APN Outdoor delivers record result ahead of Ooh Media merger
Just weeks out from the expected confirmation of its merger with Ooh Media, APN Outdoor has posted a record result with revenue rising 10% to $330.9 million.
The company said the surge was on the back of the ongoing rollout of digital screens in its network.
Earlier this week Ooh Media reported a 20% rise in profit with CEO Brendon Cook predicting the company’s split between digital and traditional outdoor could rise to as high as 60%.
APN reported the proportion of its revenue coming from digital had grown from 23% in 2015 to 34% in the 2016 financial year.
Richard Herring delivered a record result in his final full-year result before stepping down.
APN Outdoor CEO Richard Herring said the result was ahead of the guidance the company had given, which placed the company in a strong position ahead of the merger with Ooh.
“The company has today announced another record result that was above the most recent guidance provided to the market,” Herring said.
“Statutory net profit was up 18% to $48.4 million, and importantly operating cash flow was up 19% to $66.3 million.
“The strong growth in the business over the past 12 months was due to the continued roll-out of digital screens within APN Outdoor’s Australian and New Zealand footprints. Digital screen revenues now represent over one-third of group revenues, and will continue to grow in line with the company’s focused growth strategy.”
Earnings before interest, tax depreciation and amortisation (EBITDA) lifted 18% to $86.7m and net profit after tax rose to $48m.
APN said the growth had been on the back of the installation of 35 new large format digital screens, with 31 commissioned in the second half of the year.
Herring said the outlook for the sector remained strong.
“The out-of-home sector in Australia and New Zealand remains robust,” he said.
“We believe it will continue to grow, underpinned by the sector’s digital investment and ongoing audience growth as share is taken from other traditional media. The ongoing shift to digital will drive revenue growth. The conversion of APN Outdoor’s Classic sites to large format Elite digital screens is attracting greater revenues. However, this growth in revenue will be partially offset by the resultant reduction in Classic format revenue and associated production and installation services.”
The company also confirmed that the merger with Ooh Media remained on track and expected it to be finalised in April.
