oOh! Media has delivered healthy revenue growth in its latest fiscal year results, crediting digital at the forefront of growth and print for 68 per cent of earnings.
The out-of-home media group logged a revenue boost of 7.3 per cent to $279m, up from the prior period’s $260m and surpassing the forecast by five per cent.
Net profit surged, increasing by 56.8 per cent to $28.5m compared to $18m in 2014.
The company’s operational and financial success was attributed to a focus on digital network and reach, and according to oOh! it installed more than 900 digital signs in the past year.
Financial growth from its digital assets was fronted by its oOh! Road division, up a staggering 241 per cent, followed by retail at 60 per cent, oOh!! Fly at 11 per cent growth and oOh! Place up 12 per cent.
Digital revenue for oOh! is up 48 per cent, and contributed to 32 per cent of total revenue in 2015- an increase of 9 per cent from 2014.
Print however still remains key the chief revenue producer for oOh! chief executive Brendon Cook says static signage represents 68 per cent of revenue, and cites an integration of both print and digital as the key to successful campaigns.
“Certain clients want only static or some only digital, but I think using a combination of both is a key component to successful out-of-home campaigns,” says Cook.
“There are still enormous opportunities and the vast majority of work we do still involves print, so we have two bows in our arrow- print and digital.”
[Related: OOH companies using print]
Cook is positive print will stay a competitive and flourishing medium for out-of-home, and asserts while the printing industry needs to keep up with the fast-paced immediacy of digital, he says ‘print won’t die’.
Despite continuing to harness the power of print media, oOh!’s 2016 financial goals involve digitisation of existing static signage and says its strategic plan for the full year is to persist with its ‘conversion of premium roadside billboards to digital’.
Cook expects capital expenditure to include 300-599 retail digital screen and the conversion of 10-15 large format roadside billboards to digital.
“oOh! Media’s strategy of increasing our digital capabilities is about much more than investing in digital screens. That’s one phase of our end-to-end digital growth strategy,” he says.
“It’s also about the integration of engaging digital screen content with online, social and mobile channels as well as providing advertisers with more sophisticated audience insights and analytics.”
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