QMS Media Reports Strong H1 FY17 Result
QMS Media Limited today announced its financial results for the six months to 31 December 2016 (H1 FY17).
The positive H1 FY17 results come after a strong six months driven by landmark digital developments, expansion into in-stadia sports advertising as well as significant growth in New Zealand following the successful integration of iSite.
Financial highlights:
- Strong revenue and earnings uplift driven by landmark digital developments and contribution from New Zealand
- Revenue up 78 per cent to $79.0 million (H1 FY16: $44.4 million).
- Underlying EBITDA up 67 per cent to $17.9 million (H1 FY16: $10.7 million).
- Digital media revenue accounted for 66 per cent of Australian Media Revenue and 43 per cent of Total Group Media
- Statutory NPAT up 32 per cent to $7.5 million (H1 FY16: $5.7 million).
- Operating cash conversion increased to 90 per cent (H1 FY16: 19 per cent).
- Interim dividend of 0.8 cents per share (cps), fully
- Upgraded FY17 EBITDA guidance to $37.0 million, including an approximate $1 million contribution from the QMS Sports acquisitions (before transaction costs).
Operational highlights:
- Strong delivery on premium landmark digital roll-out across Australia and New
- On-track to exceed our original target of 66+ landmark digital billboards in FY17, with a minimum of 68 now
- 61 sites operational, which includes 16 new sites switched on in
- Significant growth in New Zealand following successful integration of
- Almost doubled our landmark digital portfolio in New Zealand, with 9 new sites switched on in
- Auckland Transport concession progressing well, Commuter Network ready for launch in H2.
- Expansion into in-stadia sports advertising – QMS
- Investments in OAMM, LIVE Docklands and Sportsmate completed in
- Extends QMS’ dynamic digital capabilities across broader asset base and provides access to engaged, high-value
- Provides presence in major sporting stadia in key markets, including Sydney and New Zealand, accessing millions of attendees and broadcast viewers each
- Ability to foster deeper audience engagement via co-ordinated multi-platform campaigns, including digital and social
QMS Managing Director and CEO Barclay Nettlefold said, “Our strong result reflects the continued delivery of our organic digital development strategy, and the strong performance of our New Zealand business following the acquisition and integration of iSite in FY16.
“Digital is continuing to drive strong double-digit growth in Out of Home across Australia and New Zealand, and remains core to our business. Two-thirds of our Australian media revenue and 43 per cent per cent of Group media revenue came from our digital assets in the first half. Our landmark digital roll-out is progressing ahead of expectations, and we are on track to exceed our original target, with over 68 sites now expected to be switched on by the end of the financial year.
“The media landscape is continuing to evolve toward more co-ordinated and targeted campaigns, and we are well placed to unlock additional value from our portfolio by leveraging customised, dynamic digital content across multiple platforms. With QMS Sport, we now have a digital presence in major sporting stadia across Australia and New Zealand. This provides us with access to a large, highly engaged audience in a connected environment, which is ideal for delivering tailored content through in- venue digital, mobile, social and experiential channels in real-time.”
Result commentary
Strong revenue and earnings growth was predominantly driven by the contribution from new landmark digital developments and a full period contribution from the New Zealand acquisitions completed in December 2016.
The underlying EBITDA margin of 23 per cent (H1 FY16: 24 per cent) reflected an increased contribution from the lower-margin New Zealand business and continued investment in overheads to support future growth.
Net profit after tax was up 32 per cent to $7.5 million, with higher finance costs and income tax expense compared to the prior period.
Operating cash flow conversion increased to 90 per cent with a continued focus on working capital management.
The strong momentum in our digital development strategy continued in the half, with 16 high quality landmark digital sites switched on, bringing our aggregate portfolio at 31 December 2016 to 61, with permits approved for a further 19 sites.
During the period QMS Media invested $22.4 million in sports digital outdoor media and technology assets, including:
- An 80 per cent stake in Out and About Marketing and Media (OAMM), a leading provider of in-bowl digital stadium and other advertising at key sporting stadia across Australia and New
- A 50 per cent stake in LIVE Docklands, which holds the rights to several digital advertising assets within Melbourne’s Etihad
- A 20 per cent strategic stake in Sportsmate Australia, a leading developer of sporting apps across a number of popular sporting codes, including AFL, NRL, Cricket, Rugby, Soccer, NFL and
The investments were funded through a combination of debt and an institutional placement. QMS has maintained a conservative balance sheet, with net debt of $17.3 million (or 0.5x historical EBITDA) at 31 December 2016.
Dividend
The Board has declared an interim fully franked dividend of 0.8 cps. The interim dividend equates to a dividend payout ratio of 34 per cent of H1 FY17 NPAT, which the Board believes appropriately balances the distribution of profit to shareholders and the reinvestment of earnings for future growth. Our dividend policy remains unchanged at 30 per cent – 50 per cent of NPAT, weighted to second half.
The interim dividend will be paid on 21 April 2017. The record date for determining the entitlement is 10 March 2017.
