JCDecaux falls as weak top line developments overshadow cost discipline

Jcdecaux SE

31/07/2025 08:29

** Shares in JCDecaux JCDX.PA edge down 3.5%, after the advertising firm reported H1 organic revenue growth slightly weaker than expected, according to J.P.Morgan

** The broker flags that organic revenue growth come at +1.6% growth Y/Y (vs consensus of +2.1%) though profitability improved considerably with H1 operating margin coming at 307 million euros, a +9% beat to consensus expectations

   ** JPM says that a positive surprise with the margin is likely to be overshadowed by weak developments in trading

** It points to management guiding for negative low-single-digit organic revenue growth (vs consensus +0.6%)in Q3 due to an about 410 bp impact from sporting events last year and no improvements expected in China

   ** "Finally a strong execution on costs but likely overshadowed by weak top line developments" says JPM

 (Reporting by Marianna Ciabach-Malinowska)

 ((Marianna.ciabach@tr.com))