Despite a delay in the rollout of its London Digital Network (LDN) (JCDecaux Replaces Clear Channel in London), JCDecaux remains positive about its prospects in the UK capital.
JCDecaux’s digital billboard business was up in its Q1 finance results, helping to drive a 15% YoY increase in revenue. Europe, mainly thanks to digitisation in the UK, performed well (although the fragmented market is still a problem). The firm also raised its presence in several US cities: Chicago, for instance, now has 43 screens operated by JCDecaux, with 17 more coming. A decision will also shortly be reached on a proposal to upgrade static roadside billboard to digital units in California.
In the UK, the LDN (consisting of 1,000 84″ screens) has been delayed by the complexity surrounding the installations. As a result, JCDecaux began Q2 with only 20 screens installed instead of the planned 300. The expected loss of advertising revenue will be “significant,” it has warned.
JCDecaux now expects to have 200 screens at the end of Q2, rather than 500.