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Print delivers in strong results for oOh!

Monday, 20 August 2018
By Wayne Robinson
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Outdoor media infrastructure provider achieved double-digit revenue growth of 11 per cent, with improved gross margin and underlying earnings for the half-year ended June 30, although the stock market was unimpressed, with oOh! Shares falling by two per cent on the news.

The company says it leads the industry in driving digital transformation across its portfolio, with digital revenue as a percentage of total sales climbing to almost two thirds of its revenue, 64 per cent, for the period.

The 11 per cent growth was in underlying EBITDA, which increased to $37.9m with underlying NPATA lifting by two per cent to $14.9m.

Revenue from its in-house print provider Cactus Imaging continued to grow, demonstrating, says the company, its value to the group. The company bought Cactus – founded by Warwick Spicer and Keith Ferrel in 1992 – from Opus Group two years ago for $6.1m.

The company says it is continuing to benefit from above-market revenue growth in Road at 16 per cent with ongoing significant improvements in its Fly – which was up by 18 per cent – and Locate businesses from the second half of last year. Retail suffered a five per cent drop.

While oOh! continues to digitise assets in premium locations, classic (print) metro sites also delivered a strong increase in revenue for the period.

Financial highlights included revenue of $192m, up 11 per cent from the half year ended June 30 last year, gross profit of $87.6m, up 16 per cent on 1H17, and an increased gross profit margin of 46 per cent compared to 44 per cent in 1H17.

Across the Tasman oOh! posted a strong turnaround in revenue from the prior corresponding period (up 19 per cent) despite the New Zealand market being nearly flat in the first half.

The company maintained its Out Of Home industry position, with some 8,000 digital panels across Australia and New Zealand,

12,000 classic (print) panels and eight online platforms

CEO Brendon Cook, 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.”

The Adshel acquisition is now in the hands of the ACCC, oOh! has raised all the necessary finance to fund the $570m acquisition.

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