Val Morgan boss Damian Keogh will become CEO of the Hoyts Group from April, when Delfin Fernandez retires. He's got big plans for the network and says the movie and TV streaming business is still in the pipeline.
Keogh, the former MCN sales director joined the cinema network's sales house in mid-2011 and has driven big growth across its cinema advertising business as well as its outdoor network, while broadening its network with interstate acquisitions.
Cinema advertising in calendar year 2011 stood around $47 million according to SMI data (bookings via media agencies, not including direct bookings). For calendar year 2013 it stood at $72 million. Media agency bosses have noted the change in the way cinema is now sold by the company onto schedules.
Now Keogh will have oversight of the full Hoyts business, including 46 cinema's across Australia and New Zealand, as well as its kiosk movie rental business. He will also be tasked with delivering the streaming business first flagged in 2012.
After several pushbacks, Keogh would not be drawn on a launch date, but did not rule out partnering with other networks. He said though that the firm had not yet held direct conversations with others, such as free-TV networks.
"We will evaluate the best business model to maximise the benefits, whether that is going solo or in collaboration with other parties."
That response suggests any launch may be months rather than weeks away.
In the meantime, Keogh retains day-to-day responsibility across his current remit. As well as pointing out cinema as sales revenue growth, Hoyts Group chairman David Kirk said Keogh had pushed up its digital out-of-home network "over 60% in the past two years."
“I am excited about the opportunities in the filmed entertainment business generally. Hoyts is well positioned to profit from the changes we are seeing in the industry, both at the cinema and in our growing home entertainment business,” said Keogh.
Delfin Fernandez said leading the company has been "a privilege".
"After almost nine years as CEO, it's time to move on and transfer Hoyts to a new generation of leadership. I look forward to working with Damian, the board and the management team during the transition period, and to being available as an advisor to management after retiring as CEO."
Fernandez will continue to work with Mr. Keogh on a smooth transition of his role before he departs on 31 March.
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