oOh!media has delivered strong revenue growth for its latest financial results, with CEO Brendon Cook spruiking ‘diversification’ as the key to the company’s success.
oOh! experienced double-digit revenue growth of 18.2 per cent to $146.6m. During its last half year results it managed a seven per cent revenue boost.
Gross profit surged 40 per cent to $60.1m compared to $43m in 2015 and EDITDA of $26.8m was up 32.7 per cent from $20.2m for half year 2015.
The out of home giant’s stellar performance is attributed to the burgeoning growth of digital. Digital revenue now generates 44.5 per cent of total revenue, up from 29 per cent in half year 2015. However static revenue still dominates, contributing the other 55.5 per cent.
Commenting on the performance, oOh! CEO Cook touted ‘diversification’ as the way forward for the company.
“We are investing now to be the new media business of today and into the future. This is being achieved by building a diversified and unparalleled portfolio of assets to deliver a world-leading approach to audience based connections,” he says.
“Our strategy is an end-to-end digital strategy, offering the most advanced metrics to create unmissable campaigns for our clients by integrating out of home advertising with mobile, online and social media offerings,” he continues.
“This has driven an increase in digital revenue as a proportion of total revenue, representing 44.5 per cent at the end of this period. This is well ahead of our target set in 2015 to have digital revenue of between 45 per cent and 50 per cent of total revenue by the end of 2018.”
The company is moving ahead with its national roll out of digital large format signs across the country, revealing this month that it expects to complete 50 print-to-digital conversions by the end of 2016.
In a breakdown of category figures, Locate by oOh! dominated with revenue growth of 178.7 per cent from half year 2015 to $13.4m, which was attributed to organic growth.
Road also showed a strong performance, delivering revenue of $56.8m up 12.9 per cent from half year 2015. Retail and Fly followed behind in terms of growth generating $45.9m and $26.5m respectively.
oOh! has declared a fully franked interim dividend of four cents per share to be paid on September 21.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter