oOh!media Delivers Impressive Full Year-Results

oOh!media Delivers Impressive Full Year-Results
SHARE
THIS



Out of home provider oOh!media Limited today announced continued double-digit growth in revenue (up 13.1 per cent) and Underlying EBITDA (up 22.5 per cent), while delivering significantly improved operating margins for the year ended 31 December 2017 (CY17).

Digital revenue as a percentage of total revenue increased to a record 59.8 per cent for the full year, extending the strong first half gains in revenue from oOh!media’s digital network of 8,000 screens.

By leveraging the scale of its diverse product portfolio and investment in data and content, oOh!media grew earnings and profitability faster than revenue. The company increased its market share in the OOH advertising sector, which, according to the Standard Media Index, grew at 7.3 per cent in 2017 compared to the overall media sector growth of 0.7 per cent.

Financial highlights included:

· Revenue of $380.3m, up 13.1 per cent from the year ended 31 December 2016 (CY16), from strong organic growth and acquisitions made in CY16

· Gross profit of $175.5m, up 21.1 per cent on CY16

· Gross profit margin of 46.2 per cent, up from 43.1 per cent in CY16

· Underlying1 EBITDA of $90.1m, up 22.5 per cent on CY16 and within guidance reaffirmed at the half-year result

· Underlying EBITDA1 margin expansion to 23.7 per cent from 21.9 per cent in CY16

· Capex of $33.9m – continued disciplined and focused approach to capex, down 13 per cent on CY16

· Underlying NPATA1, 2,3 of $47.2m, an increase of 22.5 per cent on CY16

· NPAT of $33.1m, up 35.5 per cent from CY16

· Earnings per share of 20.2 cents per share, up 26.4 per cent from prior year

· Fully franked final dividend of 10.5 cents per share, bringing full-year dividend for CY17 to [15.0] cents per share fully franked, up 7.1 per cent on CY16

Operational highlights included:

· Leading Out Of Home industry position maintained with 8,000 digital panels across Australia/New Zealand, 12,000 classic panels and 8 online platforms

· Balanced and diverse lease maturity profile maintained with only 12.1 per cent of revenue attached to contracts up for renewal in CY18, and the cumulative percentage of revenues attached to leases expiring more than three years from the reporting date increased from 50 per cent to 65.5 per cent following several key concession extensions

· Acquisitions integrated with cost synergies achieved

· Ground-breaking campaigns conducted in CY17, integrating content, data and a combination of offline (Out Of Home and experiential) and online (Junkee Media and social media) platforms

oOh!media’s CEO, Brendon Cook, said: “oOh! has delivered a quality financial result which continues the strong performance since our listing in 2014. The Company has increased revenue by 46 per cent and more than doubled Underlying EBITDA to $90.1m since 2014.

“While the OOH sector has performed strongly, we’re growing our business faster than the OOH market by continuing to lead the market in delivering innovative solutions for clients to integrate data.

“Over the course of the year we have worked with clients to deliver ground-breaking campaigns, leveraging our investment in data and audience insights, to deliver outstanding results for advertisers.

“The diversity and scale of our product offering across our physical assets, combined with engaging content and the ability to provide growing connections through online, mobile and social media provides a compelling opportunity to advertisers to connect with their desired audiences.

“We are confident that our investments in our portfolio, data capability, systems and people provide us further opportunity to leverage the scale of our platform to deliver the next phase of revenue growth and sustainable value creation for shareholders,” Cook said.

Product highlights include:

· Road and Retail continued to deliver double-digit revenue growth, with Road up 10 per cent to $137.1m and Retail increasing by 15.7 per cent to $126.3m. Within Road, 21 premium screens were converted to digital during the year, bringing the total of metropolitan-owned large format digital screens to 64. The Retail business has benefited from extensive digital capital investments in the prior two years

· Fly revenue was impacted by reduced spend by three major advertisers, with revenue down 1.8 per cent on the prior year to $55. million. However, the business improved significantly late in the second half of the year as advertisers returned to the segment, with revenue in the fourth quarter up 15 per cent, creating a stronger platform into CY18

· Locate revenue increased by 17.4 per cent to $34 million, with a stronger performance in the second half of the year led by further development of the sales packaging and team development driving an improved market understanding of the Office product

· New Zealand revenue grew by 28 per cent on an underlying basis excluding the Westfield concession, which in-housed its advertising at the beginning of the year as had been expected. On a reported basis, revenue in this market declined modestly by 2.2 per cent

· Revenue from Junkee Media and Cactus Imaging more than doubled to $18.3m

Financial Position, Guidance and Dividend

The Company’s balance sheet remains strong, with the net debt/Underlying EBITDA ratio at 1.4 times compared to 1.6 times for the prior year and remaining well within the Company’s banking covenants.

