Record results: Ströer presents strong third quarter results

Ströer SE & Co. KGaA is continuing on the sustainable and profitable growth course of the past fiscal years. Revenue in the first three quarters of 2019 was up 7%, from EUR 1,113m to EUR 1,187m. Organic revenue growth stood at 7.3%. (Adjusted) EBITDA also increased by 7% in the first nine months, up from EUR 364m to EUR 389m. Adjusted profit for the first nine months also developed positively, rising some 6% from EUR 119m to EUR 126m. 

With its “Out-of-Home plus” strategy (OOH plus) – the combination of the core OOH business and the supporting Content and Direct Media segments – Ströer is focusing on the German market and thus has a solid basis for long-term organic growth as well as high profitability. The extensive tech and content know-how from Ströer’s digital segments bolsters the digitalization of the core OOH business. With OOH and online, Ströer operates in the fastest growing media channels in the German advertising market. Ströer expects the structural upward trend for OOH, which is being driven mainly by the ongoing digitalization, to continue for at least another 10 years with growth rates of around 5%. In order to ensure growth at the upper end of the expected structural market growth and increase the utilization of its infrastructure inventory, Ströer, as the first nationally operating OOH player, has developed a new growth strategy “OOH plus,” which enables better and above all more direct customer access as well as expected revenue growth that is well in excess of the market average.

“OOH remains the fastest growing media channel in the German advertising market. Our OOH plus strategy allows us to leverage this momentum. The positive development of our key financials is testimony to our success. The digitalization of our advertising media and the strong growth in demand for programmatic Out-of-Home products contributed to our success in the third quarter,” says Udo Müller, founder and Co-CEO of Ströer.

“We saw a good performance and strong, organic growth again in the third quarter. Our organic growth in the first nine months of the year totaled 7.3%. We are optimizing the structure of the Direct Media segment, focusing on the high-margin sales areas that contribute directly to our core business,” says Christian Schmalzl, Co-CEO of Ströer. “Given the strong order intake for the fourth quarter, we expect organic revenue growth at the upper end of the 3% to 7% guidance range, that we previously communicated, for the fiscal year as a whole.”

Operating segments

OOH Media

Revenue in the OOH Media segment rose 7% from EUR 461m to EUR 495m in the first three quarters of 2019. Overall, the segment increased its (adjusted) EBITDA by 5% in the same period, up from EUR 213m to EUR 224m, with an (adjusted) EBITDA margin of 45.2% (prior year: 46.1%).

Digital OOH & Content

Revenue in the Digital OOH & Content segment grew from EUR 394m in the prior year to EUR 400m in the first nine months of 2019, with organic revenue growth at just under 8%. The consistently positive development of the DOOH business more than offset the effects from the sale of a number of non-core activities such as Mobile Performance and Twiago in the first quarter and allowed the segment to further sharpen its profile. (Adjusted) EBITDA increased by 12%, up from EUR 122m to EUR 136m, with public video and Statista making the main contribution. The (adjusted) EBITDA margin stood at 34.1% (prior year: 30.9%).

Direct Media

Segment revenue for Direct Media climbed from EUR 270m to EUR 318m in the first three quarters of 2019. Organic revenue growth stood at 16%. The positive sales development was largely driven by the good performance of direct sales operations. Against the background of the continued integration and optimization of processes in this segment, (Adjusted) EBITDA was at around EUR 42m (prior year: EUR 43m), the (adjusted) EBITDA margin was 13.2% (prior year: 15.9%). 

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.