Half Year 2024 JCDecaux SE Earnings Call Transcript
Key Points
- Revenue grew by 13.4% organically, driven by a 27.8% increase in digital revenue.
- Programmatic advertising saw a significant growth of 61.8%, now making up 9% of digital revenue.
- Operating margin increased by 28.7%, demonstrating strong operating leverage.
- Free cash flow generation improved significantly, up by 88.8% year-on-year.
- Strong performance in key markets like the UK, which grew by 29.8% organically.
- Revenue growth was below expectations despite the overall positive performance.
- Asia, particularly China, remains well below pre-COVID levels, impacting overall growth.
- Luxury and beauty sector showed signs of slowing down, which could affect future revenue.
- High disparities between markets, with some like France showing flat growth.
- Continued challenges in the transport segment, particularly in China, affecting profitability.
Good morning, everyone, and welcome to our 2024 Half Year Results Conference Call. The speakers today on this call will be Jean-Francois Decaux, Co-Chief Executive Officer, David Boyle, Chief Financial IT and administrative officer and others. Remo Canessa, Head of Investor Relations, are also attending today's conference call.
We are overall pleased with our H1 results as all key metrics have significantly improved year on year. Despite a challenging environment, we have enjoyed the strong momentum. Our revenue grew below expectation, increasing by 13.4% organically.
This performance was mainly driven by the continued strength of digital, which grew by 27.8% and now makes up 36.8% of our total revenue. Programmatic advertising grew by 61.8% year on year, reaching 9% of digital revenue. We have also strengthened our portfolio of contracts with, for example, the win of Shenzhen Airport and the renewal of the metal and buses have grown during the period. We have also made progress in our best-in-class ESG initiatives with our carbon
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