(Boursier.com) — JC Decaux fell 0.5% this Wednesday to 17.40 euros, while JP Morgan adjusted its target from 15 to 17 euros while remaining ‘underweight’. The group’s turnover in the 3rd quarter increased by 5.8% to 855 ME (808.4 ME in the 3rd quarter of 2022). On an organic basis (excluding the negative impact of 33.4 ME linked to the variation in exchange rates and the positive impact of 12.2 ME due to variations in scope this quarter), adjusted turnover was up 8.4%… Growth in advertising revenue, excluding sales, rentals and maintenance contracts for street furniture and advertising media, is up +8.7% organically in the 3rd quarter of 2023.
Over 9 months, adjusted organic revenue is up +8%. The published growth is +6.9% for an overall adjusted turnover of 2.44 billion euros over the period (2.283 billion euros in 2022).
Brokers take stock
Among the latest reactions from brokers, Citi has adjusted its target to 18.2 euros while remaining ‘neutral’ and Barclays is now targeting a price of 24 euros while remaining ‘overweight’.
“While the slow recovery continued in China, our revenue outside China in the 3rd quarter increased by +9.9% organically and exceeded its 2019 level for the first time. This performance was driven by the strong growth of digital, the solid recovery of transport and the continued growth of street furniture”, indicated Jean-François Decaux, Chairman of the Management Board and Co-Chief Executive Officer of JCDecaux, who added: “Regarding the 4 quarter, we now expect organic revenue growth of around +6%, driven in part by the continued recovery in transport.
The manager concluded: “We are convinced that outdoor advertising will continue to gain market share, in a fragmented advertising landscape where DOOH (Digital Out of Home) is the 2nd fastest growing media. As number one of the sector and the most digitalized global outdoor communications company, we believe that we are ideally positioned to take advantage of this digital transformation.
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