a dividend of EUR55 cents per share, reflecting strong financial results and a robust financial structure.
Negative Points
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The macroeconomic and geopolitical environment remains challenging, with a lack of recovery in China, which is still below 2019 levels.
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Transport revenue, although rebounding, has not yet recovered its 2019 revenue share of more than 40%, currently at 35.3%.
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The company's largest market, China, now accounts for around 10% of total revenue, down from 18% in 2019.
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Despite the conversion of some premium sites to digital, analog revenue only grew by 3.2% this year.
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The company faces competitive pressures, as evidenced by the loss of some contracts, such as the Hong Kong tramway and certain street furniture contracts in Rio de Janeiro.
Q & A Highlights
Q: Could you provide more color on the environment in China and your expectations for 2025? Also, what is driving the improvements in free cash flow, and how confident are you in achieving your 2026 target? A: The business in China is stable but not recovering significantly. We have adjusted some contracts in good faith with our partners. We hope for recovery in 2025 but can't confirm it yet. Regarding free cash flow, our revenue growth exceeded expectations, positively impacting cash flow. We are confident in achieving the EUR300 million target for 2026, driven by revenue momentum and controlled OpEx.