Annual report 2019: Ströer confirms results

Ströer is confirming the preliminary results announced at the beginning of March for fiscal year 2019 with annual revenue up 6% from EUR 1.5b to EUR 1.6b and organic revenue growth at over 7%. EBITDA (adjusted) also notched up more than 6% growth from EUR 538m to EUR 570m. Adjusted profit for the period developed positively once again, up 6% from EUR 199m to EUR 210m. The leverage ratio remained stable at 1.4.

The positive performance in fiscal year 2019 reflects the strengths of the OOH+ strategy, which focuses on the core OOH business supported by the Digital OOH & Content and Direct Media segments. With this globally unique combination, Ströer is in a position to consistently grow and secure its relevance among its most important customers and, thanks to its strong market share and long-term agreements on the German market, maintain its position even in times of crisis, such as during the current global coronavirus pandemic.

Nonetheless, a reliable forecast of business development for 2020 is not possible at this time. For this reason, the supervisory board and board of management have decided to postpone the annual general meeting, including the resolution on appropriation of profit, to the second half of 2020.

“The first quarter of 2020 has seen a seamless continuation of the outstanding year 2019, becoming Ströer’s 30th consecutive record quarter. “With its OOH+ strategy, Ströer is optimally positioned even in this challenging environment. With the strong performance we are currently seeing in our non-OOH segments, which are to some extent benefiting from the current crisis, we can largely compensate for the difficult phase anticipated in our core business given the restrictions in place on public life. Thanks to our experience of past crises, such as the financial crisis of 2008, we took very swift action to future proof the Company. For example, around 90% of our employees are fully operational working from home. With our unique OOH+ and non-OOH business structure, our sound financial position and our robust cash flow, we are in a solid position to weather any foreseeable crisis scenario spanning over a period of more than three years,” says Udo Müller, founder and Co-CEO of Ströer.

“Despite the pleasing start to fiscal year 2020, we have, in light of the uncertainties surrounding the further development of the coronavirus pandemic, taken early action to future proof Ströer and swiftly implemented an extensive list of measures. Products such as news, email, statistics and call centers are very much in demand given the current situation and thus bolster Ströer’s good position even times of the coronavirus. Our leverage ratio at the end of 2019 stood at just 1.44, well below the actual target ratio of around 2.5,” says Christian Schmalzl, Co-CEO of Ströer.

Operating segments

OOH Media

Revenue in the OOH Media segment rose 6.8% from EUR 664m to EUR 709m in fiscal year 2019. Overall, the segment increased its EBITDA (adjusted) by 4.6% in fiscal year 2019, up from EUR 310m to EUR 324m and generated an (adjusted) EBITDA margin of 45.7% (prior year: 46.7%).

Digital OOH & Content

In fiscal year 2019, revenue in the Digital OOH & Content segment, including the core element DOOH (public video) rose 3.8%, up from EUR 567m to EUR 588m. EBITDA (adjusted) was up almost 9% from EUR 194m to EUR 211m. The (adjusted) EBITDA margin stood at 35.9% (prior year: 34.2%).

Direct Media

Revenue in the Direct Media segment lifted by 12.6% in fiscal year 2019, up from EUR 303m to EUR 341m. Against this backdrop, EBITDA (adjusted) climbed from EUR 50m to EUR 54m. The (adjusted) EBITDA margin stood at 15.8% (prior year: 16.5%).

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.