QMS Media Limited today announced its financial results for FY16, delivering significant revenue growth driven by digital which now represents 62 per cent of Australian media revenue.

Commenting on the result, managing director and CEO Barclay Nettlefold said, “Our strong growth in FY16 reflects the successful delivery of our digital development strategy and our expansion into the New Zealand market.

“Digital contributed 62 per cent of QMS’ Australian Media revenue in FY16, which compares to an average 37 per cent of revenues from Digital across the broader Australian Out of Home industry.”

Highlights included:

• Revenue up 88 per cent to $111.8 million (FY15 pro forma: $59.6 million).
• Significant increase in underlying EBITDA to $26.8 million (FY15 pro forma: $4.7 million).
• Underlying EBITDA margin up to 24.0 per cent, driven by digital (FY15 pro forma: 7.9 per cent).
• Statutory NPAT of $13.3 million (FY15 pro forma net loss after tax: $4.3 million).
• Final fully franked dividend of 1.5 cents per share (cps) declared.
• Above-market growth in Australia and leading position in New Zealand.
• 24 landmark digital billboards switched on in FY16, 49 sites currently operational.

All acquisitions completed in FY16 have now been fully integrated, including the IPO acquisitions and the New Zealand businesses acquired in December 2015.

Following the integration, iSite now operates under the QMS NZ banner and is benefiting from the Group’s capabilities in digital development, sales and marketing. This resulted in an EBITDA contribution of $3.7 million in FY16, which was ahead of acquisition guidance.

“The fundamentals driving strong Out of Home industry growth remain robust across Australia and in New Zealand. QMS is growing well above the market in Australia, with Australian media revenue up 94 per cent in FY16 compared to Out of Home industry growth of 17 to 18 per cent.

“Advertisers are seeking more meaningful connections with their audiences as the opportunities created by data and technology continue to disrupt the media landscape,” Nettlefold added.