APN Outdoor has reported a double-digit drop in profit for the first half of the 2017 calendar year, due in large part to merger transaction costs and asset impairment.
The company’s statutory net profit after tax was down 19 per cent to $15.8 million in the six months to 30 June 2017, following $3.4 million in transaction costs for its failed merger with oOh!media, as well as a $2.2 million impairment of assets.
APN Outdoor’s revenue was up 8 per cent to $162.3 million during the period, due primarly to a 27 per cent increase in digital revenue, while underlying expenses before interest, tax, depreciation and amortisation (EBITDA) grew by 7 per cent to $37.2 million.
Outgoing APN Outdoor CEO Richard Herring said underlying EBITDA grew slightly less than revenue due to the business’s increased investment in staff to underpin longer-term growth.
“Digital screen revenues continue to represent over one-third of group revenues, and will continue to grow in line with demand and the company’s focused growth strategy,” he said.
“Over the longer-term, we see digital sites continuing to deliver greater yields. Notwithstanding the increase in digital screens and associated revenue, classic billboard revenue was resilient and performed better than expected in the first half.”