Ooh Media revenue leaps 20% as it prepares for APN Outdoor merger
Outdoor company Ooh Media, which is in the midst of a merger with APN Outdoor, has posted a rise in profit of more than 30% on the back of a 20% leap in revenue for 2016.
Ooh Media has declared a gift for shareholders with revenue up 20.1%
Reporting its results for the 2016 calendar year, the company saw revenue rise to $336.1m, up 20.1% on the previous year, while the gross profit of $144.9m was a lift of 30.3%.
Ooh reported underlying earnings before interest, tax, depreciation and amortisation was up 27.4% to $73.5m.
Brendon Cook, Ooh Media CEO, said the result had come on the back of strong support for roadside outdoor and growing digital revenue.
“We are extremely pleased with business performance for 2016,” Cook said.
“We delivered an increase across key financial metrics including revenue growth across each product. The strong results reflect the ability of the Ooh Media team to execute our strategy in developing a network which offers advertisers the ability to deeply engage with audiences.
Brendon Cook said growth had been across the company’s assets.
The year included Ooh’s acquisition of 85% of Junkee Media for $11.05m as it moved to create a content pipeline for its out-of-home asserts.
“Our physical assets, combined with engaging content and the ability to provide growing connections through online, mobile and social media, is why advertisers are increasingly finding our offering compelling compared to other advertising mediums,” Cook said.
“As we further our data and analytics capabilities, the solutions we develop will drive further value for our clients through research and reporting of measurable outcomes. We maintain a disciplined approach to digitisation of our assets, with an inventory of high-quality assets and a planned development pipeline.”
Highlights for the year included road revenue climbing by 12.3% to $124.6m, retail revenue up 10.2% to $109.2m and Fly revenue up 2.8% to $56m.
In December Ooh Media announced it would be merging with APN Outdoor to create Australia’s single biggest out of home advertising company, with the deal expected to create savings across the two businesses of at least $20m per year.
Cook said with the merger still going through the approvals process Ooh would not provide guidance of the outlook for 2017.
Ooh declared a fully franked dividend of 10 cents per share, up 49.3% on the previous year.
Goo on you Brendan. Great result.
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So clearly advertisers are paying way too much for outdoor and their digital platforms :-/
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