Annual report 2018: Ströer confirms record result

Ströer is confirming the preliminary results announced in February for fiscal year 2018: Annual revenue has grown by 23% from EUR 1.3b to EUR 1.6b with organic revenue growth of around 8%. Operational EBITDA increased by a very substantial 14%, up from EUR 475m to EUR 543m. Adjusted profit for the period developed very well once again, climbing 15% from EUR 173m to EUR 200m. The leverage ratio remained stable at 1.4.

Against the background of the new “Out-of-Home plus” strategy (OOH plus) and the positive business performance for the 25th consecutive quarter, which is expected to continue in the future, the Company is restructuring its current dividend policy and increasing the payout ratio to between 50% and 75% of adjusted profit and plans to propose to the shareholder meeting an increase in the dividend from EUR 1.30 to EUR 2.00. This adjustment reflects the expected, structural and sustainable growth of the German out-of-home advertising market and Ströer’s business model which is geared toward long-term growth with its successful “OOH plus” strategy. 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.

“The positive development of our key indictors over the past 25 quarters clearly demonstrates the stability and extremely low cyclicality of our business.” said Udo Müller, founder and Co-CEO of Ströer.

“Given our “OOH plus” strategy, we expect the structural upward trend for OOH, which is being driven by the ongoing digitalization, to continue for at least another 10 years with sustainable growth rates of around 5%,” said Christian Schmalzl, Co-CEO of Ströer.

Operating segments

OOH Media

Revenue in the OOH Media segment rose 12% from EUR 590m to EUR 664m (adjusted for IFRS 11) in fiscal year 2018. Overall, the segment lifted its operational EBITDA 5% in fiscal year 2018, up from EUR 295m to EUR 310m (adjusted for IFRS 11 and IFRS 16) and generated an operational EBITDA margin of 46.7% (prior year: 49.9% (adjusted for IFRS 11 and IFRS 16)). 

Digital OOH & Content

In fiscal year 2018, the Digital OOH & Content segment, including its core business DOOH (public video) saw its revenue climb by more than 7%, up from EUR 528m to EUR 567m. Operational EBITDA increased by more than 8% from EUR 179m to EUR 194m (adjusted for IFRS 16). The operational EBITDA margin came to 34.2% (prior year: 33.9% (adjusted for IFRS 16)).

Direct Media

Segment revenue for Direct Media climbed substantially in fiscal year 2018, up from EUR 190m to EUR 378m. Operational EBITDA increased from EUR 21m to EUR 55m (adjusted for IFRS 16). At 14.6%, the segment’s operational EBITDA margin improved tangibly (prior year: 11.0% (adjusted for IFRS 16)). 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.

See the Annual Report for further information:
http://ir.stroeer.com/websites/stroeer/English/5100/financial-reports.html

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.