APN has seen a “successful” half year performance, with its statutory net profit after tax (NPAT) reaching $12.9 million, as a result of its growth initiatives and innovation in the out of home sector.
The company, which listed on the ASX last year, has seen its pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) increase by 110% on last year to $26.6m, while its pro forma net profit after tax before acquired amortisation (NPATA) increased 188% to $14.0m.
APN Outdoor CEO Richard Herring said the performance of the company is the result of the “successful execution of our growth strategy” as well as the strength of the out of home industry.
“We remain confident that our current initiates, including large format digital screen development, will enable continued leadership in the outdoor industry in Australia and New Zealand,” Herring said.
“The outdoor industry's attractiveness to advertisers continues to strengthen with increasing audience potentials due to population growth and a rise in daily journeys.
“Against a backdrop some other media's audience declines, outdoor's relevance to advertisers is increasingly being recognised. It has been further boosted by recent investments in technologies and product that broadens the scope of the medium’s use.”
APN Outdoor pointed to the development of its Elite Screen product, noting it remains on track to deliver a target of 17 new Elite Screens in 2015, with 12 approved so far.
In addition, its XtrackTV product will be expanded to Adelaide later in the year, along with the launch of 2000 beacons into the Sydney bus network to drive “deeper advertiser engagements.”
It also said the acquisitions of New Zealand-based Roadside Attractions last week will not only complement its existing portfolio but provide an opportunity for digitisation.
As a result of its growth and its current view of the outdoor market for the remainder of the year, APN Outdoor has revised its pro forma EBITDA forecast for the full year to “an increase of mid-teens percent above the prospectus forecast of $53.7m.”
“Overall the past six months has been a successful period for APN Outdoor, as the company continues to demonstrate superior financial management, leadership in assist development and proving the power of the medium to advertisers,” Herring said.
“We remain confident and focused on executing our growth agenda into the future.”
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