German DooH

Ströer AG stays on track

Ströer Out-of-Home Media AG published its figures for the first nine months in 2011. Consolidated revenue was up 12.8 percent year on year to 416.3 million Euro, partly owing to the additions made to the investment portfolio in the prior year. Excluding the changes in the consolidated group and effects from exchange rate differences, the Group recorded organic revenue growth of 5.8 pecent (prior year: 9.9%). Number one growth drivers were the segments Germany and Digital.

Only two weeks ago, Ströer acquired ECE flatmedia, an ECE subsidiary and leading provider of digital brand communication and sales promotion in malls. With this Ströer enhanced its commitment in the field of the moving images market.

Forecast Ströer’s management is confirming the revenue and margin forecasts made in the report on the first six months of 2011. The company therefore still expects to see organic revenue growth for the Group in the mid-single-digit percentage range, which will make it difficult to maintain the operational margin at the prior-year level.

„We are still on track and strategically investing in solutions to drive forward our business,“ said Udo Müller, CEO of Ströer Group, at today’s presentation of the quarterly figures in Cologne. „We are currently seeing digitalization reshape the market: instead of thinking in terms of TV, print, online and poster advertising, we will soon be talking about static pictures and moving pictures in buildings or outdoors. Our nationwide installed networks of digital screens in Germany go beyond traditional out-of-home advertising: We see evolving a third pillar in the moving-picture market, alongside TV and the internet.“

Operational EBITDA improved 12.3 percent, margin was on a par with the prior-year margin of 20.3 percent. Apart from the weaker Turkey segment, all group entities contributed to the improved margin. The sharp increase of operating cash flow enabled Ströer AG to improve the financial position despite the significant boost of investments to 36 million Euro (prior year: EUR 11.8m). The majority of the means flew to the roll-out of growth projects such as the Out-of-Home Channel and the Premium Billboard.

The Ströer Germany segment generated revenue of 307.7 million Euro in the first nine months of 2011, an increase of 5 percent year on year. Organic growth even came to 7.3 percent. The digital out-of-home media business grew revenues continued to grow dynamically with a sales growth by more than 50 percent, and is thus driving forward the expansion of operations in Germany, while boosting the level of bookings for high-margin premium products. In particular, the top 200 advertisers have contributed to the structural changes on the German advertising market increasing the market share of out-of-home advertising to 4.5 percent in terms of gross advertising revenues until September (prior year: 4.1%).