QMS Media has announced its financial results for the six months to 30 June 2019 (H1 CY19).
Group Statutory Financial highlights:
• Revenue up 23% to $128.9 million (up 24% to $130.5 million pre AASB 16)
• Gross profit up 85% to $90.5 million (up 45% to $70.9 million pre AASB 16)
• Gross profit margin of 70% (54% pre AASB 16)
• Underlying EBITDA up 144% to $56.4 million (up 47% to $33.9 million pre AASB 16).
• NPATA up 41% to $21.9 million (up 31% to $20.3 million pre AASB 16)
• NPAT up 65% $16.5 million (up 49% to $14.9 million pre AASB 16).
Commenting on the results, QMS Group chief executive officer Barclay Nettlefold said:
“Our operational and financial results for the first half of 2019 are extremely pleasing, in a challenging media landscape. Our unique diversification strategy, by both category and geography, provides us with a clear point of differentiation from our competitors.
“Our singular focus on quality digital assets and a market first approach to audience data and insights, delivers value for advertisers and this is reflected in our Australian and New Zealand results. QMS Australia continues to grow media revenue ahead of the market and we have positive momentum heading into the second half of the year with Q3 CY19 media revenue for QMS Australia expected to be 15-20% up on the same time last year.
“The year to date results in QMS Sport have been extremely encouraging with the growth in revenue and underlying EBITDA in the half reflecting our previous investments in sports technology and rights, and the initial contribution from TGI following the completion of that acquisition during the half year.
“The diversification of QMS Sport as a global integrated sports platform represents a significant growth opportunity for the Company. The TGI acquisition plus the recently announced acquisitions of TLA and Stride create a unified and powerful technology, infrastructure and digital media platform with extensive relationships across top tier international sporting organisations, clubs and brands.”
The company noted revenue growth of 24% reflects growth across all business segments, driven by digital revenue across Australia and New Zealand and the positive contribution of QMS Sport.
Gross margin increased 7.8 percentage points due to high quality, higher margin digital billboards a key driver of margin expansion.
Quality landmark digital billboards remain the primary focus for QMS Australia.