JCDecaux Revenue Down 34% in 4Q 2020

JCDecaux’s revenues are slowly recovering from Covid but don’t expect to see a full recovery until the last half of 2021.  Here are the results from the JCDecaux 2020 earnings release and JCDecaux 2020 earnings presentation.  Billboard Insider translated euros to dollars using a 1 euro to 1.2 dollar exchange rate.

  • Revenue declined by 34% to $890 million for the fourth quarter of 2020 as a rebound in the company’s China business was unable to offset weakness in Europe and North America.  Here’s what the company’s revenue declines look like over the past four quarters.

JCDecaux Change in Adjusted Organic Revenues by Quarter in 2020

  • Cashflow (Earnings before interest and taxes and amortization and provisions) declined from $891 million for the full year 2019 to $19 million for the full year 2020.
  • The balance sheet is healthy.  Cash is $2.0 billion versus debt of $3.3 billion.  The company has no material maturities of debt before mid 2023.

Board Chairman and Co-CEO Jean-Charles Decaux expects weak results to continue in the first quarter of 2021: 

As far as Q1 2021 is concerned, we expect an adjusted organic revenue decline at around -40%, due to ongoing and stronger mobility restrictions introduced in some large countries, such as UK and Germany, while a double digit rebound in domestic Chinese advertising revenue (excluding Hong Kong) is very encouraging. While we do not expect to recover our 2019 revenue level in 2021, we believe that the rebound will be strong when audiences return to pre-Covid levels.

Insider’s take:  JCDecaux’s heavy reliance on transit and airport advertising means that it will be the last of the big public out of home companies to recover from the impacts of covid.  The company has the liquidity to see things through.

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