Against the background of the new “Out-of-Home plus” strategy (OOH plus) and the positive business performance for the 25th consecutive quarter, which is expected to continue in the future, the board of management and the supervisory board of the Ströer Group at today’s meeting resolved to restructure the Group’s current dividend policy.
The current payout ratio of 25% to 50% of adjusted profit is set to be increased to between 50% and 75% and an increase in the dividend from EUR 1.30 to EUR 2.00 will be proposed to the shareholder meeting. This adjustment reflects the expected, structural and sustainable growth of the German out-of-home advertising market and Ströer’s business model which is geared toward long-term growth with the successful “OOH plus” strategy.
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.
“We have been presenting continually improved KPIs for 25 quarters. This positive development underlines the success of our “OOH plus” strategy – the combination of the core OOH business and supporting segments. In order to allow our shareholders to participate appropriately in our success, we will propose a dividend increase of EUR 2.00 per share at this year’s shareholder meeting,” says Udo Müller, founder and Co-CEO of Ströer.
“Ströer remains on its growth course. Our extensive tech and content know-how from our digital segments also bolsters the digitization of our core OOH business – a unique advantage for Ströer. We are thus creating the conditions for our Company to continue to grow profitably in an increasingly digital world,” says Christian Schmalzl, Co-CEO of Ströer. “For full-year 2019, we expect a positive revenue and earnings development in the mid-single-digit percentage range.”
The provisional figures for fiscal year 2018 presented a few weeks ago show record results for Ströer SE & Co. KGaA, underscoring the success of its “OOH plus” strategy – the combination of the core OOH business and the supporting Digital OOH & Content and Direct Media segments.
The audited figures for fiscal year 2018 will be presented when the annual report is published on 27 March 2019.
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.