QMS Media yesterday announced its financial results for the six months to 31 December 2016 (H1 FY17).
Financial highlights:
• Strong revenue and earnings uplift driven by landmark digital developments and contribution from New Zealand acquisitions
• Revenue up 78% to $79.0m (H1 FY16: $44.4m)
• Underlying EBITDA up 67% to $17.9m (H1 FY16: $10.7m)
• Digital media revenue accounted for 66% of Australian Media Revenue and 43% of Total Group Media Revenue
• Statutory NPAT up 32% to $7.5m (H1 FY16: $5.7m)
Operational highlights:
• Strong delivery on premium landmark digital rollout across Australia and New Zealand
• Significant growth in New Zealand following successful integration of iSite
• Expansion into in-stadia sports advertising – QMS Sport
QMS managing director and CEO Barclay Nettlefold said, “Our strong result reflects the continued delivery of our organic digital development strategy, and the strong performance of our New Zealand business following the acquisition and integration of iSite in FY16.
Barclay Nettlefold
“Digital is continuing to drive strong double-digit growth in out-of-home across Australia and New Zealand, and remains core to our business. Two-thirds of our Australian media revenue and 43% of group media revenue came from our digital assets in the first half. Our landmark digital rollout is progressing ahead of expectations, and we are on track to exceed our original target, with over 68 sites now expected to be switched on by the end of the financial year.
“The media landscape is continuing to evolve toward more coordinated and targeted campaigns, and we are well placed to unlock additional value from our portfolio by leveraging customised, dynamic digital content across multiple platforms. With QMS Sport, we now have a digital presence in major sporting stadia across Australia and New Zealand. This provides us with access to a large, highly engaged audience in a connected environment, which is ideal for delivering tailored content through in-venue digital, mobile, social and experiential channels in real time.”
FY17 outlook upgraded
QMS has upgraded its full year FY17 EBITDA guidance to $37m, including a part-year contribution from the Sports acquisitions of approximately $1m (before transaction costs).
The above guidance reflects:
• Ongoing strength of out-of-home industry fundamentals in Australia and New Zealand
• Delivery of QMS’ upgraded landmark digital billboard target of 68+ in FY17, and a full period contribution from billboards switched on in FY16.