Ooh!Media poised to exceed 30% digital target by year end

Rachael Micallef
By Rachael Micallef | 25 August 2015

Out of home media company Ooh!Media has reported net profit after tax (NPAT) of $3.8 million, a boost of 119%, in its half year results.

Revenue for the company reached $124.1m, an increase of 6% on the prior corresponding period while its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 51% to $20.2m.

Ooh!Media CEO Brendon Cook said in addition to its strong performance, the company had progressed in executing its strategy, particularly when it comes to rolling out digital initiatives.

Ooh!Media noted that its digital infrastructure roll out is on track, with digital revenue growing to 29% of group revenue for the six months to 30 June, putting the company on track to meet and exceed its 30% target set for the full year.

“This positions us well for long term growth while at the same time maintaining our audience reaching leadership position,” Cook said.

“Importantly, by concentrating not only on top-line revenue growth but also on portfolio contract management and greater leveraging of our assets, we have delivered stronger EBITDA and NPATA growth of 51% and 124% respectively.”

Operating expenditure increased to $22.8m as a result of an increased in investment of digital capabilities along with the timing of its annual incentive plan provisioning.

Revenue for road and retail division grew 4.7% and 8.6% respectively to $50.4m and $40.6m. Its entire Australian business grew 9% to $122.0m while its New Zealand revenue.

Ooh!Media also pointed to innovation, including the launch of its small and medium size business content offering, ShortPress as how it aims to broaden its offering.

“This delivers an integrated 360 degree online/offline offering to major clients wanting to reach what is a unique and valuable audience,” Cook said.

“This ensure our focus is on long term digital strategy, not just a digital site strategy, which is a key difference in our approach.

“With our existing network of assets, we are driving innovation by making investments to digitise major site such as Bourke Street in Melbourne, that are at the highest end of revenue generation per site in the industry.”

Ooh!Media listed on the ASX in December last year. As a result of its half year results, the company has upgraded its full year EBITDA forecast to a range of $53 – $55m from a prospectus forecast of $48.6m.

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