APN Outdoor has posted double-digit revenue growth for the 2016 calendar year just weeks out from its planned merger with oOh! Media.
The company announced to shareholders this morning that revenue increased by 10 per cent last year to $330.9 million – above its guidance of 8.5 per cent to 9 per cent growth.
APN’s digital revenue accounted for 34 per cent of its overall revenue – up from 23 per cent in 2015.
The company’s underlying net profit rose 20 per cent to $51.8 million, while its earnings before interest, taxes, depreciation and amortisation grew 18 per cent to $86.7 million.
APN chief executive Richard Herring said the business’ strong business growth over the last 12 months was due to the continued roll-out of digital screens in Australia and New Zealand.
“The conversion of APN Outdoor’s Classic sites to large format Elite digital screens is attracting greater revenues. However, this growth in revenue will be partially offset by the resultant reduction in Classic format revenue and associated production and installation services,” he said.
“We are accelerating the company’s capital investment in new digital screens. As part of this, we are rolling out new smaller Elite digital screens in both metropolitan and regional locations to further grow APN Outdoor’s digital asset portfolio.”
APN’s decent results come after its proposed merger partner, oOh! Media, announced earlier this week that its overall revenue and profit grew by more than 20 per cent in 2016.