Sales for the fourth quarter of the fiscal year just ended reached an unprecedented level. Organic growth exceeded 10%, and growth in the digital segment exceeded 20%. Sales in the analog advertising segment were also up, albeit at a slower pace.

This impressive expansion must be seen against the backdrop of a laborious recovery from the Covid nuclear winter. This dealt a severe blow to JCDecaux's business, with audiences dropping by over 90% in some markets, and advertisers deserting us altogether.

On the other hand, the development of the VIOOH programmatic advertising platform - the most profitable of the Group's activities, and the strategic pivot of its future expansion - commands unqualified satisfaction: the segment's growth will reach 63% by 2023, and now represents 8% of consolidated sales.

The subject of programmatic outdoor advertising has always been a source of concern for advertisers, as the measurement of effectiveness is highly imperfect. However, the latest technological innovations have improved visibility, so much so that most specialists agree on annual growth prospects of 5% to 7% in this field.

JCDecaux's announcements yesterday concerned sales only. Details of the accounts and performance of each segment will be published on March 7. Needless to say, these will be eagerly awaited, particularly to assess the potential of VIOOH.

The French family-owned group is not an easy subject for financial journalists. Its accounts are difficult to decipher and, while we can only salute its corporate culture and the quality of its management, we can't fail to mention the sometimes thankless fundamentals of the business.

JCDecaux, after all, has only grown at an annualized rate of 4.2% over the last two decades. Despite significant financial leverage, both its profitability and its ability to return capital to shareholders have remained modest over the period.

In January 2024, its share price was at exactly the same level as twenty years earlier. At that time, JCDecaux's sales were half as high, but its operating profit was comparable. It is therefore to be hoped that the Group will return to the strong growth in profits that characterized the three years preceding the pandemic and its entry into programmatic advertising.

Investors, however, remain skeptical. Before Covid, JCDecaux was valued on the stock market at between thirty and thirty-five times earnings, whereas current levels are more like twenty times earnings.

The resumption of dividend payouts and confirmation of profitable expansion in programmatic advertising services will undoubtedly be the two "catalysts" for an expansion in the valuation multiple.

MarketScreener will be back on the case on March 7 to comment on the group's detailed operating dynamics.