Posts Tagged ‘outdoor’

  • Local wide format sector gets outdoor industry boost

    The local wide format printing sector is riding high off the back of two consecutive quarters of strong growth from the Australian out-of-home industry. 

    The signage and outdoor advertising industry recorded 5.2 per cent growth for the year’s second quarter compared to the previous year along with AU$6.5 million increase in revenue, to $126.5 million.

    The second quarter boost follows hot on the heels of the industry’s first quarter increase of 3.8 per cent, with sales revenue increasing to $122.1 million from the previous year’s first quarter result of $117.6 million.

    According to the Outdoor Media Association (OMA), year to date revenue for the industry has increased by 4 per cent, tracking at $248.7 million, up from $239 million for the same time last year.

    For Charmaine Moldrich (pictured), CEO of the Outdoor Media Association, the continued growth in the out-of-home (OOH) reflects its ongoing relevance in the increasingly digital multichannel marketing mix.

    “The OOH industry continues to remain at the competitive forefront of today’s changing media landscape by understanding its audiences, embracing technology, being a responsible community player, and showcasing the medium’s unlimited creative potential,” said Moldrich, “People are spending a greater amount of time outdoors, shopping and commuting, solidifying OOH as the last true broadcast medium in today’s fragmented media market.”

    In April, the OMA reported the industry’s first quarter growth at 3.8 per cent on the previous year’s results, with the yearly results from 2012 representing two per cent growth on the previous year, recording over $500 million in revenue for the 12-month period.

    “Growth in the first quarter is a reflection of the industry’s ability to weather the vagaries of the market. OOH continues to maintain its position as a channel that is in a space of its own, growing while other mainstream media channels are being challenged,” said Moldrih in April.

    The industry’s category figures for the 2013 second quarter includes ‘roadside billboards’ (over and under 25 square metres) at $39.8 million, ‘roadside other’ (street furniture, taxis, bus/tram externals, small format) with $45.1 million, ‘transport’ (including airports) at $21.1 million and ‘retail’ recording $20.5 million. 

    The OMA’s continued out-of-home growth result come as trans-Tasman media giant, APN, looks at selling off its lucrative Outdoor Media business, with the company considering a major restructure that could see it sell out of its Adshel and other outdoor advertising divisions in exchange for full control over its radio business.

  • APN looks at offloading outdoor media

    APN News & Media may trade in its outdoor media stake in the local market in exchange for greater radio reach, with the company considering selling off its half-share in its outdoor advertising business in a bid to pay down debt.

    According to a report in The Australian Financial Review this week, the trans-Tasman media company is looking at a major restructure that could see it sell out of its Adshel and other outdoor advertising divisions in exchange for full control over its radio business.

    The move, which is one of several options being considered by APN’s new chief executive Michael Miller (pictured), is likely to see the company’s extensive print portfolio lose much of its large format production footprint.

    The company has been at pains to reduce its debt levels since February’s boardroom battle, which saw the sudden resignation of former CEO, Brett Chenoweth and former chairman, Peter Hunt along with five other directors.

    In late February, the company told investors it would continue with its debt reduction strategy by selling off assets. In a statement to shareholders, the company said:

    APN will reduce debt by a further $40-50 million in 2013. This will be delivered by organic earnings including the cost reduction program in publishing, as well as small asset and property sales.

    The company reduced its debt by $180m during 2012. This was achieved through asset sales, the formation of the APN Outdoor joint venture and a focus on cash management. Reducing APN’s debt levels is an ongoing objective.

    The announcement followed moves to reclaim cash with the proposed sell-off of its Christchurch, Oamaru and Wellington publishing businesses in NZ.

    In its financial year presentation to shareholders, the company said it would continue with its program in the NZ Media business, which included the proposed consolidation of printing operations to a single company owned plant.

    Earlier this year, the company posted a net loss of A$-456 million for the financial year ending 2012, a 13 per cent slump in revenue from the previous year.

    Although APN is considering offloading its outdoor media business – and large format printing capacity along with it – the company’s new chairman, Peter Cosgrove, is backing print.

    In April, he told investors that, despite poor results from its print media divisions, the company remained committed to its print media.

    In a statement, he said:

    “APN believes there is a strong future in regional newspapers to provide local news to local communities and our strategy will be clearly focused on meeting this need for our readers and advertisers.”