The French group displays and street furniture JCDecaux has continued in the third quarter to suffer the crisis of global advertising market, with sales down 12.9% to 431.8 million euros a year.
At constant scope and exchange rates, the decline in sales is 12.1%, said Wednesday in a statement. In the first nine months, sales were down 13.2% to 1.357 billion euros against 1.563 billion a year ago.
The decline “reflects the effects of economic recession on the global advertising market,” said Jean-Francois Decaux, CEO, quoted in the press.
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The group now expects a decline in sales annual organic “about 12.5%” throughout 2009.
It anticipates an operating margin in 2009 slightly higher than that which was reached in the first half of the year. In the first half, operating margin was 18%, against 26% a year earlier.
The three divisions of the group have seen their sales decline: the furniture fell by 12.7%, advertising in transport by 9.5% and display 18%.
Most European markets were down to two digits of their organic sales in the third quarter reflect particular market conditions very difficult in the United Kingdom and to a lesser extent in France.
“We do not yet see signs of sustainable recovery in the advertising market. The activity is still volatile,” said Mr. Decaux.
“We remain focused on our plan of cost savings and a selective allocation of our investments to maximize the impact of improved economic conditions on the operating margin and cash flow of the group,” says he said.
The global advertising market, affected by the economic crisis, expected to fall 9.9% this year, down more than expected, to low back next year and consolidated in 2011, according to the latest estimates of the agency ZenithOptimedia.
Tags: Francois Decaux, global advertising market, JCDecaux, Mr. Decaux, ZenithOptimedia