Outdoor giant oOh!media has experienced another strong year of growth on the back of digital, and commits to progressively digitising their assets.
Results skyrocketed on the back of the company’s digital strategy, however oOh! says classic print media is still a core part of its business. As it currently stands, 45.6 per cent of oOh!media’s total revenue came from digital, up by 50 per cent from 31.6 per cent last year.
Print accounts for $182.8m of oOh!s $336.1m revenue for the year to date.
Brendon Cook, CEO and managing director, oOh!media, says, “Like for like classic inventory was relatively flat which is an improvement on the year prior where it was down by mid-single digit figures.
“Classic inventory will continue to rebound as it did in 2016 as advertisers understand how to mix classic and digital campaigns and revenue continues to grow in the sector. As we see campaigns become shorter, more flexible and with more creative unmissable ideas, we are seeing strong print sales."
In its CY 2016 results, revenue is $336.1m, up 20.1 per cent from last year’s figures, with an underlying EBITDA of $73.5m, up 27.4 per cent from last year, an underlying NPATA of $35.6m, up 24.8 per cent from the prior year, and a full year fully franked dividend of 14.0cps, up 47.4 per cent. Gross profit is $144.9m, up 30.3 per cent from CY2015.
oOh!media currently owns more than 14,000 static panels, and more than 8,000 digital screens. In CY 2015, the company owned 5,000 digital screens.
The company says this year’s acquisition of Cactus Imaging displays that the company still recognises the value of static advertising, despite major investments in digital.
Brendon Cook, CEO, oOh!media says, “Classic panels are still key to our business. The acquisition of Cactus Imaging strengthens our core business and will allow oOh!media to recognise several supply chain efficiencies in the classic print outdoor market.
“While delivering on our digital strategy is an important element of growth, our portfolio of over 14,000 classic panels contributes to the scale and diversity of audiences. Linking Out Of Home physical assets with mobile, online and social, continuing to expand our reach for clients and build a world-leading audience-led solution for advertisers.”
Significantly, digital revenue is $153.3m, up 71 per cent from last year’s figures. This was boosted by the introduction new digital large format screens, 29 roadside, 39 in retail centres, 25 at the airports, and more than 200 smaller retail screens.
oOh!media has also made strategic acquisitions and integrations in 2016, swallowing up ECN, Junkee Media, Cactus Imaging, Inlink, and is currently in a proposed merger with APN Outdoor.
In regards to the timeline for the APN merger, oOh!media says a scheme meeting is expected to be held in April 2017, with the merger expected to be implemented in May 2017.
The company notes its ‘end-to-end digital strategy goes beyond the conversion of classic panels to digital or growing inventory. Our goal is to provide two-way interactions between brands and people through our diverse portfolio of digital assets. The strategy combines oOh!media’s physical screens with our leading-edge technologies with mobile, social and online content and publishing channels and other interactive digital capabilities.’
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