QMS Media yesterday released its results for the year ended 30 June 2016. The highlights included:
• Revenue up 88% to $111.8 million (FY15 pro forma: $59.6m)
• Significant increase in underlying EBITDA to $26.8m (FY15 pro forma: $4.7m)
• Underlying EBITDA margin up to 24.0%, driven by digital (FY15 pro forma: 7.9%)
• Digital revenue up almost four-fold on FY15 pro forma:
− Australia: digital now 62% of Australian media revenue
− Group: digital now 40% of Group media revenue
• Statutory NPAT of $13.3m (FY15 pro forma net loss after tax: $4.3m)
• Final fully franked dividend of 1.5c per share (cps) declared.
Commenting on the result, managing director and CEO Barclay Nettlefold said, “Our strong growth in FY16 reflects the successful delivery of our digital development strategy and our expansion into the New Zealand market. Digital contributed 62% of QMS’ Australian Media revenue in FY16, which compares to an average 37% of revenues from Digital across the broader Australian out-of-home industry.
“The fundamentals driving strong out-of-home industry growth remain robust across Australia and in New Zealand. QMS is growing well above the market in Australia, with our Australian media revenue up 94% in FY16 compared to out-of-home industry growth of 17% to 18%, with demand for premium quality outdoor media assets remaining strong throughout the year.”
Regarding the FY17 outlook, the company reported:
QMS Media is seeing strong out-of-home market growth underpinned by –
• Disruption of traditional media. Growth of outdoor audiences
• CY15 market growth, 17% in Australia and 12% in New Zealand
• H1 CY16 up 18% in Australia and New Zealand. Advertisers continuing to embrace digital across multiple platforms
QMS is well placed to deliver strong revenue and earnings growth:
• Strong pipeline of new premium landmark digital sites – 21+ new signs in FY17, four already operational, 15 permitted
• Full-year contribution from acquisitions, FY16 digital conversions, Auckland Transport and the Bali Airport concessions.