It’s the financial report time of year again and oOh!media and QMS Media are both showing an increase in revenue for the six months to 30 June 2019.
In its announcement, oOh!media Limited is reporting its pro forma revenue has increased five percent to $304.9 million.
Its underlying EBITDA is down four percent to $56 million while underlying net profit after tax (NPAT) is down 24 percent to $9 million.
Its underlying NPATA of $18.2 million is up three percent.
These results are reported in accordance with the new leasing standard AASB16.
Looking across its product portfolio, it was Commute that delivered a strong contribution, up 13 percent on a pro forma basis.
Fly also increased its revenue by 13 percent while Locate by oOh! also delivered double-digital growth, as it was up 10 percent.
Meanwhile, Retail revenue grew by six percent, and Road declined by nine percent.
oOh! reports its Road format is typically driven by big brand-based advertising which was adversely affected during the federal election and softer macro-economic environment.
Alongside its results, oOh! has declared a fully franked interim dividend of 3.5 cents per share, which was steady on the prior corresponding period.
In its announcement, QMS Media is reporting revenue is up 23 percent to $128.9 million, with a gross profit up 85 percent to $90.5 million.
Like oOh!media, its results are also reputed in accordance with the new leasing standard AASB16.
Its revenue growth reflects growth across all its business segments, driven by digital revenue across Australia and New Zealand as well as QMS Sport.
Its Gross margin increased 7.8 percent points due to high quality, higher margin digital billboards a key driver of margin expansion.
Underlying EBITDA grew 47 percent with each business segment contributing double-digit growth. EBITDA margins were up 4.0 percentage points. As expected, the benefits from technology and sports rights investments in prior periods are now being realised with strong margin expansion in QMS Sport.
Net Debt / Underlying EBITDA was 2.7x at 30 June 2019, down from 3.3x, reflecting strong earnings growth. It’s on track to achieve target net debt / underlying EBITDA ratio of less than 2.5x by 31 December 2019.
The board has declared a dividend of 1.2 cents per share (fully franked).
The QMS NZ and MediaWorks merger received regulatory approval in July 2019 with the transaction expected to complete in September CY19.