APN Outdoor posts double-digit revenue growth for first half of 2016
Outdoor company APN Outdoor (ASX: APO) has seen its revenue grow by 10% in the first half of 2016, with earnings up 31%.
Revenue for the company was up $14.3m from $136.3m in the first half of 2015 to $150.6m in the first half of this year, while the company posted earnings of $34.8m – up $8.2m on the first half of 2015 when it reported EBITDA of $26.6m.
The positive results for APN Outdoor come amidst a strong performance in the wider Australian outdoor media market, which, according to the company, is up 18%.
The company’s total revenue growth was lower than the wider Australian Outdoor, with APN Outdoor attributing the difference to the “low revenue growth in New Zealand and non-media growth-related drivers of production and installation revenue”.
Digital was a key driver of the company’s revenue, generating 32% of all revenues.
The company said it has “maintained a clear leadership in large format digital billboards” with an addition 16 ‘elite screens’ added so far across Australia and New Zealand.
“In response to strong demand from advertisers and agencies we have accelerated our large format digital roll-out programme in 2016 and are targeting 20 to 25 new digital screens,” an APN Outdoor spokesperson said.
In terms of formats, billboards and transit remain APN’s largest revenue formats with billboards generating $70.3m in the first half of this year and transit $48.2m. Rail and airport accounted for $12.8m and $19.3m.
APN Outdoor said it expects a revenue increase for the 2016 calendar year of 6% to 8% and full year EBITDA to be in the range of of $79m and $84m.
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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Hi Miranda, I think you may have got the earnings the wrong way round…? ‘Revenue for the company was up $14.3m from $150.6m in the first half of 2015 to $136.3m in the first half of this year’
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Hi Loopy,
You’re quite right! I’ve fixed that error up.
Cheers,
Miranda – Mumbrella
I’m having a hard time understanding why, on the strong posting, the share price has plummeted 33% since open…
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