The numbers from two massive outdoor media companies, oOh!Media and APN Outdoor, show monstrous growth in the sector.
Both companies exhibited strong revenue growth and EBITDA (earnings before interest, taxes, depreciation, and amortisation) results.
The results released yesterday show the outdoor company increased its revenue by 25 per cent on last year, up to $136.3 million. Its EBITDA was up 110 per cent from the same time in 2014 to $26.6 million.
Richard Herring, APN Outdoor’s CEO said: “The H1 performance is very encouraging and is the result of our team’s successful execution of our growth strategy. We remain confident that our current initiatives, including large format digital screen development, will enable continued leadership in the Outdoor industry in Australia and New Zealand.
“The outdoor industry’s attractiveness to advertisers continues to strengthen with increasing audience potentials due to population growth and a rise in daily journeys. Against a backdrop of some other media’s audience declines, outdoor’s relevance to advertisers is increasingly being recognised. It has been further boosted by recent investments in technologies and products that broaden the scope of the medium’s use.”
The first half-yearly results form oOh!Media show a growth of 51 per cent in EBITDA of $20.2 million, with its revenue up six per cent from the same time last year to $124.1 million.
It goes without saying oOh!Media CEO Brendan Cook was pretty chuffed with the figures, announcing the company is upgrading its EBITDA forecast figures for the full-year from $48.6 million to $53-55 million.
“We have delivered a strong first half performance and made great progress executing against our strategy, particularly in rolling out our digital initiatives,” said Cook. “This positions us well for long term growth while at the same time maintaining our audience reaching leadership position.”
Much of the success is pinned on the digital rollout from oOh!Media and its new digital strategy.
Cook added: “With our existing network of assets, we are driving innovation by making investments to digitise major sites such as Bourke Street in Melbourne that are at the highest end of revenue generation per site in the industry.”