Former Adshel business contributes $65.9m to Ooh Media revenue since acquisition

Commute by Ooh, formerly known as Adshel, contributed $65.9m to Ooh Media’s total revenue for 2018.

According to Ooh Media’s annual financial results, the Commute business, which was acquired by Ooh Media for $570m on September 28, help boost total revenue by 27% to $482.6m.

Ooh Media acquired the Adshel business at the end of September

Earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4 of 2018 was $18.3m for Commute by Ooh. According to the update, Ooh Media expects six of its seven offices to be co-lated by February 25. Total synergies remain between $15-$18m, and will be achieved over the next two years.

But according to Pro-forma results, Adshel was down 1.8% year on year, to revenue of $223.3m. EBITDA held at $51.4m, according to the pro-forma results.

Overall, Ooh Media saw year on year grow across all its categories, as well as a 25% increase in underlying EBITDA. EBITDA climbed to $112.5m for the full financial year, while net profit after tax (NPAT) grew 4% to $31.6m.

Excluding Adshel, Ooh Media’s revenue climbed 9.6% to $416.8m for the full year, while EBITDA was up 4.6% from $90.1m to $94.2m.

Digital revenue makes up a large component of Ooh Media’s total revenue, climbing 27% year on year to $288.1m.

The biggest category to contribute to the full year results was road, bringing in $154.8m – up 12.9% from financial year 2017’s $137.2m.

Locate brought in the smallest amount of revenue, $42.8m, despite a climbed up 25.3%. Unlike last, no category suffered year on year decline.

Cactus Imaging and Junkee Media contributed $18.5m in total revenue, a 1% year on year increase.

Ooh Media’s 2018 financial results

In 2018, Ooh Media arranged $459m in debt facilities to refinance existing debt and partly fund the acquisition of the Commute business. This has increased by $70m in February 2019.

Ooh Media’s CEO, Brendon Cook, said 2018 was a transformational year for the business.

“The acquisition of Commute brings the highly complementary segments of street furniture and rail to our portfolio. This ensures Ooh has the most diverse and integrated national audience delivery network in the industry, extending our audience reach to well above 90% of the Australian population, and the largest cover in New Zealand,” he said.

A breakdown of Ooh Media’s different streams of revenue

Cook said the business would continue its investment in an operating system, which will enable clients to better utilise its digital network. “We expect this investment will deliver significant operating efficiencies to Ooh, including optimised property retention, higher sales and margin, and improvements in our staff to revenue ratio.”


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