12.05.2016
Ströer SE & Co. KGaA DE0007493991
DGAP-News: Ströer SE & Co. KGaA: Best start to the year since our IPO: Ströer presents a strong first quarter 2016 (news with additional features)
DGAP-News: Ströer SE & Co. KGaA / Key word(s): Quarterly / Interim
Statement/Quarterly / Interim Statement
Ströer SE & Co. KGaA: Best start to the year since our IPO: Ströer presents
a strong first quarter 2016 (news with additional features)
12.05.2016 / 07:05
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
Best start to the year since our IPO: Ströer presents a strong first
quarter 2016
- Q1 consolidated revenue climbs 40% to EUR 226.2m
- Q1 operational EBITDA up a significant 72% to EUR 45.3m
- Adjusted profit up four-fold to EUR 20.1m
Cologne, 12 May 2016 Ströer confirms the preliminary results announced in
April for the first quarter of 2016. Revenue grew by 40% to EUR 226.2m in
the reporting period, with organic growth at over 11%. Operational EBITDA
soared 72% to EUR 45.3m. Adjusted EBIT also shot up, more than doubling to
EUR 25.9m.
Adjusted profit rose sharply, up more than four-fold to EUR 20.1m. Cash
flows from operating activities were up ten-fold to EUR 29.3m. The leverage
ratio stood at 1.4 at the end of the first quarter.
The overall good business development is being primarily driven by the
strong revenue growth in the Digital segment where the acquisitions made in
the past months, along with organic growth, had a significant effect This
upward trend was bolstered by the continued positive development in the OOH
Germany segment where business remains very robust.
"We got off to a remarkable and very positive start in fiscal year 2016.
All our financial KPIs have developed exceptionally well, and all segments
are contributing to this very good business performance. We are confident
that this positive momentum will continue in the second quarter," says Udo
Müller, CEO of Ströer. "We are confirming our current guidance of EBITDA of
more than EUR 280m and consolidated revenue of between EUR 1.1b and EUR
1.2b for 2016."
Operating segments
Digital
As in the prior year, the Ströer Digital segment, comprising the product
groups display, video and transactional, also recorded significant revenue
growth in the first quarter of the current fiscal year. The investments in
other digital business models (such as subscriptions and e-commerce), with
the revenue contributions recorded under the new transactional product
group, also contributed to robust revenue growth. In the Digital segment,
the display product group, driven in particular by the M&A activities of
the past 12 months, was the product group that contributed by far the most
to revenue. The transactional product group reported the strongest growth
among the three product groups. Its growth is coming from a relatively low
basis because the product group is in the development phase.
As Ströer is continually adding to and expanding its business, the segment
figures can only be compared with those of the prior year to a limited
extent. The integration of the newly acquired companies was driven forward
and synergies and economies of scale on both the revenue and cost side are
increasingly being leveraged, which is reflected in the higher operational
EBITDA margin.
Out-of-Home Germany
The Out-of-Home Germany segment was able to build on the excellent
performance in the prior year in the first quarter of 2016 and continued
its upward trajectory. In addition to the continued robust demand,
additional sales measures spurred on growth. The large formats product
group (previously the billboard product group), which targets both national
and regional customer groups, benefited above all from the continued robust
demand for traditional out-of-home products. Numerous other measures in the
national sales organization also boosted revenue. The ongoing expansion of
the regional sales force is also stimulating growth. Overall, this product
group reported revenue of EUR 48.0m (prior year: EUR 41.5m).
The street furniture product group, whose customers tend to have a national
or international focus, also grew noticeably. The product group capitalized
on the positive momentum in national marketing and won customers for this
product group, contributing a substantial revenue increase of EUR 4.2m to
EUR 33.3m.
The transport product group also made use of the positive momentum in the
segment - albeit at a lower level - and saw its revenue rise EUR 0.7m to
EUR 13.3m.
The other product group also reported marginal growth and was up EUR 0.8m
on the prior year to EUR 13.7m. This increase is from, among other things,
a further step-up in revenue with a large number of small, local customers.
