Outdoor giant oOh!media has grown its revenue by 11 per cent in the HY ending June 30, also growing its EBITDA by the same amount.
Revenue for the 1HY18 came to $192m, with gross profit up 16 per cent to $87.6m. The margin of gross profit also increased, from 44 per cent in the prior corresponding period (pcp) to 46 per cent.
EBITDA came to $36.3m, from $31.9m in the pcp.
Digital now accounts for 64 per cent of oOh! Revenue, up from 52 per cent in the previous HY, the first reporting period in which it overtook classic revenues.
In the company’s last FY results, that figure climbed to 60 per cent, showing consistent growth in digital from 35 per cent digital in 2015 and 45 per cent in 2016.
The company splits its results into six segments, Road, Retail, Fly, Locate, New Zealand, and Other.
Within Other sits both Junkee Media and Cactus Imaging, the printing arm of the company purchased in 2016. The Other segment grew its revenue by 16 per cent, from $7.9m from $9.2m, however Australian Printer did not get a response back from the company relating to how much of the increase came from Cactus Imaging.
In the Road segment of the business sales were up 16 per cent, which the company attributes to growth in both its digital and classic sites, which it says delivered a strong increase in revenue for the period.
Retail revenue is down by five per cent, which the company says is a result of reduced spend from major advertisers.
The Fly segment saw an 18 per cent increase in revenue from the last quarter of FY17, coming to $29.3m from $24.7m.
Locate increased revenue by 30.8 per cent, coming to $20.8m from $15.9m in the pcp.
Brendon Cook, CEO, oOh!media says, “oOh! has delivered another strong result with solid revenue growth demonstrating the value proposition of our product offering across the most diversified portfolio in the industry.
“That diversity provides exposure to the broadest range of out of home segments and underlying lease contracts enabling us to deliver sustainable revenue growth while also mitigating periodic fluctuations in advertiser spend in specific categories and products.
“We are also successfully driving gross margin improvement in both percentage and absolute dollar terms.
“At the same time, we are implementing our strategy to invest for future growth. As we have said consistently, this year marks a transformation in our business as we build our platform to the next level.
“We are leading the industry in creating a new media business that is driven by data, content, and innovation, connecting advertisers to more audience through our extensive network of signs more easily, effectively, and efficiently.
“The investments we are making in our people, our systems and our network ensure that oOh! is at the forefront of the Out Of Home sector in creating a unique platform that delivers the next phase of revenue growth and sustainable value creation for shareholders through delivering results to our clients.”
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