oOh! revenue rises 11 per cent

oOh!media saw its revenue rise up to $192m for the half year ending June 30, up 11 per cent from the prior corresponding period (pcp).

EBITDA came to $36.3m, increasing 13 per cent from $31.9m the year before.

The company generated a gross profit of $87.6m, up 16 per cent from the pcp, with a profit margin of 46 per cent compared to 44 per cent the year before.

Although oOh! Has more classic (print) panels within its network, digital now accounts for 64 per cent of oOh! revenue, up from 59.8 per cent in the prior half year. Digital first surpassed print at oOh! in the first half of last year, then growing to 52.1per cent.

Digital revenue increased to $122m, up 35 per cent from the pcp.

The company now has 8,000 digital panels across Australia and New Zealand, 12,000 classic and eight online platforms.

In the company’s last FY results, that figure climbed to 60 per cent, showing consistent growth in digital from 35 per cent digital in 2015 and 45 per cent in 2016.

[Related: oOh! takes Adshel for $570m]

The company splits its results into six segments, Road, Retail, Fly, Locate, New Zealand, and Other.

Within Other sits both Junkee Media and Cactus Imaging, the printing arm of the company purchased in 2016. The Other segment grew its revenue by 16 per cent, from $7.9m from $9.2m, however it remains unclear how much of the increase came from Cactus Imaging.

In the Road segment of the business sales were up 16 per cent, which the company attributes to growth in both its digital and classic sites, which it says delivered a strong increase in revenue for the period.

Retail revenue is down by five per cent, which the company says is a result of reduced spend from major advertisers.

The Fly segment saw an 18 per cent increase in revenue from the last quarter of FY17, coming to $29.3m from $24.7m.

Locate increased revenue by 30.8 per cent, coming to $20.8m from $15.9m in the pcp.

Brendon Cook, CEO, oOh!media says, “oOh! has delivered another strong result with solid revenue growth demonstrating the value proposition of our product offering across the most diversified portfolio in the industry.

[Related: oOh! profits rise as digital takes over]

“That diversity provides exposure to the broadest range of out of home segments and underlying lease contracts enabling us to deliver sustainable revenue growth while also mitigating periodic fluctuations in advertiser spend in specific categories and products.

“We are also successfully driving gross margin improvement in both percentage and absolute dollar terms.

“At the same time, we are implementing our strategy to invest for future growth. As we have said consistently, this year marks a transformation in our business as we build our platform to the next level.

“We are leading the industry in creating a new media business that is driven by data, content, and innovation, connecting advertisers to more audience through our extensive network of signs more easily, effectively, and efficiently.

“The investments we are making in our people, our systems and our network ensure that oOh! is at the forefront of the Out Of Home sector in creating a unique platform that delivers the next phase of revenue growth and sustainable value creation for shareholders through delivering results to our clients.”

The ACCC is still yet to approve the $570m Adshel acquisition made earlier this year. oOh! expects the transaction to be complete by the end of this year, with the company saying the purchase holds opportunities for further digitisation.

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