Remaining robust during the crisis: Ströer presents its Q1 2021 results
Consolidated revenue falls by 15% to EUR 312m due to the coronavirus pandemic (Q1 2020: EUR 368m) / Organic revenue decreases by 14.9% / EBITDA (adjusted) contracts by 37% from EUR 117m to EUR 73m
Ströer SE & Co. KGaA is presenting its results for the first quarter of 2021. Against the backdrop of the coronavirus pandemic and the ongoing three-month lockdown that dominated the reporting period, it is apparent that the diversification of our business in the context of the OOH+ strategy – combining the core OOH business with the related Digital & Dialog Media and DaaS & E-Commerce business segments – has provided us with greater stability during the crisis. Alongside the robust performance of content-based areas of business such as T-Online and the dialog marketing activities, Statista – the world’s leading business data platform – and Asam Beauty proved particularly strong in this challenging environment. These two companies, which are grouped in the DaaS & E-Commerce segment, generated organic growth of more than 30% in the first quarter of 2021.
Overall, the Group’s consolidated revenue saw a relatively moderate fall of 15% in the first three months of 2021, from EUR 368m to EUR 312m. Organic revenue contracted at a similar rate of 14.9%. At EUR 73m, EBITDA (adjusted) for the first quarter of 2021 was down by around 37% compared with the first quarter of 2020 (Q1 2020: EUR 117m), which had not yet been affected by the COVID -19 pandemic.
“The developments in the past quarters demonstrate that our diversified business model has brought us stability during the coronavirus crisis. Our OOH+ strategy and our focus on Germany are enabling us to limit the adverse impact of the coronavirus pandemic on our core out-of-home business and, at the same time, to unlock long-term opportunities and potential in our digital business lines, particularly Asam and Statista. This will allow us to make inroads into future areas of growth,” says Udo Müller, founder and Co-CEO of Ströer.
“Our market knowledge, our strict and disciplined approach to managing costs, and our highly dedicated employees are helping us to steer our way through the pandemic with a sense of optimism,” says Christian Schmalzl, Co-CEO of Ströer. “The start of the current financial year has been and remains challenging for our core business, but our experiences last year show that the OOH advertising business bounces back very quickly and we will therefore rapidly regain our strength. We are already seeing that our OOH advertising business is picking up pace in the second quarter, and the declining rates of infection and increasing levels of vaccination give us hope for the months ahead.”
In the first three months of 2021, the revenue of the OOH Media segment dropped by around 46% year on year both in reported and in organic terms, from EUR 180m to EUR 98m. The segment’s EBITDA (adjusted) fell by 56% to EUR 36m in the same period (Q1 2020: EUR 83m); the EBITDA margin (adjusted) was 37.0% (Q1 2020: 46.3%).
Digital & Dialog Media
In the first quarter of 2021, the Digital & Dialog Media segment generated robust revenue growth of 4.6% (organic) and 4% (reported), with revenue rising from EUR 154m to EUR 161m. EBITDA (adjusted) amounted to EUR 38m (Q1 2020: EUR 37m), a small year-on-year increase of around 3%. The EBITDA margin (adjusted) stood at 23.5% (Q1 2020: 23.7%).
DaaS & E-Commerce
The DaaS & E-Commerce segment generated organic revenue growth of around 37%, with revenue jumping from EUR 42m to EUR 56m in the first quarter of 2021. EBITDA (adjusted) in the first three months of the year came to around EUR 7m (Q1 2020: EUR 4m) and the corresponding EBITDA margin (adjusted) was 11.9% (Q1 2020: 9.0%).
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.