JCDecaux stock falls after Q2 revenue misses estimates

Investing.com -- JCDecaux SA stock dropped 3% after the outdoor advertising company reported second-quarter revenue that missed analyst expectations and issued a downbeat outlook for the third quarter.

The French outdoor advertising giant posted revenue of €1,010 million in the second quarter, representing organic growth of 1.6% YoY, which fell short of both UBS estimates of €1,020 million and consensus expectations of €1,025 million. The company had previously guided for low single-digit organic revenue growth.

For the first half of 2025, JCDecaux reported revenues of €1,868 million, up 3.3% organically from the same period last year. The company’s adjusted operating margin for H1 came in at €307 million, 9% ahead of consensus estimates, primarily due to adjusted contract terms, particularly in China.

By division, Street Furniture revenue increased 3.6% organically to €529 million in Q2, while Transport grew 0.8% to €343 million. Billboard revenue declined 3.7% to €138 million. Digital Out of Home (DOOH) showed strong growth of 12.2% in H1, representing approximately 40% of group revenue compared to 36.8% in H1 2024.

Looking ahead, JCDecaux expects low single-digit negative organic growth in the third quarter, citing a negative comparison base impact of approximately 410 basis points linked to the 2024 Paris Olympic Games and UEFA Euro Events, with no improvement expected in China, where revenues declined mid-single digits in H1.

"We think consensus estimates will be broadly unchanged as lower organic growth will be offset by lower costs. However shares could still trade down given the weaker organic growth trends," UBS analysts noted.

Net debt increased to €912.9 million at the end of June 2025, up from €756 million at the end of December 2024, primarily due to seasonal activity fluctuations and dividend distributions to shareholders.

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