oOh!media Limited has today reported that it had grown strongly and exceeded forecasts across all key financial metrics in its first full year results since re-listing on the ASX.
In announcing oOh!’s full year results today chief executive officer of the out-of-home media company Brendon Cook said it had delivered strong revenue growth – delivering a better than anticipated EBITDA and adjusted NPAT.
“While most traditional media businesses are experiencing a decline in relevance, audiences and revenues as a result of the media landscape fragmenting, oOh! is one of the few that is bucking the trend,” Mr Cook said.
“Our core asset mix of static and digital roadside billboards, and portfolio of advertising panels in shopping centres, airports and other key out-of-home environments continue to perform strongly as they reach a growing audience across both metropolitan and regional areas.
“On top of this our new digital out-of-home media strategy and offerings have helped us further increase our share of the $13.4 billion spent on advertising in Australia in 2014, by delivering advertisers more creative engagement opportunities with consumers nationally and therefore broaden the out-of-home campaign capability.”
Last year, oOh! fast tracked its digital roll out to delivering Australia’s largest audience reaching digital network that comprises of more than 1,900 digital signs underpinned by the most advanced proprietary content management system in the country, ARGYLE
“Through our investment in digitisation and innovation, we have changed the face of one of the oldest advertising mediums through delivering dynamic and interactive media platforms for advertisers to engage with customers,” Mr Cook said.
“It has also enabled us to increase the yield from our assets by providing time-sensitive advertising opportunities such as “sale” or “limited time” offers that the out-of-home industry previously could not provide.
“This has seen us not only continue to be the market leader in Australia’s fastest growing traditional media segment, but also lead the market in digital revenues. Digital now represents almost a quarter of our revenue, which is well above the industry average, and we forecast that within three years digital will contribute half of our revenue.”
Key points of the results included:
- Pro forma revenue of $260.8 million for the full year to 31 December 2014, up 7.1% on the previous corresponding period (pcp) and up 1.0% on the forecast in the IPO Prospectus.
- Pro forma EBITDA of $42.1 million, up 27.9% on the pcp and 4.7% ahead of the Prospectus forecast.
- Pro forma Adjusted NPAT of $18.2 million up 222.3%on the pcp and 4.0% ahead of the Prospectus forecast.
- Digital revenues continue to outperform, with the percentage of total pro forma revenue reaching 23.2%, against Prospectus forecast of 22.0% and the prior year of 16.9%.
- Strong balance sheet position – ending 2014 with 1.5x Net Debt to 2014 Pro Forma EBITDA.
- The Board reconfirms pro forma CY2015 forecast of $266.4 million revenue, $48.6 million EBITDA and $22.2 millionAdjusted NPAT.