10.11.2016
Ströer SE & Co. KGaA DE0007493991
DGAP-News: Ströer continues on its profitable growth course in Q3
DGAP-News: Ströer SE & Co. KGaA / Key word(s): Quarterly / Interim Statement
Ströer continues on its profitable growth course in Q3
10.11.2016 / 07:06
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
Ströer continues on its profitable growth course in Q3
- Revenue grows 38% in the first nine months of 2016
- Operational EBITDA rises 46% from EUR 122m to EUR 177m in the first
nine months of 2016
- Adjusted earnings climb 68% in the first nine months of 2016, from EUR
53m to EUR 89m
Cologne, 10 November 2016 Ströer continues on its profitable growth course
once again in the third quarter of 2016. Revenue in the first nine months
of 2016 rose by 38.4% from EUR 553.2m to EUR 765.7m. This is attributable
to strong growth in the OOH Germany and Digital segments. The Ströer Group
recorded organic revenue growth of 7.4% in the first nine months of 2016.
Despite ongoing investments in local sales operations in Germany as well as
further organic growth investments in the digital business, operational
EBITDA soared by 45.7% from EUR 121.8m to EUR 177.5m. The operational
EBITDA margin thus grew from 21.6% in the prior year to 22.9% at the end of
the third quarter of 2016.
Adjusted earnings for the first nine months of 2016 also developed
exceedingly well, increasing by 67.7% from EUR 53.0m to EUR 88.9m. Free
cash flow before acquisitions rose by 40.5% in the first nine months from
EUR 37.3m to EUR 52.4m. In spite of considerable growth investments and
acquisitions, the leverage ratio improved to 1.5 at the end of the third
quarter of 2016 (prior year: 1.7).
"Ströer has performed exceptionally well in the first nine months - we
recorded strong increases in revenue and earnings. Our focus lies on
organic growth opportunities in the online, mobile and out-of-home segments
which are seeing the highest growth. Based on the annual meetings currently
being held with our key accounts and agencies, we expect business to also
continue to develop well in the coming year," says Udo Müller, CEO of
Ströer. "We are confirming our current guidance of operational EBITDA of
more than EUR 280m and consolidated revenue of EUR 1.15b for 2016. For
2017, we forecast consolidated revenue of between EUR 1.2b and EUR 1.3b and
operational EBITDA of more than EUR 320m."
Operating segments
Digital
The Ströer Digital segment was able to achieve a further significant
increase in revenue across all product groups in the first nine months of
the fiscal year. This included the most recent investments in the new
Transactional product group.
Revenue in the Digital segment was up from EUR 139.9m to EUR 333.4m in the
first nine months of 2016 including organic revenue growth of 9.6%. Thanks
to Ströer's digital strategy, the company is increasingly able to leverage
synergies and economies of scale on both the revenue and cost side. At the
same time, Ströer is also investing in the expansion of the fast-growing
business models already in its portfolio. Operational EBITDA increased from
EUR 37.8m to EUR 89.7m in the first nine months of 2016. The operational
EBITDA margin came to 26.9%.
Based on the ongoing business expansion in the digital segment, the figures
can only be compared with those of the prior year to a limited extent.
Out-of-Home Germany
Operating business in the Out-of-Home Germany segment saw very robust
growth once again in the third quarter. Revenue for the first nine months
rose 8.6% from EUR 324.8m to EUR 352.8m.
In terms of product groups, large formats in particular, which focuses on
national as well as regional customer groups, grew significantly once
again. This development is predominantly due to sustained high demand for
traditional out-of-home products. On the one hand, a series of targeted
national sales measures provided positive growth impetus, which was coupled
with the ongoing expansion of the regional and local sales organization on
the other.
Operational EBITDA improved by 15.2% from EUR 78.7m to EUR 90.6m. The
Operational EBITDA margin grew from 24.2% to 25.7%.
Out-of-Home International
The OOH International segment includes the Turkish and Polish out-of-home
activities and the western European giant poster business of the blowUP
group. The segment's revenue dipped 7.1% in the first nine months of the
fiscal year, decreasing from EUR 105.7m to EUR 98.1m. This reduction is
mainly attributable to the weak Turkish lira and the macroeconomic
situation in Turkey, with the latter affecting the third quarter in
particular. The market in Poland also continues to see little movement. The
organic revenue for the OOH International segment was down 1.4% in the
first nine months.
In light of the above, operational EBITDA also decreased and stood at EUR
11.9m in the first nine months (prior year: EUR 15.3m) and the operational
EBITDA margin came to 12.1% in the first nine months (prior year: 14.5%).
Ströer is anticipating a rebound effect in the fourth quarter which should
lead to low single-digit growth for the year as a whole in local currency.