FY17 outlook upgraded
QMS has upgraded its full year FY17 EBITDA guidance to $37 million, including a part-year contribution from the Sports acquisitions of approximately $1 million (before transaction costs).
The above guidance reflects:
- Ongoing strength of Out-of-Home industry fundamentals in Australia and New
- Delivery of QMS’ upgraded landmark digital billboard target of 68+ in FY17, and a full period contribution from billboards switched on in
- Full year contributions from:
- Acquisitions completed in FY16 – iSite, Omnigraphics NZ and
- Auckland Transport and Bali Airport
- Advertising market seasonality, with underlying revenue and earnings more weighted to
- Ongoing investment in corporate overheads, reflecting previously highlighted commitment to systems, resources and capability
Please login with linkedin to comment
Workshop SydneyLatest News
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.
Entries For Five Decades Of Advertising Graduates Awards Close On Monday
Entries for the Five Decades of Advertising awards close Monday. And no extensions! Any bribery is open til Wednesday.
Cadbury Extends Commitment To Women’s Sport With Sweet New Wallaroos Deal
Rot your teeth, get fat and support women's sport all at the same time with this sweet new sponsorship arrangement.
Campfire X & Nando’s Partner To Acknowledge Traditional Land Owners Across Australia
Chicken chain unveils important First Nations initiative. The actual chickens more concerned with the Adani coal mine.
Lisa Ronson, Naysla Edwards & Ben Hill Join MFA Awards Signature Judging Panel
MFA Awards adds some serious clout to its judging panel. Still no confirmation Paulini will be performing on the night.
Connect Hearing ‘Sounds Good’ Platform Via Bread Agency
Every office has that one hard of hearing person that's oblivious to the fact. Ramp up their insecurities with this.
Ipsos Iris Data: Australians Prioritise Entertainment & Sports Over Serious News In March
Data shows Aussies prioritising light entertainment over hard news. And who can blame them if you've seen the hard news!
Fur Media Partners With Mad Paws To Support Advertisers
It's never good if your office smells like faeces & brine chunks in aspic. Not if you're pet-friendly agency Fur Media.
MAXIBON Drops Epic Flavour Collaboration Via SICKDOGWOLFMAN
There are few pluses to be had with global warming, except the extension of ice-cream eating season.
Sling & Stone Scrubs Up With Lush Account
Got friends at Sling & Stone? Expect the dreaded loofah and bath bomb for birthdays/Christmas this year.
SBS’s The Cook Up With Adam Liaw Produces ‘Fewer CO2 Emissions Than Industry Average’
SBS could go full vegan for Adam Liaw's seventh season and reduce its TV audience and emissions by 99 per cent.
GumGum & Playground xyz To Merge Media Portfolio, Creating “Powerhouse” Ad Suite
GumGum & Playground xyz tap into consumer mindset. B&T prefers tapping a keg, but whatever works.
All The Winners & Grinners From The TikTok Young Lions Awards Night!
Last week saw every part of the human experience: Exalted, devastated, exhausted & stuffing sausage rolls in the corner.
TV Ratings (21/4/24): Farmer Wants A Wife Wins Sunday Prime Time
Farmer Wants A Wife does make the country life seductive. Apart from the manure stench & the bleating roosters at 5am.
Australia’s Automotive Industry Shifts Gears With CTV
How much was CTV responsible for Australia's record car sales in 2023? Or those horrible oversized American utes?
Australia’s C7EVEN Communications Launches Services In Japan With New Tokyo Office
Aussie comms agency unveils its Tokyo plans. Confirms it's still getting the hang of the toilets over there.
Daniel Goldstein Promoted To Head Of PR At Example
Try as he may to surreptitiously blend in with the wall in his photo, this PR fellow still relatively easy to spot.
Marie Claire & Volvo Partner For The Planet: Nominees For The Inaugural Marie Claire Sustainability Awards Announced
Fashion bible Marie Claire unveils its Sustainability Awards. Yet still refusing to recycle 2023's maxi skirts trend.
Sefiani Unveils A Wave Of Promotions & Appointments
Life's good in PR/comms as Sefiani unveils new hires. Well, bad news for media sites obsessed with redundancy stories.
Yahoo Launches Identity Solutions For CTV
Connected TV just got a whole lot more exciting with this innovation. Bar the incessant Friends re-runs.
Infosum Launches Data Clean Room Solution With Samsung Ads Australia
Infosum & Samsung Ads launch a data clean room solution that's a lot more than a Wettex & squirt of Ajax.
Fast 10: Bread Agency’s Amaury Treguer On Its “Unrivalled” Social Commerce Focus
Bread Agency's Amaury Treguer takes B&T's Fast 10, as he reveals why he won't be sandwiched up against the opposition.
X And Elon Musk To Sue Australia’s eSafety Commissioner Over Sydney Stabbing Takedown Order
If this all wasn't traumatic enough, Elon weighs in to prove he's the world's richest man & world's biggest dickhead.
CRA Siren Award To Be Presented At B&T Awards 2024!
Often attend award nights & think "I wish this night would never end"? Well, B&T's just got that tiny bit longer.