JC Decaux beats profit forecasts, shares gain

French outdoor advertising company JC Decaux raised its revenue guidance for the year today as first-half profits topped expectations…

French outdoor advertising company JC Decaux raised its revenue guidance for the year today as first-half profits topped expectations, lifting its shares.

The world's second-largest outdoor advertising firm reported a 48 per cent jump in net profit to €27.9 million, boosted by new contracts and a brighter advertising market.

"JC Decaux is increasingly benefiting from an improving European advertising market, while the company's operations in the United States and Asia-Pacific are being supported by continued growth in these advertising markets," it said in a statement.

Higher revenue and cost control efforts helped lift operating profit 13.6 per cent to €125 million, pushing the operating margin to 15.8 per cent of sales from 14.6 per cent a year ago.

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"These excellent results should lead (analysts) to raise their estimates," ETC Pollak Prebon, a Paris brokerage, said in a note.

By early this morning, Decaux shares gained 2.8 per cent to €18.15, outperforming the European media sector's 0.3 per cent gain.