(AOF) – JCDecaux, the world leader in outdoor advertising, announces the signing of a global strategic partnership with the United Nations Development Program (UNDP) to support the “United Nations Joint Fund for the SDGs”, a Fund intended to accelerate the development of the Sustainable Development Goals (SDGs) throughout the world.
In contact with more than 850 million people daily, JCDecaux practices and promotes responsible external communication and acts in favor of Great Causes since its creation by offering numerous local or international associations and NGOs mobilizing in favor of the SDGs, campaigns on its street furniture and advertising devices.
Promoting responsible external communication is one of the six commitments of the CSR Strategy for 2030 unveiled last May by JCDecaux, implying in particular that since 2022, the Group’s subsidiaries undertake to apply its Code of Ethics for External Communication and support one or more UN SDGs.
Jean-Charles Decaux, Chairman of the Management Board and Co-Chief Executive Officer of JCDecaux, declared: “We are delighted with this solid and ambitious partnership forged with the United Nations Joint Fund for the Sustainable Development Goals (SDGs), which will benefit to many causes around the world around health, research, gender equality, the protection of the weakest and the fight against climate change.This partnership with the United Nations Joint Fund for the SDGs takes place today makes sense today because it allows us to enhance the visibility of the Sustainable Development Goals through our local publicity actions offered to associations and NGOs, which work to reduce poverty, protect the environment and promote peace and justice. ”
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Key points
– World leader in outdoor advertising created in 1964;
– Inventor group of the street furniture concept (52.4% of sales), present in transport advertising (32%) and large format billboards (15.6%);
– Worldwide presence, with revenues of €2.74 billion, split between continental Europe for 49%, Asia-Pacific for 25% (including China, 1
er
group market), the United Kingdom for 9% and North America for 6%;
– Business model broken down into 3 advertising activities with street furniture (52.5%), land and airport transport networks (30%) and large-format billboards as supports, with diversification into bike-sharing ( No. 1 worldwide);
– Capital held at 64.67% by the holding company of the founding family, with a supervisory board of 12 members, the management board being co-chaired by Jean-François and Jean-Charles Decaux;
– Solid financial position with net debt of €977m at the end of June against €1.6bn in equity.
Challenges
– Three-pronged strategy: internal growth through contract wins, strategic acquisitions and combined use of digital, data and programmatic;
– Innovation strategy integrated into the business model (portfolio of 1410 patents), open and focused on: a unique and proprietary solution for the management and distribution of digital campaigns / the use of innovative technologies for the development of platforms -Data Solutions , OOH Planner, OOH Measurement, VIOOH / secure cloud-based infrastructures; ;
– Proactive environmental strategy, activities in France being carbon neutral since 2021: electricity consumption 100% from renewable energies, eco-design and circular economy, LED electricity consumption and intelligent lighting by modulation according to presence humans;
– Strategic and capitalistic alliance, with Displayce (Demand Side Platform) leader in complete and combinable programmatic solutions with DOOH inventories;
– Long-term contracts (15 years on average) ensuring recurring revenue, independence from advertisers, the top 10 representing less than 13% of turnover and presence in 12 of the 15 cities most contributing to global GDP estimated 2030;
– Acceleration of digital growth (more than 1/3 of revenues) driven by the deployment of the VIOHH programmatic sales platform, connected to 36 DSP platforms.
Challenges
– Resistance to continued lockdowns in major Chinese cities and the global economic downturn due to the Russia-Ukraine war;
– After the return of Street Furniture activities to pre-Covid levels, expectation of the full recovery of the Transport branch, still impacted by the confinements in China.
Sector analysis Communication and Advertising
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