Out of home company Ooh!Media has reported double-digit revenue growth, up 11% for the first half of 2018, with above-market revenue growth in its 'locate' category.
Signifcant improvements were also noted in its 'fly' and 'road' categories acting as significant contributors.
In a statement to the ASX, the company revealed that Earnings before interest, taxes, depreciation, and amortization increased by 11% to $37.9 million for the first half of 2018, while its revenue also increased by 11%, reaching $192 million when compared to the first half of 2017.
The company's Locate category, which includes advertising across cafes, pubs, gyms, social sport centres, universities, medical centres and CBD office towers, yielded the strongest growth across out of all categories, with revenue up by 31%.
The results in the category have been attributed to the successful integration of the digital display business Executive Channel Network and initiatives last year to restructure the sales team and re-position the go-to-market proposition.
“We are leading the industry in creating a new media business that is driven by data, content and innovation, connecting advertisers to more audiences with the right message, at the right moment and in the right location," Ooh!Media CEO Brendon Cook says.
"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."
Cook says the strong first-half results for the year were also based around the company's position in the digital out of home space, with the company now operating 8000 digital panels across Australia and New Zealand.
“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," he says.
“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."
The Road category delivered double-digit sales growth up 16%, across digital and classic assets. Classic metro sites also delivered an increase in revenue for the period.
However, Ooh's retail sector was down 5% due to a reduced spend from some of the company's major advertisers.
The company stated it remains on track to deliver its full-year guidance for the year ended 31 December 2018 (FY18).
Addressing the recent buyout of fellow out of home company Adshel, the company stated that it fully expected the acquisition to be completed this year.
Earlier this year, oOh!Media announced it had entered into a binding agreement to acquire 100% of the share capital in Adshel from HT&E Limited for $570 million.
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