THE GROUP'S FINANCIAL FIGURES AT A GLANCE
Q3 Q3 Change 9M 2016 9M 2015 Change 2016 2015 Revenue1) EUR m 263.3 189.8 38.7% 765.7 553.2 38.4% by segment Ströer EUR m 123.1 51.7 > 100% 333.4 139.9 > 100% Digital OOH EUR m 118.3 110.7 6.8% 352.8 324.8 8.6% Germany2) OOH EUR m 28.3 32.6 -13.1% 98.1 105.7 -7.1% Internat- ional by product group Large EUR m 78.0 76.3 2.2% 243.3 232.3 4.7% formats2) Street EUR m 35.6 36.9 -3.5% 112.1 111.7 0.4% furniture 2) Transport EUR m 15.3 13.6 12.1% 44.2 40.2 9.9% 2) Display3) EUR m 58.6 22.5 > 100% 169.6 62.9 > 100% Video3) EUR m 23.1 22.9 0.7% 68.2 61.3 11.3% Transacti EUR m 41.8 6.9 > 100% 97.9 18.2 > 100% onal3) Other2) EUR m 14.1 13.7 3.5% 40.0 36.8 8.8% Organic % 5.1 10.3 7.4 9.1 growth4) Gross profit5) EUR m 82.2 51.6 59.1% 241.2 157.8 52.9% Operational EUR m 62.9 43.4 45.0% 177.5 121.8 45.7% EBITDA6) Operational % 23.6 22.5 22.9 21.6 EBITDA6) margin Adjusted EBIT7) EUR m 36.7 25.4 44.5% 112.6 70.4 60.0% Adjusted EBIT7) % 13.8 13.2 14.5 12.5 margin Adjusted profit EUR m 28.4 19.2 47.4% 88.9 53.0 67.7% or loss for the period8) Adjusted EUR 0.48 0.40 19.9% 1.60 1.08 47.4% earnings per share9) Profit or loss EUR m 13.1 6.7 96.9% 40.8 24.8 64.2% for the period10) Earnings per EUR 0.21 0.15 42.3% 0.73 0.51 43.4% share11) Investments EUR m 71.7 49.5 45.0% (before M&A transactions)12) Free cash flow EUR m 52.4 37.3 40.5% (before M&A transactions)13) 30 Sep 31 Dec Change 2016 2015 Total equity and EUR m 1,709.4 1,469.3 16.3% liabilities1) Equity1) EUR m 655.1 679.6 -3.6% Equity ratio % 38.3 46.3 Net debt14) EUR m 405.3 231.2 75.3% Employees15) number 4,421 3,270 35.2% 1) Joint ventures are consolidated using the equity method - in accordance with IFRS 11 2) Joint ventures are consolidated proportionately (management approach) 3) Revenue from the Ströer Digital segment and digital OOH revenue from other segments 4) Excluding exchange rate effects and effects from the (de-)consolidation and discontinuation of operations (joint ventures are consolidated proportionately) 5) Revenue less cost of sales (joint ventures are consolidated using the equity method - in accordance with IFRS 11) 6) Earnings before interest, taxes, depreciation and amortization adjusted for exceptional items (joint ventures are consolidated proportionately) 7) Earnings before interest and taxes adjusted for exceptional items, amortization of acquired advertising concessions and impairment losses on intangible assets (joint ventures are consolidated proportionately) 8) Adjusted EBIT before non-controlling interests net of the financial result adjusted for exceptional items and the normalized tax expense (joint ventures are consolidated proportionately) 9) Adjusted profit or loss for the period net of reported non- controlling interests divided by the number of shares outstanding (55,282,499; in Q3 2015: 48,869,784) 10) Profit or loss for the period before non-controlling interests (joint ventures are consolidated using the equity method - in accordance with IFRS 11) 11) Profit or loss for the period net of reported non-controlling interests divided by the number of shares outstanding (55,282,499; in Q3 2015: 48,869,784) 12) Including cash paid for investments in intangible assets and property, plant and equipment and cash received from the disposal of intangible assets and property, plant and equipment (joint ventures are consolidated using the equity method - in accordance with IFRS 11) 13) Cash flows from operating activities less investments (before M&A transactions) (joint ventures are consolidated using the equity method - in accordance with IFRS 11) 14) Financial liabilities less derivative financial instruments and cash (joint ventures are consolidated proportionately) 15) Headcount of full and part-time employees (joint ventures are consolidated proportionately)About Ströer Ströer SE & Co. KGaA is a leading digital multi-channel media company and offers advertising customers individualized and fully integrated premium communications solutions. In the field of digital media, Ströer is setting forward-looking standards for innovation and quality in Europe and is opening up new opportunities for targeted customer contact for its advertisers. The Ströer Group commercializes and operates several thousand websites in German-speaking countries in particular and operates approximately 300,000 advertising media in the out-of-home segment. It has approximately 4,400 employees at over 70 locations. In fiscal year 2015, Ströer SE generated revenue of EUR 824m. Ströer SE & Co. KGaA is listed in Deutsche Börse's MDAX. For more information on the company, please visit www.stroeer.com. Disclaimer This press release contains "forward looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including opinions, estimates and projections regarding Ströer's or the Ströer Group's financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Ströer or the Ströer Group to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. These forward looking statements speak only as of the date of this press release and are based on numerous assumptions which may or may not prove to be correct. No representation or warranty, express or implied, is made by Ströer with respect to the fairness, completeness, correctness, reasonableness or accuracy of any information and opinions contained herein. The information in this press release is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning Ströer or the Ströer Group. Ströer undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result of new information, future events or otherwise. Contact: Press contact: Marc Sausen Ströer SE & Co. KGaA Director Corporate Communications Ströer-Allee 1 | D-50999 Cologne Telephone: +49 (0)2236 - 96 45-246 Fax: +49 (0)2236 - 96 45-6246 E-Mail: [email protected] IR Contact: Dafne Sanac Ströer SE & Co. KGaA Head of Investor & Credit Relations Ströer-Allee 1 | D-50999 Cologne Phone: +49 (0)2236 / 96 45-356 Fax: +49 (0)2236 / 96 45-6356 E-Mail: [email protected] --------------------------------------------------------------------------- 10.11.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: Ströer SE & Co. KGaA Ströer Allee 1 50999 Köln Germany Phone: +49 (0)2236.96 45 0 Fax: +49 (0)2236.96 45 299 E-mail: [email protected] Internet: www.stroeer.de ISIN: DE0007493991 WKN: 749399 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 518635 10.11.2016
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