COLOGNE (dpa-AFX) - Cologne-based outdoor advertising specialist Ströer plans to continue to grow despite the gloomy mood on the German advertising market. "We expect organic growth in the mid, single-digit percentage range for the first quarter," said co-chief executive Christian Schmalzl, according to a statement on Friday. Although the growth rate is significantly behind that of the same period last year, when Ströer had increased revenues by almost a quarter. Since then, however, the market has changed significantly as a result of persistently high inflation and increasing consumer restraint, as the final quarter of 2022 also shows.

The share price rose 0.75 percent to 53.65 euros shortly after the start of trading. U.S. bank JPMorgan wrote in an initial reaction that, all in all, Ströer had performed very reassuringly in a difficult environment.

Sales in the fourth quarter were almost unchanged compared with the same period last year at around 526 million euros, Ströer added. This meant that growth, which was already declining over the year, virtually came to a standstill. The months of October to December are usually considered the most important in the advertising industry, because companies position themselves during this time for the Christmas season and, accordingly, a stronger buying mood among people.

Adjusted for special effects, the operating result (Ebitda) for the final quarter was around 187.5 million euros, four percent less than in the same period last year. Net profit slumped by 30 percent to just under 59 million euros because Ströer had to pay more taxes, among other things.

Meanwhile, the management board stressed that the German advertising market is likely to slump by a high single-digit percentage in the first quarter. Ströer nevertheless intends to grow. The management board did not provide a forecast for the full year 2023. This would only follow when the figures for the first quarter are published.

Based on preliminary figures, Ströer increased its revenue by almost nine percent to EUR 1.77 billion in 2022. Above all, business with digital outdoor advertising - for example, advertising on screens in the waiting area at the subway or in train station concourses - drove the development. Earnings before interest, taxes, depreciation and amortization (Ebitda), adjusted for special effects, rose by five percent to 541.4 million euros. Both key figures were roughly in line with analysts' average expectations.

The bottom line improved by 17 percent to almost 152 million euros. The Management Board intends to publish the final figures for 2022 on March 30./ngu/mis/stk