These customer groups specifically are more interested in full-service
solutions, including the production of advertising materials, than large
cross-regional or national customers.
Higher revenue contrasted with considerably lower increases in cost of
sales. The cost increases mainly stemmed from revenue-related higher lease
payments and also higher running costs. On balance, the segment generated
operational EBITDA of EUR 24.9m, an increase of EUR 5.8m on the prior year.
The operational EBITDA margin stood at 23.0% (prior year: 19.8%).
Out-of-Home International
The OOH International segment includes the Turkish and Polish out-of-home
activities and the western European giant poster business of the blowUP
group. In the first quarter of 2016, the segment generated revenue of EUR
30.0m, a slight increase of EUR 0.4m year on year. All three sub-segments
further expanded their business activities, however, the geopolitical
tensions and the related weakness of the Turkish lira significantly
dampened revenue growth in Turkey. In local currency, however, revenue grew
7,8%. In relation to the Polish out-of-home business, the ongoing
challenging market environment and a slightly weaker Polish zloty had a
negative effect, however, marginal revenue growth was also reported here.
In addition, the western European giant poster business in particular
reported a tangible increase in revenue.
The segment's cost of sales only increased marginally. In this regard, the
revenue-induced increase in the blowUP group was almost fully offset by
exchange rate effects in Turkey and cost-saving measures in Poland.
Overall, the segment improved its operational EBITDA from EUR 1.3m in the
prior year to EUR 1.8m and saw its operational EBITDA margin rise 1.6
percentage points.
At 10 am CEST Ströer will be holding a conference call. The dial-ins for
analysts and press can be found below:
Analysts
Dial in number(s) DE: +4969222229043
UK: +442030092452
USA: +18554027766
Participant PIN code 78179920#
Audio Webcast: www.audio-webcast.com
Passwort: stroeer0516
Press
Dial in number(s) DE: +4969222229043
UK: +442030092452
USA: +18554027766
Participant PIN code 15713363#
Audio Webast: www.audio-webcast.com
Passwort: stroeer0516
The Group's financial figures at a glance
Q1 2016 Q1 2015 Change
Revenue1) EUR m 226,2 161,8 39,8%
by segment
Ströer Digital EUR m 93,2 41,7 > 100%
OOH Germany2) EUR m 108,3 96,1 12,6%
OOH EUR m 30,0 29,7 1,2%
International
by product
group
Billboard2) EUR m 72,5 65,2 11,1%
Street EUR m 37,5 33,5 11,9%
furniture2)
Transport2) EUR m 13,3 12,5 5,8%
Display3) EUR m 57,2 20,3 > 100%
Video3) EUR m 19,3 17,8 8,7%
Transactional3 EUR m 17,6 4,7 > 100%
)
Other2) EUR m 12,1 11,2 8,2%
Organic % 11,5 8,4
growth4)
Gross profit5) EUR m 68,7 40,8 68,2%
Operational EBITDA6) EUR m 45,3 26,3 72,2%
Operational EBITDA6) - % 19,7 15,9
margin
Adjusted EBIT7) EUR m 25,9 9,5 > 100%
Adjusted EBIT7) - margin % 11,3 5,7
Adjusted profit or loss EUR m 20,1 4,5 > 100%
for the period8)
Adjusted earning per EUR 0,38 0,10 > 100%
share9)
Profit or loss for the EUR m 5,1 -3,0 n.d.
period10)
Earning per share11) EUR 0,10 -0,06 n.d.
