Just one week after revealing it had made an offer to acquire 100% of Adshel, APN Outdoor has updated the market with early guidance about its full year earnings for the 12 months ending December 2018. The company is expecting EBITDA of $92m to $96m.
Adshel owner HT&E has commented on “offers” it has received for its street furniture business, but has not referred to the APN Outdoor approach. HT&E however did refer to the bid it received from oOh!media, saying “it was not the most attractive offer… and does not offer compelling value for shareholders”.
An APN Outdoor statement to the ASX said: Revenue momentum continues to build following the company’s trading update at its AGM in April.
APO is now tracking headline 1H18 revenue growth of mid-single digits against the prior corresponding period, and high-single digits excluding the impact of the Yarra Trams contract loss in 2H17.
FY18 capex expenditure is expected to be in the range of $25 million to $30 million, in line with guidance provided by APO in its FY17 results presentation.
James Warburton, APN Outdoor chief executive officer and managing director, commented:
“The out-of-home markets in both Australia and New Zealand have remained robust in recent months and pleasingly our reinvigorated approach to sales continues to gain momentum.
“We are actively investing in data and technology to add value to our product proposition and drive the company’s next wave of growth.”