oOh revenue and profits both up

Outdoor company oOh Media has reported a revenue growth of six per cent for HY15, and has doubled its EBITDA, with digital revenue growing by 48.9 per cent. The company increased its revenue by 6.1 per cent from last year’s pro forma results of $116.9m forward to $124.1m for half year 2015.

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Brendon Cook, chief executive of oOh Media

The company’s EBITDA is up by 51 per cent from last year’s $13.3m to $20.2m, with net profit after tax growing a whopping 123 per cent to $8.5m from last year’s pro forma results of $3.8m. Digital revenue grew by nearly 50 per cent to $36m, and the company says all operating divisions continue to experience growth in digital media revenue penetration. Brendon Cook, chief executive of oOh Media, says the company has delivered a strong first half performance, and made great progress executing against its strategy, particularly in rolling out the digital initiatives. Cook says, “This positions us well for long term growth while at the same time maintaining our audience reaching leadership position. “Importantly, by concentrating not only on top-line revenue growth but also on portfolio contract management and greater leveraging of our assets, we have delivered stronger EBITDA and NPATA growth of 51 per cent and 124 per cent respectively.” He says the company is driving innovation by making investments to digitise major sites, such as Bourke Street in Melbourne, that are at the highest end of revenue generation per site in the industry.

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“Following from the success of our online products, we are at the forefront of driving deeper consumer engagement through our recent launch of ShortPress, which targets small and medium businesses with our own content published online and via our Cafe and Fly digital assets,” he adds. Cook says the company has developed a self sustaining growth strategy, which is generating new revenue opportunities for half year results with data and insights that demonstrate superior ROI to other mediums. It says oOh is building complementary extensions on online and mobile online and delivering Greenfield locations to further increase its footprint in the market. Cook says, “The gross profit for HY15 grew at 23 per cent over the same period last year reflecting growth in digital revenue, favourable revenue mix between the key operating divisions, the leveraging of fixed costs and the result of managed changes in the national concession and property mix to drive both top line and business profitability. “Advances in digital signage capability have allowed the business to optimise its portfolio without impacting oOh media’s national network cover. “The combined impact of gross profit growth and the leveraging of operating expenditures resulted in EBITDA growth of 51.4 per cent, and EBITDA margin improvement to 16.3 per cent from 11.4 per cent during the prior comparable period.” oOh Media revenue by division for half year 2015 for road increased by 4.7 per cent from last year’s statutory results of $48.1m up to $50.4m. Retail grew by 7.1 per cent from last year’s statutory results of $37.9m to $40.6m, and Fly grew by more than 18 per cent from statutory results of $22.2m for last year to $26.2m for FY15. Total revenue for the Australian arm of the business increased by 8.6 per cent from last year’s statutory results of $112.4m to $122m. However, oOh New Zealand slumped by 59.1 per cent from $5m last year’s pro forma results to $2m for HY15.

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