Ströer presents record results for 2019 and looks back on a successful start to the new fiscal year
Consolidated revenue up 6% from EUR 1.5b to EUR 1.6b / Organic growth at over 7% / EBITDA (adjusted) up 6% from EUR 538m to EUR 570m / Adjusted profit for the period up 6% from EUR 199m to EUR 210m / Forecast for 2019 met in full
Ströer SE & Co. KGaA is once again presenting a record result for the year as a whole in its provisional figures for fiscal year 2019, as well as its 29th successive growth quarter, underscoring the success of the “OOH plus” strategy – the combination of the core OOH business and the supporting Digital OOH & Content and Direct Media segments. Consolidated revenue rose 6% from EUR 1.5b to EUR 1.6b. Organic growth stood at over 7%.
EBITDA (adjusted) grew by 6% in the fiscal year from EUR 538m to EUR 570m, reaching a new record high. Adjusted profit for the period developed in line with expectations, notching up 6% growth from EUR 199m to EUR 210m. The leverage ratio remained stable at 1.4.
The out-of-home advertising market has seen a structural upward trend over the past 15 years, growing sustainably and continually at both national and international level – as reflected in the current market development and recent studies. In terms of structural growth, out-of-home advertising, in particular, will benefit both directly and indirectly from the full digitalization of the media business. Ströer is playing to the strength of the OOH business with its “OOH plus” strategy, supported by the Digital OOH & Content and Direct Media segments. With this combination, the Company is in a position to consistently grow its relevance among its most important customers and thanks to its strong market share and long-term agreements on the German market, gain an above-average share in market growth in the coming decade.
“2019 was an excellent year for us. Ströer has never been better equipped, never better positioned and has never had better future prospects than today. With our “OOH plus” strategy, we are focusing on Europe’s largest advertising market – Germany, and consistently expanding our strong position across all segments. We clearly outperformed the German market in 2019, that is testimony to the success of our long-term forward-looking business strategy. Ströer has the best basis for long-term organic growth coupled with high profitability,” says Udo Müller, founder and Co-CEO of Ströer.
“Our public video network is and remains our growth driver. We are also gaining additional momentum through Ströer’s unique position in the local and regional OOH sales business, the increasing digitalization of out-of-home advertising and the strong growth in programmatic marketing. All this underscores our excellent position in the market and backs the positive outlook for Ströer,” says Christian Schmalzl, Co-CEO of Ströer. “We forecast revenue and earnings growth in the mid-single-digit percentage range for 2020 as a whole and are pleased to report a strong start to the new fiscal year.”
All figures for fiscal year 2019 are preliminary and unaudited. The final results and the dividend proposal for 2019 will be presented on 30 March 2020 when the annual report is published.
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.