Investments12) EUR m 27,0 14,9 81,5%
Free cash flow13) EUR m -77,5 -22,0 < -100%
31 Mar 2016 31 Dec 2015 Change
Total equity and EUR m 1.565,3 1.458,8 7,3%
liabilities1)
Equity1) EUR m 665,3 674,8 -1,4%
Equity ratio % 42,5 46,3
Net debt14) EUR m 314,0 231,2 35,8%
Employees15) number 3.792 3.270 16,0%
1) Joint ventures are consolidated using the equity method - in
accordance with IFRS 11
2) Joint ventures are consolidated proportionately (management approach)
3) Revenue from the Ströer Digital segment and digital OOH revenue from
other segments
4) Excluding exchange rate effects and effects from the
(de-)consolidation and discontinuation of operations (joint ventures
are consolidated proportionately)
5) Revenue less cost of sales (joint ventures are consolidated using the
equity method - in accordance with IFRS 11)
6) Earnings before interest, taxes, depreciation and amortization
adjusted for exceptional items (joint ventures are consolidated
proportionately)
7) Earnings before interest and taxes adjusted for exceptional items,
amortization of acquired advertising concessions and impairment losses
on intangible assets (joint ventures are consolidated proportionately)
8) Adjusted EBIT before non-controlling interests net of the financial
result adjusted for exceptional items and the normalized tax expense
(joint ventures are consolidated proportionately)
9) Adjusted profit or loss for the period net of non-controlling
interests divided by the number of shares outstanding (55.282.499; in
Q1 2015: 48.869.784)
10) Profit or loss for the period before non-controlling interests (joint
ventures are consolidated using the equity method - in accordance with
IFRS 11)
11) Actual profit or loss for the period net of non-controlling interests
divided by the number of shares outstanding (55.282.499; in Q1 2015:
48.869.784)
12) Including cash paid for investments in property. plant and equipment
and in intangible assets (joint ventures are consolidated using the
equity method - in accordance with IFRS 11)
13) Cash flows from operating activities less cash flows from investing
activities (joint ventures are consolidated using the equity method -
in accordance with IFRS 11)
14) Financial liabilities less derivative financial instruments and cash
(joint ventures are consolidated proportionately)
15) Headcount of full and part-time employees (joint ventures are
consolidated proportionately)
About Ströer
Ströer SE & Co. KGaA is a leading digital multi-channel media company and
offers advertising customers individualized and fully integrated premium
communications solutions. In the field of digital media, Ströer is setting
forward-looking standards for innovation and quality in Europe and is
opening up new opportunities for targeted customer contact for its
advertisers.
The Ströer Group commercializes and operates several thousand websites in
German-speaking countries in particular and operates approximately 300,000
advertising media in the out-of-home segment. It has approximately 3,300
employees at over 70 locations. In fiscal year 2015, Ströer SE generated
revenue of EUR 824m. Ströer SE & Co. KGaA is listed in Deutsche Börse's
MDAX.
For more information on the Company, please visit www.stroeer.com.
Press contact Investor Relations
Marc Sausen Dafne Sanac
Ströer SE & Co. KGaA Ströer SE & Co. KGaA
Director Corporate Communications Head of Investor Relations
Ströer Allee 1 D-50999 Köln Ströer Allee 1 D-50999 Köln
Telefon: 0049 2236 / 96 45-246 Telefon: 049 2236 / 96 45-356
Fax: 0049 2236 / 96 45-6246 Fax: 0049 2236 / 96 45-6356
E-Mail: [email protected] E-Mail: [email protected]
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.
Contact:
Press contact:
Marc Sausen
Ströer SE & Co. KGaA
Director Corporate Communications
Ströer-Allee 1 | D-50999 Cologne
Telephone: +49 (0)2236 - 96 45-246
Fax: +49 (0)2236 - 96 45-6246
E-Mail: [email protected]
IR Contact:
Dafne Sanac
Ströer SE & Co. KGaA
Head of Investor Relations
Ströer-Allee 1 | D-50999 Cologne
Phone: +49 (0)2236 / 96 45-356
Fax: +49 (0)2236 / 96 45-6356
E-Mail: [email protected]
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=YFLVKGMOFH
Document title: Best start to the year since our IPO: Ströer presents a
strong first quarter 2016
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12.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Ströer SE & Co. KGaA
Ströer Allee 1
50999 Köln
Germany
Phone: +49 (0)2236.96 45 0
Fax: +49 (0)2236.96 45 299
E-mail: [email protected]
Internet: www.stroeer.de
ISIN: DE0007493991
WKN: 749399
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of News DGAP News Service
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