JCDecaux reports 77% profit slump

JCDecaux, the world's second largest outdoor advertising company, has today reported a 77% slump in profits in 2009 to €24.5m (£22m) and warned that it sees no firm signs of a sustained recovery this year. Operating profit fell by 28.7% year on year to €392m (£357m) and revenue by 11.5% to €1.9bn (£1.7bn). The fall in organic revenue, which excludes the impact of acquisitions and currency effects, was 10.9%. Operating margin fell from 25.4% in 2008 to 20.4% last year. The figures nevertheless beat most analyst expectations. JCDecaux said that it expects organic revenue growth of 5% in the first quarter this year as the market has shown signs of recovery. "The more positive advertiser sentiment we reported in January 2010 has continued during the first quarter of this year," said Jean-Francois Decaux, chairman of JCDecaux. "However the market continues to be characterized by reduced visibility and it remains unclear whether this is the beginning of a sustained advertising recovery." Operating profits at JC Decaux's billboard operation were the hardest hit, down 46.1% year on year, with its transport ads division down 32.6% and the street furniture division, which includes sites such as bus stops, down 24.8%. • To contact the MediaGuardian news desk email [email protected] or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication".