oOh!media Continues To Deliver Strong Revenue And Earnings Growth

oOh!media Continues To Deliver Strong Revenue And Earnings Growth
SHARE
THIS



Outdoor company Ooh!Media, which is set to merge with APN Outdoor this year, announced its financial results for the year ended 31 December 2016 (CY16) which included more than 20 per cent year on year revenue and profit growth, earnings margin expansion and an increased dividend payment.

oOh!media’s CEO, Brendon Cook, said: “We are extremely pleased with business performance for 2016. We delivered an increase across key financial metrics including revenue growth across each product. The strong results reflect the ability of the oOh!media team to execute our strategy in developing a network which offers advertisers the ability to deeply engage with audiences.

“Our physical assets, combined with engaging content and the ability to provide growing connections through online, mobile and social media, is why advertisers are increasingly finding our offering compelling compared to other advertising mediums. As we further our data and analytics capabilities, the solutions we develop will drive further value for our clients through research and reporting of measurable outcomes.

“We maintain a disciplined approach to digitisation of our assets, with an inventory of high quality assets and a planned development pipeline.”

Financial highlights included:

  • Revenue of $336.1m, up 20.1 per cent from CY15 including growth across all products
  • Gross profit of $144.9m, an increase of 30.3 per cent from CY15, driven by strong performances in Road and Locate by oOh!
  • Gross profit margin of 43.1 per cent, up from 39.7 per cent in CY15
  • Underlying[1] EBITDA of $73.5m, up 27.4 per cent on CY15 (EBITDA of $70.3m, up 24.2 per cent on CY15)
  • Underlying1 EBITDA margin of 21.9 per cent, up from 20.6 per cent in CY15
  • Underlying1 NPATA[2] of $35.6m, an increase of 24.8 per cent from CY15 (NPATA of $32.9m, an increase of 18.8 per cent from CY15)
  • NPAT of $21.5m, an increase of 16.8 per cent from CY15
  • Delivered at top-end of earnings guidance provided in December 2016
  • Fully franked final dividend of 10.0 cents per share, resulting in a fully franked full year dividend for CY16 of 14.0 cents per share (CY15: 9.5 cps fully franked full year)

Operational highlights included:

  • Digital revenue as a percentage of total revenue of 45.6 per cent (CY15: 31.9 per cent), representing early achievement of a stated goal of greater than 45.0 per cent by end of 2018, as outlined in the 2015 Annual Report.
  • More than doubled our large format digital screens in premium locations to 190 (CY15: 90), including 54 large format Road billboards, exceeding the prospectus target of 50 by 2018
  • 8,000+ digital screens and 14,000+ classic panels across Australia and New Zealand with eight online content and publishing platforms
  • Strong maturity profile with only 16.2 per cent of contracts representing CY16 revenue due for renewal in CY17 and no more than 21.0 per cent due for renewal in any one year to the end of 2020
  • Acquisition and integration of Executive Channel Network (ECN) to expand CBD audience; Junkee Media to expand publishing and content capabilities; and Cactus Imaging to strengthen core printing, production and supply chain efficiencies for classic billboards
  • Announcement of proposed merger with APN Outdoor Group to create a leading media group by market capitalisation

All products achieved positive revenue growth during the year:

  • Road revenue of $124.6m, up 12.3 per cent on CY16, driven by momentum of new assets installed in late 2015 and 2016 including the introduction of 29 large format screens in premium locations during CY16
  • Retail revenue of $109.2m, up 10.2 per cent on CY16, attributable to the additional 39 large format digital EVOKE screens and an additional 200+ ShopaLive screens during CY16
  • Fly revenue of $56.0m, up 2.8 per cent on CY16, replacing revenue lost by T2 Sydney tender loss, attributable to part year developments in securing wins and asset rollouts at T4 Melbourne and Brisbane Virgin Australia Domestic Terminal, with the extension and rights expansion of the Cairns Airport mandate
  • Locate by oOh! revenue of $28.9m, up 196.4 per cent on CY16 driven by the successful integration of the CY15 Inlink acquisition, strong organic growth and the acquisition of ECN in late 2016
  • New Zealand revenue of $9.8m, up 75.2 per cent on CY16, driven by a number of significant long term contract renewals and wins, and a dedicated program of digital conversion to lift the quality of digital assets to international retail standards

“Our performance highlights the benefits of our diversified portfolio of assets, and we firmly believe this positions the company for continuing growth. Importantly, the products are increasingly benefitting from greater coordination of campaigns and the network effect across multiple media environments and channels,” Cook said.

Financial Position & guidance

Net debt / Underlying EBITDA of 1.6x at 31 December 2016 remains similar to the prior year of 1.5x at 31 December 2015. Importantly, the net debt / Underlying EBITDA position strengthened in the second half of CY16 despite three acquisitions – fully or partially funded by debt – and the increase in capital expenditure to accelerate opportunities for digital conversion as outlined in August 2016.

The Board is pleased to declare a final and fully franked dividend of 10.0 cents per share, an increase of 49.3 per cent on the final dividend for CY15. This is equal to the capped amount as announced to the market during December 2016. The final dividend will be paid on 28 March 2017. 

Due to the status of the proposed Scheme of Arrangement with APN Outdoor, oOh!media is not in a position to provide specific CY17 earnings guidance.

We are confident of continued growth in the Out Of Home sector over CY17; further execution and investment in oOh!media’s end to end digital strategy; and realising the full run-rate and synergies of acquisitions completed during CY16.

Please login with linkedin to comment

MYOB Transperth

Latest News

Rakuten Marketing Launches Consent Management Platform In Line With GDPR
  • Marketing

Rakuten Marketing Launches Consent Management Platform In Line With GDPR

Performance marketing company Rakuten Marketing has unveiled a new consent management platform (CMP) for retailers, advertisers and publishers. Compliant with the IAB Europe/Tech Lab Transparency and Consent Framework and developed to-date within a DigiTrust (now IAB Tech Lab) working group, the CMP is a proactive measure to help retailers, advertisers and publishers gain consent under […]

Five Top Tips To Improve Your UX And SEO
  • Opinion

Five Top Tips To Improve Your UX And SEO

Is your UX & SEO performing like a brattish MAFS contestant? Well, let this be the penetrative lube to their love woes.

Opinion

by B&T Magazine

B&T Magazine
Marc Edward Agency Snares PR Account For Cruiseco Australia
  • Marketing

Marc Edward Agency Snares PR Account For Cruiseco Australia

Experiential marketing firm Marc Edward Agency (MEA) announced the addition of Cruiseco Australia as client for its communications division. Following on from its execution of the Cruiseco 17th Annual Conference in Brisbane earlier this year, MEA has been appointed as the cruise specialist’s PR agency of record. Cruiseco CEO Amanda McClelland said: “Having demonstrated their […]

Why All Email Should Be Mobile First
  • Opinion

Why All Email Should Be Mobile First

Here's an authoritative article on email and mobile, and be safe in the knowledge it wasn't penned by any B&T staff.

Opinion

by B&T Magazine

B&T Magazine
39th AWARD Awards Winners Announced
  • Media

39th AWARD Awards Winners Announced

B&T was a lucky guest at the AWARD Awards last Friday, although misread the bit about fancy dress & went as a chicken.

Women In Media Profile: Zeina Khodr
  • Media

Women In Media Profile: Zeina Khodr

When B&T was offered to interview a lady named “Zeina”, we initially thought it was the warrior princess herself.

by B&T Magazine

B&T Magazine
Q&A With Cannes Chairman Terry Savage
  • Advertising
  • Media

Q&A With Cannes Chairman Terry Savage

If you mistakenly thought this was an interview with Kojak's Telly Savalas, as it turns out, it's even better than that.

Optus To Phase Out Virgin Mobile Brand
  • Marketing

Optus To Phase Out Virgin Mobile Brand

Didn't much fancy that Telstra story above? Well, perhaps B&T could tempt you with this tasty Optus tickler instead.

by B&T Magazine

B&T Magazine
AKQA R&D Teams Up With Google For Semi Permanent 2018
  • Media

AKQA R&D Teams Up With Google For Semi Permanent 2018

AKQA R&D in collaboration with Google has developed a process called Somesthetic Transfer. It uses machine learning to take both the style and texture of an artwork and apply it to another image to be 3D printed with a UV printer. The works will be displayed at Semi Permanent 2018 in Sydney from Thursday 24 […]

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid
  • Marketing
  • Media

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid

Design students from Torrens University’s Billy Blue College of Design have partnered with WPP AUNZ’s Health & Wellness division to decode clinical data on ‘Medicinal Marijuana in the Treatment of Epilepsy’. Their creative solutions will be presented at a Vivid Ideas Exchange titled ‘Design can save your life: how can creativity improve comprehension of health data?’ […]

Diversity Case Study Series: The Royals
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: The Royals

If you read one diversity case study on B&T today, make it this one. Not that there's any others to choose from, really.

by B&T Magazine

B&T Magazine
Cricket Australia Finds New Major Sponsor
  • Marketing

Cricket Australia Finds New Major Sponsor

B&T was going to insert a homage to Sherbert's classic "Howzat" here before realising it was naff and showed our age.

by B&T Magazine

B&T Magazine
PHD Wins HSBC Global Media Account
  • Media

PHD Wins HSBC Global Media Account

ICYMI, PHD has FTW the HSBC business IRL. It's not so much a LOL or NSFW, but a TL;DR. Ahh, forget the whole thing.

InMoment Accelerates APAC Expansion With Key Acquisition
  • Media

InMoment Accelerates APAC Expansion With Key Acquisition

Customer experience (CX) intelligence platform, InMoment, has expanded into Australia and New Zealand with the acquisition of customer experience agency, brandXP and appointment of Claire Fastier as its APAC business head.

Marketers Need To Focus On Voice Search Right Now
  • Opinion

Marketers Need To Focus On Voice Search Right Now

In this opinion piece, Performics Australia performance content account director Steve Robinson (pictured below) dives into the hazy relationship between marketers and voice-activated technology. From settling family disputes, (“Hey Google, are fossil fuels really made from dinosaur bones?”) to running a household, (“OK Google, add toothpaste to my shopping list”), voice-activated systems are becoming more […]

Opinion

by B&T Magazine

B&T Magazine
SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance
  • Advertising
  • Media

SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance

Video advertising and monetisation platform SpotX has announced the launch of an online resource library for the European Union’s General Data Protection Regulation (GDPR). The library can be found on the company’s website and is part of a wider educational initiative by SpotX – which is headquartered in the US and has an office in […]

Daylight Agency Opens Government Division, Hires Legal & Political Expert
  • Marketing

Daylight Agency Opens Government Division, Hires Legal & Political Expert

Integrated communications firm Daylight Agency has cemented its presence in the government and political arena with the appointment of industry veteran David Begg. A practising solicitor for over 28 years, Begg (pictured above) will head up the agency’s new government division. He has extensive experience working with large commercial clients on high-profile regulatory and legal […]

Frost Design Unveils New Look For John Holland
  • Marketing

Frost Design Unveils New Look For John Holland

Frost Design has shown off its comprehensive rebrand of iconic Australian infrastructure and property business John Holland, based around the brand idea of ‘Transforming Lives’. John Holland CEO Joe Barr said Frost was the only branding business who understood that the impact of the rebrand was just as important internally as it would be externally, […]

Women In Media Profile: Jill Johnston
  • Media

Women In Media Profile: Jill Johnston

We've got an absolute cracking Women in Media profile today. Not to say it's approved by the Chiropractors' Association.

by B&T Magazine

B&T Magazine
First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

One need only view our editor's hot pink leg warmers today to realise he's neither fad nor trend.

Opinion

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

And why is B&T running a photo of an engaged couple for this content engagement article? It was either that or a carrot.

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.