Ströer achieves a record level of revenue in 2023 and forecasts a strong first quarter with growth of up to 15% for OOH

The preliminary, unaudited financial results for Ströer SE & Co. KGaA in 2023 show that it had another successful year. Consolidated revenue improved by 8%, from EUR 1.77b to EUR 1.91b, making it the highest level of revenue in the Company's history. EBITDA (adjusted) was up by 5%, rising from EUR 541m to EUR 569m. Free cash flow (adjusted) soared by 60%, from EUR 50m to EUR 81m.

Ströer's core business of out-of-home advertising outperformed the advertising market as a whole in 2023, notching up revenue growth of 8% compared with 0.3% in the wider market. The fourth quarter was the strongest for the Company with end-of-year OOH business generating 13% revenue growth. Throughout 2023, digital OOH advertising was a key driver of revenue and growth. Increases in revenue of 28% in digital OOH advertising and over 99% in the programmatic public video business are glowing testimony to the long-term focus of our digital OOH strategy, the foundations of which we laid some 15 years ago. Growing digitalization is breaking down virtually all historical barriers to entry for potential advertisers considering the use of OOH marketing. Thanks to programmatic booking options, DOOH is increasingly being booked in combination with online media. Ticket sizes and targeting options are tremendously flexible and campaigns can be implemented almost in real time. OOH is undergoing a successful, digital-led transformation, elevating its status from an additional medium to a core medium in many media strategies.

The share of OOH in the overall advertising market rose to 8.6% in 2023, which was a new all-time record. Based on the long-term trend over the last 15 years, the OOH category has seen four times the average annual growth of the advertising market as a whole. Furthermore, DOOH has established itself as one of the strongest growth drivers in the overall advertising market. This trend is benefiting from advertising customers' increasing awareness of their carbon footprints. Out-of-home advertising, and DOOH in particular, are one of the most energy- and resource-efficient media in the media mix.

Besides the impressive performance of the DOOH business, all of Ströer's other segments also contributed to its continued and very satisfying revenue growth. AsamBeauty generated revenue growth of around 28% to a total of more than EUR 200m for the first time in 2023 (EUR 202m) – an important milestone for AsamBeauty, and for Ströer as a whole, particularly in view of our resolute focus on shareholder value.

"2023 was a great year for our Company and the exceptionally good fourth quarter with growth of 13% in OOH advertising demonstrates clearly how well our core business is doing. We saw many customers step up their volume of out-of-home advertising last year – and DOOH offerings were frequently the reason why, as digital out-of-home advertising enables our advertising customers to reach their target audiences in a quick, flexible, and targeted manner. Out-of-home advertising and DOOH, in particular, are one of the most energy-efficient and resource-efficient media in the overall media mix. The fact that the other segments have also made substantial contributions of 10% and about 20% respectively to our growth is affirmation of our OOH+ strategy," says Christian Schmalzl, Co-CEO of Ströer. "We expect to be able to continue OOH's strong fourth-quarter momentum from 2023 in the first quarter of 2024, and even increase it further. We are anticipating up to 15% organic growth in our core business. For 2024 as a whole, we expect that consolidated revenue growth will be noticeably higher than the organic revenue growth of 7.5% seen in 2023."

All figures for 2023 are preliminary and have not yet been signed off by the auditors. The final figures will be communicated when the annual report is published on March 25, 2024.

Disclaimer

This press release contains "forward-looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and the future business activities of Ströer or the Ströer Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the results of operations, profitability, performance or achievements of Ströer or the Ströer Group to be materially different from any future results of operations, profitability, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release and are based on numerous assumptions that may also prove to be incorrect. Ströer makes no representation and assumes no liability with respect to the fair presentation, completeness, correctness, adequacy or accuracy of the information and assessments contained herein. The information contained in this press release is subject to change without notice. It may be incomplete or abbreviated and may not contain all material information relating to Ströer or the Ströer Group. Ströer does not undertake any obligation to publicly update or revise any forward-looking statements or other information contained herein, neither as a result of new information, future events nor otherwise.