In Russia, JCDecaux partners with its competitors to form a new heavyweight display. " This is the first step of consolidation, essential to regain lost market share "Said Jean-François Decaux, chairman of the executive board and co-CEO of JCDecaux, who after several years of failure and frustration, wants to see big again in Russia.
Russ Outdoor, the Russian number one of the display of which the French is
already shareholder since 2012
25%, has since today a new majority shareholder: Stinn, number two in the display with Olymp and Laysa. By taking nearly 49% of Russ Outdoor, bought from three minority shareholders, the group is now a clear leader in the display market.
Compete with the Internet and television
" We are a minority. But we were going to powerful local partners. Together, we will have more weight to change the marketsays Jean-François Decaux. The next step is Russ Outdoor's merger with Olymp and Laysa. Together we will invest for more digitalization. "
In the new structure, JCDecaux retains 25% and its financial partner, the second largest bank in the country VTB, its 26%. Jean-François Decaux retains his right of veto and the General Manager of Russ Outdoor remains, for an indefinite period, Jean-Emmanuel de Witt, the Frenchman he had
appointed in 2016
to reform the management of the company and set a new strategy.
With a combined daily reach of 24 million people, thanks to 27,000 billboards in 72 cities, Russ Outdoor, Olymp and Laysa ensure that together their posters have an audience comparable to that of the major Internet networks and TV channels. But Russ Outdoor's turnover of some 120 million euros has not grown in recent years, largely because of the minority shareholders who wanted to withdraw and blocked any investment.
Iron above 10% market share
The actors of the display have lost ground against the new advertising competitions, with a market share of less than 10%. Thanks to the merger of the three companies, the centralization of their managements, the synergies of their activities and especially a common plan of investments over five years (without public amount for the moment), the ambition is to go back over this threshold.
With a flagship project: the Moscow Metro, without advertising for more than a year after the failure of the operator chosen by the mayor of the capital. While Russia accounts for 1% of its worldwide turnover, it is a priority for JCDecaux.