JCDecaux signs the 10-year advertising concession contract for the Sao Paulo metro
Paris, 9 August 2017 - JCDecaux SA (Euronext Paris: DEC), the number one outdoor advertising company worldwide, announces it will sign tomorrow the 10-year contract for the Sao Paulo metro advertising concession. This follows the contract win announcement made on 28 June.
The exclusive contract covers the installation, operation, maintenance and management of advertising on the blue (Line 1), green (Line 2) and red (Line 3) metro lines in Sao Paulo, Brazil's economic capital. As well as this presence on the three main metro lines, JCDecaux will also exclusively operate the sales and marketing advertising of the lila (L5) line stations, until the next attribution of its concession, hence having full coverage of 59 of the network's 67 existing stations. The Sao Paulo metro, which opened in 1968, was fully renovated in 2015 and is now used by over 4 million passengers during the work week.
JCDecaux is now the single analogue and digital advertising operator for the stations, tunnels and carriages of the four main lines, after 15 years of the metro working with multiple concession holders. Drawing on its experience in operating and restructuring advertising assets in the metros of Lima in Peru, Santiago in Chile and 54 other metro and tramway concessions in 15 countries around the world, the Group will propose an entirely reworked and modern offering in three phases over a period of approximately one year. The first phase involves marketing the current advertising assets of the Sao Paulo metro with a new sales strategy, the second phase involves a transition from the current assets to those of the new offering, and the third phase will develop the new media plan, which will be adapted according to each advertiser's profile and will prioritise varied and high-impact latest-generation premium technology, most of which will be digital (Iconic LED, Video Wall, high-resolution LCD Ivision and Ivision Twin screens, among others).
Already present in street furniture in this economic capital of Latin America, with the concession for 1,000 advertising smart clocks since 2012 and as the exclusive concession holder for the Sao Paulo Guarulhos International Airport since 10 July 2017, JCDecaux is further diversifying and consolidating its foothold in this metropolis of nearly 20 million inhabitants. This new contract also strengthens the Group's transport activity in Latin America's biggest advertising market and completes its remarkable display of street furniture under the Sao Paulo, Rio de Janeiro, Brasilia, Salvador, Manaus, Fortaleza, São Luís and Belém contracts.
Paulo Menezes Figueiredo, Chairman of the Sao Paulo metro, said: "Our teams in the Sao Paulo metro are very confident in this partnership with JCDecaux, the number one outdoor advertising company worldwide. By working with the best known company in managing advertising for the world's biggest metros, we are sure that the Sao Paulo metro's media offering will become a benchmark in Brazil. This contract will help us pursue our goals in terms of the passenger experience and modernising visual communications in our stations."
Jean-Charles Decaux, Co-Chief Executive Officer of JCDecaux, said: "We are very pleased to be signing the contract for the Sao Paulo metro advertising concession, a great acknowledgement of the expertise and operational skills that our Brazilian teams display every day to nearly 20 million Sao Paulo residents in the management of the 1,000 smart advertising clocks of this emblematic Latin American metropolis. Flexibility, creativity and design will be used to make the Sao Paulo metro a cutting edge media platform, improving the passenger experience and guaranteeing advertisers, their brands and their advertising agencies, optimal visibility.
Key figures for JCDecaux - 2016 revenue: €3,393m; H1 2017 revenue: €1,641m - JCDecaux is listed on the Eurolist of Euronext Paris and is part of the Euronext 100 and Euronext Family Business indexes - JCDecaux is part of the FTSE4Good and Dow Jones Sustainability Europe indexes - No.1 worldwide in street furniture (559,070 advertising panels) - No. 1 worldwide in transport advertising with more than 220 airports and 260 contracts in metros, buses, trains and tramways (354,680 advertising panels) - No. 1 in Europe for billboards (169,860 advertising panels) - No. 1 in outdoor advertising in Europe (721,130 advertising panels) - No. 1 in outdoor advertising in Asia-Pacific (219,310 advertising panels) - No. 1 in outdoor advertising in Latin America (70,680 advertising panels) - No. 1 in outdoor advertising in Africa (29,820 advertising panels) - No. 1 in outdoor advertising in the Middle-East (16,230 advertising panels) - Leader in self-service bicycles and a pioneer in soft mobility - 1,117,890 advertising panels in more than 75 countries - Present in 4,280 cities with more than 10,000 inhabitants - Daily audience: more than 410 million people - 13,030 employees
Communications Department: Agathe Albertini 01 30 79 34 99 - agathe.albertini@jcdecaux.com Investor Relations: Arnaud Courtial 01 30 79 79 93 - arnaud.courtial@jcdecaux.com
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