QMS reports 65% profit climb to $16.5m

Outdoor media company QMS has reported a net profit after tax of $16.5m for the first half of the 2019 calendar year, up 65% from the corresponding period last year.

Digital revenue makes up 81% of Australian revenue, and QMS stated that Australian media revenue continues to grow ahead of the market.

QMS’ financial highlights (Click to enlarge)

QMS acquired nine digital billboards during the six-month period. Media revenue in the Australian market is up 6.3%, and large-format billboard revenue is up 8.3%.

The company reported $128.9m statutory revenue, up 23%.

QMS Australia’s revenue was $62.8m, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $21.6m for the six-month period ending 30 June 2019.

QMS’ financials (Click to enlarge)

EBITDA for the whole QMS group sits at $56.75m and underlying EBITDA at $33.92m, driven by Australia and New Zealand’s results and the acquisition of TGI Systems Corporation as part of the QMS Sport business, which the company states has already delivered a number of contract wins.

QMS Sport reported revenue and underlying EBITDA growth of 119% and 251% respectively, of which the TGI acquisition contributed to.

CEO Barclay Nettlefold said the results are “extremely pleasing, in a challenging media landscape”.

“Our unique diversification strategy, by both category and geography, provides us with a clear point of differentiation from our competitors,” he said.

“Our singular focus on quality digital assets and a market-first approach to audience data and insights, delivers value for advertisers and this is reflected in our Australian and New Zealand results. QMS Australia continues to grow media revenue ahead of the market and we have positive momentum heading into the second half of the year with Q3 CY19 media revenue for QMS Australia expected to be 15-20% up on the same time last year.

Nettlefold: QMS is performing ahead of the market 

“The year to date results in QMS Sport have been extremely encouraging with the growth in revenue and underlying EBITDA in the half reflecting our previous investments in sports technology and rights, and the initial contribution from TGI following the completion of that acquisition during the half year.”

In addition to the TGI acquisition, the recently announced acquisitions of TLA and Stride create a “unified and powerful” platform and a “significant growth opportunity”, according to Nettlefold.

Australia’s largest player Ooh Media recently revised its profit expectations for the full 2019 financial year. Ooh’s results for 1 July, 2018 to 30 June, 2019 are released on Monday, 26 August. Last week it said its expected profit is now between $125m and $135m, a significant drop from its original guidance of between $152m and $162m.

Ooh Media’s CEO Brendon Cook noted that there has been a major reduction in roadside billboard bookings, driven by a drop in ad spend in the automotive and financial sectors. While Ooh has less visibility over quarter four’s results at this stage, Cook said that it is currently sitting at +6%, with a forecast of 13% growth at best and a 2% decline at worst.

“Deterioration in the market has been pronounced,” Cook noted, adding that August saw an “unprecedented decline”.


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