oOh!media has released its financial results for the year ended 31 December 2016 (CY16) which included more than 20% year on year revenue and profit growth, earnings margin expansion and an increased dividend payment.
Financial highlights included:
• Revenue of $336.1m, up 20.1% from CY15 including growth across all products
• Gross profit of $144.9m, an increase of 30.3% from CY15, driven by strong performances in Road and Locate by oOh!
oOh!media’s CEO, Brendon Cook, said: “We are extremely pleased with business performance for 2016. 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.
“Our physical assets, combined with engaging content and the ability to provide growing connections through online, mobile and social media, are why advertisers are increasingly finding our offering compelling compared to other advertising mediums. 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.”
All products achieved positive revenue growth during the year:
• Road revenue of $124.6m, up 12.3% on CY16, driven by momentum of new assets installed in late 2015 and 2016 including the introduction of 29 large-format screens in premium locations during CY16
• Retail revenue of $109.2m, up 10.2% on CY16, attributable to the additional 39 large-format digital EVOKE screens and an additional 200+ ShopaLive screens during CY16
• Fly revenue of $56.0m, up 2.8% on CY16, replacing revenue lost by T3 Sydney tender loss, attributable to part-year developments in securing wins and asset rollouts at T4 Melbourne and Brisbane Virgin Australia Domestic Terminal, with the extension and rights expansion of the Cairns Airport mandate
• Locate by oOh! revenue of $28.9m, up 196.4% on CY16 driven by the successful integration of the CY15 Inlink acquisition, strong organic growth and the acquisition of ECN in late 2016
During CY16, oOh!media announced a proposed merger with APN Outdoor Group.
The board of oOh!media believes the merger is in the best interests of oOh!media’s shareholders, in the absence of a superior proposal. Shareholders will have a chance to vote on the merger at the Scheme Meeting, with the specific date to be announced in the Scheme Booklet, to be published shortly.