The company recorded net profit of €18.8m (£13.2m) in the six months ending June 30 2003, beating analyst expectations of around €11.8m. Revenues were down 2% on last year's figure to €758.2m. However, JCDecaux said that, taking into consideration currency differences and acquisitions, organic revenue was up by 1%.
Shares in the company, listed on the Paris Bourse, rose by 1.6% when the market opened this morning to €11.99, with JCDecaux reporting a rise in earnings margin to 25.9%.
Revenues at the transport division, which include airport advertising, fell by 6.5% to €131.1m. However, when currency differences and acquisitions are taken into account, organic revenues were up by 3.5%.
The company said that SARS affected airport and metro advertising business in Hong Kong, at the centre of the outbreak, for the second quarter of the year. However, there was strong recovery in the US, France, Spain, Portugal and Italy.
Street furniture revenues fell by 2.2% to €408.2m and billboard revenues were down by 1.5% to €214.8m. However, taking foreign exchange rates into account, organic billboard revenues were up by 1.3%, which the company said was due to growth in the key markets of the UK, France and Italy.
Jean-Francois Decaux, chairman and co-chief executive officer, said that the company was in a strong position to benefit from the anticipated improvement in advertising conditions next year.
"Our outlook for the full year remains unchanged, with trading conditions in Europe remaining challenging, particularly in Germany, but signs of an advertising recovery under way in the US," he said.
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