Ooh Media’s digital assets contribute 52% to half-yearly revenue
Ooh Media’s half-year results have seen digital out of home dominate total revenue for the first time, contributing 52% of total revenue for the six-month period.
The out-of-home company’s revenue was up 18% year on year, to $173m, and its net profit was up 22.5% to $7.3m.
EBITDA (earnings before interest, tax, depreciation and amortisation) climbed 19% to $32m.
Of total revenue, digital contributed $90.2m, up 38.1% year on year.
The company’s total digital asset portfolio includes 8,000 screens and eight online platforms.
Brendon Cook, CEO of Ooh Media, said the performance reflected the sector’s strength and increasing market share.
“We offer advertisers a portfolio of products whose complementarity and diversity enables us to deliver strong group revenue and profit growth,” he said.
“We are executing our end-to-end digital strategy, investing to maintain our market leadership position, and continuing to deliver innovation and effective solutions for advertisers.
“We will also continue to explore opportunities to further strengthen and develop our new media strategy and enhance shareholder value through organic growth and acquisitions.”
Ooh Media’s Brendon Cook is pleased with the results
A statement on the ASX said the growth was both organic, and from new businesses acquired during H2 2016 – Junkee Media, Cactus Imaging and Executive Channel Network – which have helped grow Ooh’s audiences across the Millennial market and CBD environments.
Cactus Imaging and Junkee Media contributed a combined revenue of $7.9m, up 4.6% year on year.
The ASX release said Ooh Media expected earnings contributions to “significantly improve” as integration with Ooh Media’s core operations matured.
Looking across Ooh Media’s network, road, retail, and Located by Ooh! all saw increases in growth, reporting $63.9m (12%), $56.6m (23%) and $15.9m (19%) respectively.
Fly was the only category to suffer a decline, down 7% year on year, to $24.7m.
The company attributed $2.6m in total capital expenditure to its digital strategy.
Ooh Media’s failed merger proposal with APN Outdoor totalled $2m, which was expensed as non-operating items. The company did not pay any break free in connection with the termination of the Scheme Implementation Deed.
Depreciation and amortisation expenses rose from $12.6m to $15.2m (21.4%).
Great result, Brendan. Well done to you and your lot!
Alan Robertson
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