Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on JC DECAUX SA. We currently have 5 research reports from 1 professional analysts.
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JC DECAUX SA
JC DECAUX SA
Poor Q4 ahead and revised FY16e guidance
04 Nov 16
JCDecaux announced Q3 adjusted revenues (i.e. before applying IFRS11) up 3.8% to €792.7m (+€28.7m; slightly under consensus expectations) and +1.5% organically (from a rather unfavourable basis of comparison as Q3 15 was up +4.3% organically). The quarter lfl performance was driven by Street Furniture (+6%; 43% total adjusted revenues), while Billboard improved by 1.1% and Transport (42% total) declined by 2.4% lfl, impacted by Asia Pacific and North America (Washington airports contract loss). A “significant slowdown” was also highlighted in Greater China (an important market for the group, generating c.19% of total revenues). Overall, the consolidated 9 months organic adjusted revenue growth reached +4.8% (with growth across the board) but management is guiding for a FY16e organic and adjusted top-line performance revised downward to “slightly below 3%”, with Q4 anticipated to decline organically by around 2%.
Hurt by London bus shelter contract delays and CEMUSA's integration...
17 Aug 16
Coming after a particularly strong Q1 16 (+10.5% on an organic basis) and in line with its guidance, JCDecaux produced a lower Q2 16 with an adjusted (before applying IFRS11, i.e. including its pro-rata share in companies under joint control) top-line growing at +3.4% organically. H1 16 adjusted consolidated revenues improved by c.€158m or 10.8% to €1,617.3m (+6.6% organic) after a negative foreign exchange impact of €41.6m and a positive perimeter change of +€103m. Adjusted operating profit declined by 7.4% (-€21.2m) to €264.5m, i.e. a … 320bp drop in profitability (16.4% to 19.6%) due to Street Furniture (unexpected -790bp to 22.4%...). Free cash flow at €98.3m was down 10% compared to H1 15. Within a slowing macro-economic environment and increased uncertainties in the aftermath of the Brexit vote in the UK, management is guiding for low single-digit Q3 adjusted organic revenue growth…
A strong start to the year… expected to slowdown
11 May 16
JCDecaux reported Q1 16 revenues up 15.3% on an adjusted basis (i.e. before applying IFRS11) to €748.5m and up 10.5% on an organic basis, i.e. above the group’s guidance of “around +9%”. Conversely, the guidance is for a lower trend in Q2 16e with organic growth expected at only around +3%.
Boosting top-line growth while delaying the operating leverage
13 Nov 15
JCDecaux announced satisfactory Q3 adjusted revenues (i.e. before applying IFRS11), up 14.1% to €764m and +4.3% organically. The quarter like-for-like performance was driven by Transport (+9.7%; c.45% total adjusted revenues), while Street Furniture (c.40% total adjusted revenues) rose by 3.2% and Billboard declined by 5.9%, still affected by difficult market conditions in Russia. Overall, the consolidated 9 months organic adjusted revenue growth reached +3.4% and management is guiding for FY15e organic and adjusted performance "above 3%", with Q4 "in line with the first 9 months". Going forward, revenue growth will significantly benefit from the recent contract wins (namely the London bus shelter contract starting next year) and acquisitions (i.e. CEMUSA as well as the recently-announced acquisition of the LatAm business of Outfront).
Pursuing its development in a volatile market with low visibility
25 Aug 15
JCDecaux produced mixed H1 15 results, namely characterised by a flat adjusted operating margin of 19.6% (H1 14: 19.7%). This was despite an improvement in the group's main profit contributor, the Street Furniture division (>3/4trs of consolidated adjusted operating profit in FY14) which positively improved its profitability over the period (up to 30.3% versus 29.2%). Consolidated organic revenues growth reached 2.9% (+11.9% reported, namely after a €104.6m positive forex impact and a +€12.3m perimeter impact) in line with the previous quarter's management comment that Q2 adjusted organic revenues growth would be "up low single-digit" (was indeed +2%), partly due to tough comparables and some slowdown in emerging countries. Management expects the Q3 adjusted revenues' organic performance to be in line with H1.
N+1 Singer - Morning Song 29-11-2016
29 Nov 16
Vp has reported another impressive set of interims, confirming strong growth in most markets and a positive outlook. Recent acquisitions are bedding in well and the full year outturn is set to exceed previous expectations (5%/6% EPS upgrades in FY17/FY18). The recent Capital Markets Day provided a reminder of Vp’s qualities (specialist focus, high returns, strong cash generation) and its growth potential, which in our view are not reflected in a modest <11x P/E rating. We firmly believe the shares are due a re-rating and see intrinsic value in excess of 800p.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Response to Government consultation
02 Dec 16
In the 2015 Autumn Statement, the Government stated the intention to remove the right to general damages for minor soft tissue injury claims with compensation for injuries such as whiplash now being made in medical care rather than cash. In addition, the Government proposed to raise the small claims limit for personal injury cases from £1,000 to £5,000.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
Horizon at FY18
28 Nov 16
Euromoney’s (ERM’s) final figures were modestly ahead of expectations, with the boost from favourable currency moves limiting the drag from those parts of the group identified for disinvestment. The year-end net cash position has built to £83.8m, a result of inherently strong cash generation. This has allowed a maintained dividend, with management indicating a good pipeline of acquisition opportunities. The FY16 figures confirm the initial phase of the strategy, with FY17 set to be a year of transition before the benefits kick in more strongly in FY18. The valuation is currently at a discount to other B2B media stocks, financial publishing groups and software companies in the financial vertical, marking time for further newsflow.
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.