Media profit: APN Outdoor reports record full year result

Revenue up 10% to $330.9 million

Highlights for the full year results from APN Outdoor include:

• Revenue up 10% to $330.9 million, above guidance of 8.5% to 9.0% revenue growth
• Digital revenues comprise 34% of total revenues (up from 23% in FY15)
• Statutory NPAT up 18% to $48.4 million

Full year 2016 operational highlights include:

• 35 new large-format digital (Elite) screens installed, of which 31 were in the second half
• Successfully integrated acquisitions of iOM and Metrospace
• Announced transformational merger with oOh!media to create a leading diversified out-of-home and online media group, expected to complete in May 2017

Commenting on the results, APN Outdoor CEO Richard Herring said:

“We are very pleased with the performance of APN Outdoor over the past year. The company has today announced another record result that was above the most recent guidance provided to the market. Statutory net profit was up 18% to $48.4 million, and importantly operating cash flow was up 19% to $66.3 million.

“The strong growth in the business over the past 12 months was due to the continued rollout of digital screens within APN Outdoor’s Australian and New Zealand footprints. Digital screen revenues now represent over one-third of Group revenues, and will continue to grow in line with the company’s focused growth strategy.

“A total of 35 large-format digital (Elite) screens were installed during the year, with 31 of those commissioned in the second half. This rollout drove a rapid increase in digital revenues given the greater yield that can be generated from a digital site. Concurrently, it reduced classic billboard revenue as sites transitioned to digital. The underlying performance for production and installation was solid. Trial of our CATCH commuter offering is now in market on 50 buses in Sydney with positive initial results.”

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