Ströer presents strong first quarter 2019 results

Ströer SE & Co KGaA is continuing on the sustainable growth course of the past fiscal years and is presenting record profit once again in its quarterly statement Q1/2019. Quarterly revenue climbed 14% like on like, up from EUR 329m to EUR 374m. Organic revenue growth stood at 7.2%. EBITDA (adjusted) increased by 9% in the first quarter, up from EUR 108m to EUR 118m. Adjusted profit for the period also developed positively, up 8% from EUR 32m to EUR 34m. 

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. 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.

“Once again in 2019 we got off to successful start and are proud to present the best first quarter in the company’s history. Our order intake for the fiscal year as a whole is also very encouraging,” says Udo Müller, founder and Co-CEO of Ströer.

“After losing around EUR 10m in revenue and EUR 1m in EBITDA due to various divestments in Q1, we are extremely satisfied to be able to post revenue of EUR 374m and EBITDA of EUR 118m,” says Christian Schmalzl, Co-CEO of Ströer. “We expect the successful trend of the first quarter to continue in the second quarter and are anticipating organic revenue growth of around 7% for the first half of the year.”

Operating segments

OOH Media

Revenue in the OOH Media segment rose 7% from EUR 134m to EUR 143m in the first quarter of 2019. Overall, the segment increased its EBITDA (adjusted) by 2% in Q1 2019, up from EUR 62m to EUR 63m and generated an EBITDA margin (adjusted) of 43.8% (prior year: 46.0%).  

Digital OOH & Content

Revenue in the Digital OOH & Content segment grew from EUR 123m to EUR 125m in the first quarter of 2019, with organic revenue growth at 8%. EBITDA (adjusted) soared 25% from EUR 35m to EUR 44m, largely driven by the sustainable and profitable growth recorded by Public Video and Statista. The EBITDA margin (adjusted) stood at 35.2% (prior year: 28.6%).

Direct Media

Segment revenue for Direct Media climbed substantially in the first three months of 2019, up from EUR 76m to EUR 113m. At EUR 15m, EBITDA (adjusted) was stable compared with the prior year owing to portfolio effects. The EBITDA margin (adjusted) is 13.1% (prior year: 19.3%). As Ströer continued to add to and expand its performance-driven dialog marketing business in 2018, the segment figures, as a whole, can only be compared with those of prior years to a limited extent.

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.