APN Outdoor has reported its full year results for FY17. Key highlights include:
• Revenue up 4% to $342.9 million
• Digital revenue up 13%
• Underlying1 EBITDA up 4% to $90.3m
• Statutory NPAT down 9% to $44.0m (after $6.0m of non-recurring items post tax)
Commenting on the FY17 results and his appointment, APN Outdoor’s new chief executive officer James Warburton said:
“I am absolutely delighted to be back in the media industry, an industry that I love and enjoy and I thank the APN Outdoor board for the opportunity they have given me to run the company.
“The FY17 result was a credible outcome in a challenging environment. Underlying EBITDA of $90.3m was within our guidance range provided in August, albeit at the lower end of the range.
“At only circa 6% of the overall advertising industry, the out-of-home industry has untapped potential. In addition, our contract renewal exposure for 2018 and 2019 has reduced to single digits given the recent renewals won, including Sydney Trains just last week.
APN Outdoor has a clear strategy going forward, focused on the evolution of APN Outdoor as we shift to become an audience-led, sales-centric media business.”
The Company is mitigating the $7 million EBITDA Yarra Trams contract impact.
Year-to-date trading at February 20 2018 is in line with the company’s expectations.
Versus the prior corresponding period:
• 1H18 is up low single digits on early indications
Excluding Yarra Trams:
• 1Q18 is up low single digits with good visibility
• 1H18 is up mid single digits on early indications
• Revenue and EBITDA is skewed to the second half of the year.
APN Outdoor will be investing ~$2 million during FY18 in innovation and new systems to support an audience and customer-led go-to-market sales strategy.
Digital billboard conversion rollout continues with 20 to 25 new digital (Elite) screens to be commissioned in FY18. Capital expenditure for FY18 is expected to be in the range of $25 million to $30 million.