QMS Media Limited this week announced its entry into the sports-venue advertising segment through a number of investments that expand and enhance its existing premium digital outdoor media portfolio across Australia and New Zealand.
• Total investment of $22.4 million to acquire the following equity interests and to fund the development of new digital signage by the target companies:
- 80% stake in Out and About Marketing and Media (OAMM), a leading provider of in-bowl digital stadium and other advertising at key sporting stadia across Australia and New Zealand.
- 50% equity stake in Live Docklands, which holds the rights to several digital advertising assets within Melbourne’s Etihad Stadium.
- 20% strategic stake in Sportsmate Australia, a leading developer of sporting apps across a number of popular sporting codes, including AFL, NRL, Cricket, Rugby, Soccer, NFL and NBA.
• Aligned with QMS’ strategy to continue to strengthen its existing platform and unlock additional value through multiplatform engagement with targeted and customised content.
• Acquisition and associated transaction costs is funded via a combination of existing debt facilities and a $20 million institutional placement.
QMS managing director and CEO Barclay Nettlefold said: “These investments are aligned with our strategy to continue to strengthen our portfolio of premium outdoor media assets and broaden our capabilities to engage with attractive, targeted audiences through multiple platforms with dynamic, customised content.
“Sporting venues are an ideal environment to connect with people, with highly engaged audiences, long dwell times, built-in digital infrastructure, and Wi-Fi connectivity. This is a significant opportunity for QMS to tap into an attractive, engaged and growing audience segment via investment in digital sports signage, technology and data to deliver tailored content through a number of channels in real time.”
QMS has entered into a binding agreement to acquire an 80% stake in OAMM for $10.0 million plus acquisition of $1.25 million in debt.
OAMM is one of Australia’s largest sports ground LED operators, providing a complete turnkey sports solution of high-profile, in-bowl and other advertising opportunities, including sports sponsorship, connected stadium Wi-Fi and digital rights across major stadia in key strategic markets in Australia and New Zealand, including:
• NSW / Sydney: Sydney Cricket Ground (SCG), ANZ Stadium, Allianz Stadium, Qudos Bank Arena, Spotless Stadium, Brookvale Oval, Shark Park, Leichhardt Oval, Campbelltown Stadium, and V8 Supercars Sydney
• VIC: AAMI Park, Simonds Stadium Geelong, V8 Supercars
• QLD: Suncorp Stadium, Gold Coast V8 Supercars
• WA: NIB Stadium, V8 Supercars
• NZ: All NZ Super Rugby venues, NZ V8 Supercars
OAMM reaches audiences of a broad range of sporting codes including NRL, Super Rugby in Australia and New Zealand, FFA (Soccer), AFL and V8 Supercars.
Ed Abbott, the CEO, will retain his 20% shareholding in OAMM and will continue to manage the business across Australia and New Zealand.
QMS has subscribed to 50% of the issued capital in LIVE Docklands, which holds the rights to digital screens, Wi-Fi and concourse signage at Melbourne’s Etihad Stadium, including:
• 1,500 Internet Protocol TV’s (IPTVs); and
• Two large-format external digital screens (one to be fully redeveloped).
• 12 concourse digital signs and experiential opportunities.
The rights are held under a long-term 5 + 2 year agreement with Etihad Stadium. The investment will also provide a further opportunity for digital and experiential developments in and around the busy concourse area of the Etihad precinct.
Highly complementary to OAMM, QMS’ investment in Live Docklands provides access to an additional 2 million supporters who attend AFL, FFA and Big Bash Cricket events at Etihad each year.
QMS will provide financing facilities to Live Docklands to fund contractual obligations and the development of new landmark digital signage.
QMS has completed the acquisition of a 20% stake in Sportsmate Australia, a leading Australian developer of sporting apps that connect fans with their favourite sports and clubs across a broad range of sporting codes, for $1.1 million.