APN Outdoor opts out of Yarra Trams tender, re-appointed to Melbourne’s Metro Trains
APN Outdoor has announced it has chosen not to renew its contract with Yarra Trams Melbourne, however has been re-appointed the preferred partner for Melbourne’s Metro Trains.
The decision not to renew comes after Yarra Trams advised it wanted to combine the existing advertising contracts and award a combined contract to one operator.
Yarra Trams’ contract was previously split between APN Outdoor, who covered advertising on trams, and Adshel, which had the tram shelters contract.
According to an announcement on the Australian Securities Exchange (ASX), APN Outdoor’s portion of business was worth significantly less than Adshel’s.
It is not clear if Adshel has taken over APN’s portion of the contract, which is set to conclude on November 30.
The contract is estimated to contribute $7m to annual EBITDA (earnings before interest, tax, depreciation and amortisation).
At the same time, APN Outdoor has retained the rights to track and roadside assets for Metro Trains Melbourne, which it has had held for more than 10 years.
Wayne Castle, APN Outdoor interim CEO and chief financial officer said of the two decisions: “While it is disappointing not to renew the Yarra Trams contract, we are pleased to have had the opportunity of working together over the past 10 years.
“At the same time, we are delighted to have been appointed preferred partner to Metro Trains Melbourne for a further term.”
APN Outdoor has retained several contracts this year, locking in a five year contract with Sydney Buses, which was made on “improved financial terms”, retaining its Adelaide metro contract, and renewing its Tullamarine Freeway contract.
However, the company did not retain its Canberra Airport contract, which was picked up by QMS.
Total revenue for APN Outdoor was up 8% according to the half yearly results, at $162.3m. EBITDA climbed 7% to $37.2m but net profit after tax fell 19.3% to $15.76m.
Richard Herring, former CEO of APN Outdoor retired at the end of last month.
Who has won the Yarra Trams tender then?
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This is a bizarre interpretation of the facts, APN Outdoor definitely didn’t ‘opt out’ of tendering for the biggest tram network in the world…
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Some incorrect facts in this article.
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