The rise of digital is strengthening the advertising display giant, affected by the pandemic.
Display advertising giant JCDecaux benefited strongly from the rebound in travel and travel in the first half and was almost back to breaking even, but health restrictions in China again caused the group’s sales to fall in the region. Over the first six months of the year, it generated revenue of 1.4 billion euros, up 37% year-on-year (+32% at constant exchange rates and scope), thanks to an acceleration in the second quarter. Its net loss was reduced to 11.7 million euros, compared to -161 million euros over the same period in 2021 and -254.9 million a year earlier, at the height of the Covid-19 pandemic.
“This performance is based on the strong growth of digital and the solid recovery of our roadside display activities, in particular street furniture, whose turnover returned to pre-Covid levels in the first half.“, commented the chairman of the executive board and co-CEO Jean-Charles Decaux, quoted in a press release.
Consequences of Chinese zero-Covid
However, JCDecaux remains affected by the strategy “zero covidfrom China, which involves imposing temporary lockdowns and limiting local and international travel. “All geographies grew strongly in the first half of 2022, with the exception of Asia-Pacific which recorded a single-digit decline on an organic basis (-5.8%) due to the greater weight of the Transport business and local mobility restriction measures, particularly in China in the second quarter“, detailed Jean-Charles Decaux.
Advertising in places of transportremained strongly impacted by mobility restrictions in China and by a number of public transport journeys still below the pre-Covid level“, he specified. The group continues to limit its costs and expects for the 3rd quarter growth in adjusted organic turnover, the indicator favored by the company, of around +7%, according to its press release.
SEE ALSO – EDF suffers an exceptional loss of 5.3 billion euros in the first half