JCDecaux falls on lukewarm results and guidance

Eurazeo SE

07/03/2024 09:15

** Shares in French outdoor advertising company JCDecaux
 JCDX.PA  fall 6.7% close to the bottom of SBF 120 index after
its FY23 results fell short of market expectations
    ** Analyst Sarah Thirion from Midcap Partners said a
negative free cash flow, the absence of dividend, and an
underwhelming guidance weighed on the results
    ** "Our free cash flow was nearly breakeven at -€1.0
million, primarily impacted by one-off past rental payments for
about €100 million released following the conclusion of contract
renegotiations" the company said in a statement
    ** JCDecaux also abstained from proposing any dividend for
2024, as it did a year ago "to maintain financial flexibility"
    ** The company also anticipates its adjusted organic revenue
growth expected to be around 9% Q1 2024, whereas "the market was
expecting just over 10%", noted Thirion
    ** The shares are on track for their worst day since March
9, 2023

 (Reporting by Nathan Vifflin)
 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))