Out of home operator oOh!media has announced its financial results for the half year ended 30 June 2016 which included revenue and profit growth, margin expansion, and an increased interim dividend payment of 4.0 cents per share.
oOh! remains ahead of digital rollout targets set in 2015 and during the half introduced a further seven large format premium digital Road billboards and 11 digital Retail Evoke banners across Australia and New Zealand. The business has also successfully integrated the Inlink acquisition, which increased the number of digital assets by 2,800 and has performed above expectations.
Highlights of today’s announcement included:
- Revenue of $146.6m up 18.2% on prior corresponding period (HY15: $124.1m)
- Gross profit of $60.1m up 40.0% on prior corresponding period (HY15: $43.0m)
- Gross profit margin expansion to 41.0% (HY15: 34.6%)
- EBITDA of $26.8m up 32.7% on prior corresponding period (HY15: $20.2m)
- EBITDA margin expansion to 18.3% (HY15: 16.3%)
- NPATA of $11.4m up 34.8% on prior corresponding period (HY15: $8.5m)
- Adjusted earnings per share of 7.6 cents per share (HY15: 5.7cps)
- Interim fully franked dividend of 4.0 cents per share (HY15: 2.8 cps)
oOh!’s CEO, Brendon Cook, said: “The business posted strong results, with diversified revenue growth underpinned by solid margin expansion. We delivered a number of key initiatives against our strategy which sets the roadmap for continued sustainable growth.
“We are investing now to be the new media business of today and into the future. This is being achieved by building a diversified and unparalleled portfolio of assets to deliver a world-leading approach to audience based connections.
“The Out of Home market continues to grow through digital asset conversions, and we continue to be a leader in the industry in this regard. Our strategy is an end-to-end digital strategy, offering the most advanced metrics to create unmissable campaigns for our clients by integrating Out Of Home advertising with mobile, online and social media offerings.
“This has driven an increase in digital revenue as a proportion of total revenue, representing 44.5% at the end of this period. This is well ahead of our target set in 2015 to have digital revenue of between 45%-50% of total revenue by the end of 2018.”