Here, There & Everywhere (HT&E) has continued its solid revenue growth from the first half of 2017, thanks in large part to the performance of Adshel and Conversant Media.
On a statutory basis, revenue rose 58 per cent to $472.3 million in the 12 months to 31 December 2017, up from $298.6 million in the previous year.
Of the overall revenue figure, $161 million was directly attributable to the acquisitions of Adshel and Conversant Media in October 2016.
HT&E’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 30 per cent to $118.4 million, and net profit after tax and before amortisation attributable to shareholders was up 28 per cent to $54.1 million.
After a very strong first half of 2017, Adshel ended the year with revenue growth of 7.5 per cent to $221.3 million across Australia and New Zealand. Its EBITDA grew 11.3 per cent to $51.5 million, with digital revenues contributing to overall margin improvement.
HT&E noted that Adshel’s loss of the Yarra Trams contract to JCDecaux in October affected its momentum in the fourth quarter in Australia. Locally the outdoor media company grew revenues by 4.2 per cent in 2017, compared to 24 per cent in New Zealand.
Digital now accounts for over 30 per cent of Adshel’s overall media revenue.
Conversant Media delivered revenue of $4.2 million and EBITDA of $0.3 million, after $320,000 in launch costs for its premium-yield video platform Club Roar.
Australian Radio Network’s full-year revenue was down 0.6 per cent to $218.7 million, despite growing 5.1 per cent in the second half of 2017 to offset a 6 per cent drop in the first half. ARN’s costs were up 0.7 per cent, with EBITDA down $2.3 million for the year.
One of HT&E’s other digital investments, content agency Emotive, saw earnings rise 24 per cent in 2017.
Ciaran Davis, CEO and managing director of HT&E, said that while 2017 had its challenges, the group ended the year with strong momentum in its radio and outdoor businesses.
“Regaining and retaining the number one position was a key priority for ARN in 2017, which subsequently delivered the best ratings year in its history, and we finished 2017 as the leading national radio network in Australia,” he said.
“Adshel continued to outperform the market in terms of revenue share, and we are actively pursuing new contracts, having already secured the Metro Trains Melbourne contract for seven years.
“In line with our strategy, we have expanded our portfolio of digital investments, including entering the strong growth area of esports.