oOh!media Continues To Deliver Strong Revenue And Earnings Growth
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.
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.