APN Outdoor has reported a 10% revenue growth in the six months to 30 June 2016, but has downgraded its market guidance for the rest of the year due to a 'soft' advertising market.
The out of home (OOH) company saw revenue increase on the previous year to $150.6 million and earnings before interest, taxes depreciation and amortisation (EBITDA) up 31% to $34.8 million on the previous year.
Net profit after tax also increased 49% YOY to $19.5 million. The positive market growth has been largely driven by increasing audiences and a boost in digitisation.
However, despite the momentum, APN noted its total group revenue growth is lower than the Australian outdoor media market as a result of lower revenue growth in New Zealand. The total outdoor ad market grew at 18% on the previous corresponding period.
APN Outdoor has also downgraded its market guidance for the rest of the year, noting that its revenue and earnings are weighted to the second half of the year.
Its previously stated guidance of $88 million to $84 million was revised to $79 million to $84 million as a result of a softening ad market.
“We have seen a significant reduction in market activity in recent weeks for the September to November period which has arisen at least in part, from a combination of an extended national election process closely followed by the Olympics,” APN said in a statement.
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