JCDecaux SE (JCDXF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone, and welcome to our 2025 half-year results conference call. The speakers on this call will be Jean-Charles Decaux, Co-CEO, David Bourg, Chief Financial IT and Operations Officer, and myself. Rémi Grézard, Head of Investor Relations, is also attending today's conference call. Moving to slide four of the presentation, You can see that our unique and well-diversified premium out-of-home global media footprint recorded in the first half a very strong robust revenue growth and a strong operating leverage in a very challenging and uncertain macroeconomic and geopolitical environment despite a mid-single-digit decline in China. Our revenue increased by 3.4% year-on-year in H1 2025 and by 3.3% on an organic basis driven by digital out of home, which rose by 12.2% to nearly 40% of total revenue, with programmatic digital out of home up an impressive 25.2%. Key operational indicators showed strong double-digit growth, with over 75% of our revenue growth translating into operating margin. As a result, we increased our operating margin by 17.6%, with a year-over-year improvement of 200 basis points as a percentage of revenue, a significant step up. Our EBIT before impairment charges grew by 11.6% to 125.6 million euros and even more by 114.7% when excluding non-recurring items. Finally, our operating cash flows also rose by 10.7% but David will cover that in more detail in just a moment. On slide five, you can see that we recorded an organic growth rate of 3.3% in the first half of 2025. We had a very strong first quarter with 5.5% organic growth, and Q2 followed through nicely. In fact, we delivered a record second quarter revenue growing by 1.6% organically, right in line with our guidance of low single-digit growth. If we exclude the one-off impacts fro...