Classic still king for APN

APN Outdoor (APN) increases its revenue with a focus on digital, as it sees a drop in profit from its 2016 results.

APN’s revenue for HY2017 is $162m, up 8 per cent from the prior corresponding period (pcp). Underlying EBITDA is $37m, up 7 per cent from the pcp, while its profit is down 19 per cent from the pcp to $15.8m, once non-recurring items are taken into consideration.

Printed media, or classic, still accounts for the majority of APN’s revenue, $102m, although it decreased one per cent from the pcp. Digital accounts for the remaining $60m of revenue, increasing 27 per cent from 2016.

Split between formats, APN’s revenue came primarily from billboards, which increased by 20 per cent, reaching $84m. Australian billboards accounted for most of the growth, as it grew by 14 per cent, while the remaining 6 per cent can be attributed to growth in New Zealand.

Transit accounted for $47m, increasing two per cent from the pcp; rail $11m, increasing 10 per cent from the pcp, and airports $19m, a one per cent increase from the pcp.

APN says that classic revenues are holding while digital revenues continue to grow, and that increased marketing support restored the print-based transit segment to modest growth. Three key contracts have been renewed by the company, Tullamarine Freeway, Adelaide Buses, and Sydney Buses, which was renewed on improved financial terms.

The company was also successful in a multi-year extension of PTA, which includes Perth rail and billboards.

In digital, 16 elite screens were added in 1H17, bringing the total to 103. APN expects 24 more to added, of which six were commissioned since June 30.

The company has also invested in staff, creating 17 new roles in the 18 months, bringing costs up by $1.3m.

APN CEO Richard Herring is due to leave the company in September, with CFO Wayne Castle to take over in the interim as a successor is chosen.

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