Outdoor advertising companies Affichage, JCDecaux and Clear Channel Outdoor gave an insight into their figures.Clear Channel Outdoor (CCO) and JCDecaux are not only the largest outdoor advertising companies in the world, both also have a connection to Switzerland. JCDecaux holds a 30 percent stake in Affichage and is its joint venture partner in Europlakat International. CCO, on the other hand, with its subsidiary Clear Channel Outdoor Plakanda (CCOP), is the second-largest outdoor advertiser in this country, far behind Affichage. Together with Affichage, CCOP was also involved in joint poster research, but dropped out a year and a half ago and is now working on Project More.CCO, the world's largest outdoor advertiser, reported a profit of 145.4 million US dollars for 2006, 2.5 times more than in the previous year. This was made possible, among other things, by a 9 percent increase in sales to 2.9 billion dollars, with a 10 percent increase in the home market of the USA, which grew more strongly than in other countries (plus 7 percent). Conversely, the Group's expenditure rose by only 6 percent to 2 billion dollars. CCO does not publish figures for individual countries and no more detailed information was available on business performance in Switzerland. Nevertheless, last year CCOP acquired Felice Display, a provider of megaposters at trade fairs and major construction sites, and the year before that CCOP bought Plakatron.
Significant increase in salesJCDecaux, which emphasizes in its press releases that it is the number one outdoor advertising company in Europe and Asia and number two worldwide, has so far only announced sales figures. According to these figures, it was able to increase sales in the 2006 financial year by a total of 11.5 percent to 1.946 billion euros compared to the previous year - not least thanks to acquisitions and exchange rates. However, even without these effects, i.e. in terms of organic sales alone, JCDecaux was able to increase its turnover by 7.7 percent. In France and the other European countries, JCDecaux achieved steady organic sales growth throughout the year. Sales growth was particularly strong in North America, Latin America and the Asia-Pacific region. JCDecaux is also in the process of conquering new countries: thanks to the contract for street furniture in the Uzbek capital Tashkent, the company set foot in Central Asia for the first time. And through a joint venture with the outdoor advertising company BigBoard Group, the poster company also entered the Ukraine and Russia. JCDecaux owns 40 percent of the new BigBoard BV.
There were rumors about CCO last year: After it was announced in November that the investment companies Bain Capital and Thomas H. Lee Partners were to take over the helm at CCO parent company Clear Channel Communications (CCC), reports appeared shortly afterwards that competitor JCDecaux was now interested in acquiring CCO. CCC and CCO reacted immediately and vehemently denied that they were in talks with JCDecaux or any other company. CCC has since refused to make any further comment.
Either way, CCO as a whole would probably be too big for JCDecaux and any other interested parties anyway, and there would also be competition law problems in some countries with a CCO presence. A split-up of CCO is therefore more likely (see below). For the time being, it therefore remains to be seen whether the CCC General Assembly will even approve the sale of its own company.
Markus Knöpfli