The Company continues to generate strong cash flow, with free cash flow generated, excluding acquisitions, increasing by 45 per cen tto $16.6m.

Capital expenditure of $33.9m declined by 13 per cent on the prior year, reflecting the company’s ongoing disciplined approach to the digitisation of assets across the portfolio.

The Board declared a final, fully franked dividend of 10.5 cents per share, payable on 16 March 2018, bringing the full year dividend to 15.0 cents per share fully franked. This is in accordance with the 40-60 per cent of Underlying NPATA payout ratio adopted by the Board. The final dividend for FY16 of 10.0 cents per share included a special dividend component of three cents per share, related to the proposed merger with APN Outdoor which was terminated on 19 May 2017.

Outlook and Guidance for CY18

oOh!media is confident of continued growth in the Out Of Home sector for 2018.

The board of directors takes the opportunity to provide guidance for CY18 EBITDA of $94m-$99m. In providing this guidance, the Board continues its disciplined approach to capital expenditure and intends to spend between $30m-$40m in capex, primarily focused on the conversion of signs to digital and further development of business systems to continue oOh!media’s digital strategy.

Please login with linkedin to comment

Brendon Cook oOh!Media

Latest News

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
M&C Saatchi Group’s 1440 Shuts Up Shop
  • Marketing

M&C Saatchi Group’s 1440 Shuts Up Shop

Sadly, M&C Saatchi's 1440 is no more. And chances of it being reborn as 1550 not looking much chop either.

by B&T Magazine

B&T Magazine
Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ
  • Media

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ

Havas Sports & Entertainment ANZ, a division of the broader global full-service agency Havas, has confirmed an exclusive deal with Foxtel to showcase the World Boxing Association (WBA) Welterweight Championship across the trans-Tasman. Billed as the ‘Fight of Champions’, Manny Pacquiao and Lucas Matthysse will square off for the WBA Welterweight belt this Sunday. Havas […]

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?
  • Media
  • Opinion

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?

In this guest post, PHD’s Chloe Hooper (pictured below) analyses the campaign that claimed top honours in the Media category at Cannes this year. I sat in the auditorium as the Cannes Media Lion winners for 2018 were awarded. One thing became instantly clear to me: it is all about taking home Gold or the Grand Prix. […]

Opinion

by B&T Magazine

B&T Magazine
MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope
  • Advertising
  • Campaigns

MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope

An integrated campaign by Vizeum Melbourne for MINI Australia’s new ‘Connected’ vehicles will see digital out-of-home (DOOH) served via Posterscope’s Liveposter platform. Delivered centrally, the campaign will showcase the flexible qualities DOOH provides via multiple creatives targeted with specific data overlays such as location, traffic, time of day, and weather triggers such as rain. The […]

Women In Media Profile: Lisa Sheehan
  • Media

Women In Media Profile: Lisa Sheehan

The delightful Lisa Sheehan straps into B&T's "cage of truth" we actually prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day
  • Advertising
  • Campaigns
  • Marketing
  • Media

News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day

News Corp Australia, Storyful and Fox Sports have joined forces in support of 2018 AIME Hoodie Day with a creative advertising, PR, social media and editorial campaign across print, digital, and broadcast media. Fox League presenter Hannah Hollis (pictured above) fronts the AIME Hoodie Day campaign, conceptualised, designed and created by News Corp’s trade marketing […]

Storyation Finalist For Global Content Marketing Agency Of The Year
  • Marketing

Storyation Finalist For Global Content Marketing Agency Of The Year

Sydney content marketing agency Storyation has been named a finalist for global Content Marketing Agency of the Year in the Content Marketing Association Awards in the US.  The only Australian agency on the short-list, Storyation was founded by two former Fairfax Media executives Lauren Quaintance (right in photo) and Mimi Cullen (left) and its clients include Tourism […]

Jaden Social Claims Integrated Marketing Tender For NSW Schools Spectacular
  • Marketing

Jaden Social Claims Integrated Marketing Tender For NSW Schools Spectacular

Jaden Social has been awarded the tender to handle integrated marketing for the NSW Schools Spectacular. The agreement will see Jaden Social manage marketing, media, digital and social across the 2018 to 2020 productions of Schools Spectacular, held at Qudos Bank Arena in November. Jaden Social underwent a competitive pitch to secure the account, in […]

APD Australia Appoints New Head Of Digital Product & Strategy
  • Marketing
  • Technology

APD Australia Appoints New Head Of Digital Product & Strategy

Digital transformation business APD has announced the appointment of Chris Butterworth as its Australian head of digital product and strategy. Based in Melbourne, Butterworth (pictured above) will be responsible for building on APD’s owned media team, growing its range of services and developing cross-channel products. Butterworth joins APD from Reprise Digital, where he was most […]