APN Outdoor profit warning hits out of home advertising sector as share prices tumble
APN Outdoor has lost a third of its value after warning of weaker market conditions in the out of home advertising market, with the share sell off extending to rivals Ooh Media and QMS Media which also suffered heavy falls.
Despite posting largely positive first half results – revenue climbed 10% and earnings 31% – APN Outdoor’s share price tumbled more than 33% to $5.49 as it downgraded its full year profit guidance.
The decline wiped half a billion dollars of its value with a market capitalisation now of $915m.
APN Outdoor said that while the 2016 calendar year had started well, it has witnessed a “significant reduction in market activity for the September to November period”.
It blamed the “extended national election process” and the Olympics for the decline.
APN Outdoor said its EBITDA will now sit between $79m and $84m, down from the previous forecast of $84m and $88m.
The warning set nerves jangling across the sector with share prices at Ooh Media and Queensland-based QMS also sliding sharply.
Ooh Media, which is due to release its financial results tomorrow, fell 17% to $4.64, while QMS was down almost 12% to $1.21.
The companies have market caps of $670m and $365m respectively.
topics
Advertising
APN Outdoor
Marketing
oOh
Ooh Media
out of home ad firms
Out of home advertising
out of home share prices
QMS
