PARIS (Reuters) - The world's biggest outdoor advertising group JCDecaux (PA:JCDX) posted 3.9 percent underlying sales growth in the third quarter, in line with analysts' expectations, helped by strength in its business that puts ads in train stations and airports.
The family-controlled group, which competes with smaller rivals U.S.-based CBS Outdoor (N:CBSO) and Germany's Stroeer Media (DE:SAXG), predicted that sales growth excluding acquisitions would be in the "low single digits" in the fourth quarter, leading full-year underlying growth to be "slightly above" 3 percent.
The outdoor advertising market globally is worth about $34 billion (21.45 billion pounds) a year, or about 6.9 percent of what big companies spend on marketing, according to Liberum Capital. It has been a promising niche, usually growing about 5 percent a year, in line with television but slower than online advertising.
Street furniture, JCDecaux's largest business, which signs contracts with local authorities to place ads in bus stops and newspaper kiosks, grew 7.8 percent on a reported basis to 288.8 million euros ($358.34 million).
The transport unit, which puts ads in train stations and airports, rose 6.9 percent on a reported basis to 271.7 million euro, while billboards fell 0.7 percent to 108.8 million euro.
JCDecaux's shares have fallen nearly 13 percent this year largely over concerns about Europe's continuing weak economy, underperforming the Stoxx Europe 600 Media Index <.SXMP>, which has risen by 0.5 percent. The company earns about two-thirds of its revenues in Europe and the rest in faster-growing markets such as North America, China, and Latin America.
JCDecaux has a market capitalisation of 5.83 billion euros($7.23 billion).
(Reporting by Leila Abboud and Gwenaelle Barzic; editing by Mark John and Elaine Hardcastle)