Ströer generates strong growth in the first six months, bucking the trend in the advertising market
Programmatic marketing and the digital transformation of out-of-home advertising continue to be the major disruptive growth drivers in the core business
Ströer SE & Co. KGaA has published its results for the first half of 2023. Against a backdrop of persistently challenging market conditions, the media group increased its consolidated revenue by 7%, from EUR 810m to EUR 865m, and outperformed the contracting German advertising market by more than 10 percentage points. Organic revenue growth was at a comparable level of 7.3%.
The revenue of the OOH Media segment rose by 5.7% in the first half of 2023, from EUR 339m to EUR 358m. Driven in particular by strong growth in the Digital OOH product group, which was up by 24% (31% in Q2), the segment comfortably surpassed the performance of other advertising categories, with TV down by 9.1% and online down by 3.4% according to data from Nielsen. This represents ever clearer evidence of the structural change that is taking place in the German advertising market, particularly the shift towards out-of-home advertising with its flexible, high-reach products. The market share of OOH rose to 10.2% in June 2023. The Group’s EBITDA (adjusted) grew by 3% in the first six months of 2023, from EUR 220m to EUR 227m.
The robust earnings performance and the strong growth in a contracting market highlight once again the resilience of Ströer’s OOH+ strategy, which combines the core OOH business with the related Digital and Dialog Media business lines. With revenue growth of over 50%, programmatic public video is disrupting the media industry and driving structural change.
The biggest drivers of growth besides Digital Out-of-Home (DOOH) were the Dialog business and Asam in the first half of 2023. Asam’s positive trajectory is the result of its strategic positioning as a German beauty brand in all relevant sales channels – e-commerce, telesales, and brick-and-mortar retail. In the rapidly expanding international business, especially in China where almost 15% of revenue is generated, Asam’s German heritage is proving its worth. A bestseller has been established there that is a reliable mainstay of growth. In Germany, too, a leading drugstore chain has become a new sales partner and will stock a broad product range next year.
These are ideal conditions for launching the previously announced divestment process for our non-core assets Asam. As an initial step toward optimizing the portfolio, the sale will crystallize the net asset value of this business while also highlighting even more clearly the strength of the core business.
“Asam’s sound performance is an excellent basis from which to take our first step in the value crystallization process, i.e. the sale of Asam. This step will create significant value for our shareholders and underscore the net asset value of our core business. By retiring the roughly 1.1 million shares that we purchased in our share buyback program, we are underlining our focus on value. That is our utmost priority,” says Christian Schmalzl, Co-CEO of Ströer. “At the same time, we are seeing how – despite the challenging conditions in the wider advertising market – digital out-of-home advertising is growing and gaining market share quarter on quarter, and that trend is currently accelerating once more.”
The revenue of the OOH Media segment rose by 6% in the first six months of 2023, from EUR 339m to EUR 358m. The segment’s EBITDA (adjusted) rose slightly to EUR 150m (H1 2022: EUR 147m) and the EBITDA margin (adjusted) was 41.9% (H1 2022: 43.4%).
Digital & Dialog Media
In the first six months of 2023, the Digital & Dialog Media segment also generated encouraging revenue growth. Revenue rose by 6% from EUR 352m to EUR 372m, driven largely by a 16% increase in revenue in the Dialog product group. At EUR 64m, the segment’s EBITDA (adjusted) was lower than the prior-year figure of EUR 78m. The EBITDA margin (adjusted) stood at 17.2% (H1 2022: 22.1%).
DaaS & E-Commerce
The revenue of the DaaS & E-Commerce segment jumped by 21%, from EUR 142m to EUR 171m, in the first six months of 2023. Asam’s revenue growth was particularly impressive (+29%). The segment’s EBITDA (adjusted) rose almost threefold in the first half of the year to around EUR 27m (H1 2022: EUR 10m) and the EBITDA margin (adjusted) climbed significantly from 7.1% (H1 2022) to around 16% (H1 2023).
This press release contains "forward-looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and the future business activities of Ströer or the Ströer Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the results of operations, profitability, performance or achievements of Ströer or the Ströer Group to be materially different from any future results of operations, profitability, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release and are based on numerous assumptions that may also prove to be incorrect. Ströer makes no representation and assumes no liability with respect to the fair presentation, completeness, correctness, adequacy or accuracy of the information and assessments contained herein. The information contained in this press release is subject to change without notice. It may be incomplete or abbreviated and may not contain all material information relating to Ströer or the Ströer Group. Ströer does not undertake any obligation to publicly update or revise any forward-looking statements or other information contained herein, neither as a result of new information, future events nor otherwise.