Ooh Media has announced double-digit revenue growth with improved gross margin and underlying earnings for the half-year ended 30 June.
It posted a revenue of $192.0 million, up 11 percent, from the half year ended 30 June 2017. The gross profit of $87.6m was up 16 percent on for the first half of 2017.
Underlying EBITDA increased by 11 percent to $37.9 million with Underlying NPATA lifting by two percent to $14.9 million.
Ooh Media continues to benefit from above-market revenue growth in Road with ongoing significant improvements in its Fly and Locate businesses from the second half of last year.
Ooh Media in driving digital transformation across its portfolio with digital revenue as a percentage of total sales climbing to 64 percent for the period.
The company reported that it remains on track to deliver its full year guidance for the year ended 31 December 2018 (FY18).
Ooh Media’s chief executive, Brendon Cook, says the company has delivered another strong result with solid revenue growth “demonstrating the value proposition of our product offering across the most diversified portfolio in the industry”.
“That diversity provides exposure to the broadest range of Out-of-Home segments and underlying lease contracts enabling us to deliver sustainable revenue growth while also mitigating periodic fluctuations in advertiser spend in specific categories and products."
He says the company are also successfully driving gross margin improvement in both percentage and absolute dollar terms.
“At the same time, we are implementing our strategy to invest for future growth. As we have said consistently, this year marks a transformation in our business as we build our platform to the next level.”
The revenue growth comes ahead of Ooh Media's acquisition of Adshel. At the end of June, Ooh Media won the bidding war to acquire Adhsel from Here, There & Everywhere (HT&E) for $570 million.
Completion of the acquisition is expected this year and is subject to the Australian Competition and Consumer Commission's (ACCC) approval.
When the news broke, StopPress spoke to media agencies for their thoughts on the merger and the tone was largely positive, with the belief it will drive best practice and open opportunities for clients and planning teams.
In other out of home news, Adshel New Zealand has announced the expansion of its Adshel Immerse portfolio of products with the addition of ‘Adshel Live Panoramas’, combining Adshel’s static Panorama format with the digital capability and technology of Adshel Live.
Adshel Immerse will now allow another option for advertisers to wrap an entire bus shelter containing a digital screen and utilising all six creative rotations on that screen exclusively.
Adshel sales and marketing director Ben Gibb says its traditional Panorama product has been a popular way of delivering large format impact at street level.
“In recent years we’ve converted some of our best Adshel Immerse sites to Adshel Live sites. Adshel Live Panoramas will enable advertisers to completely takeover the bus shelter and the digital screen. To combine the impact of a Panorama with the opportunity to engage audiences further across all six creative rotations on our high-definition digital screen is extremely appealing to our clients.
“We’re initially launching with three high profile sites located on Auckland’s Queen Street and Ponsonby Road, and on Wellington’s Oriental Parade. These sites have been selected based on a combination of high pedestrian and vehicle traffic, proximity to key retail, entertainment and recreation districts, transport hubs, restaurants, bars and cafes.”
All Adshel Live Panorama sites feature 75-inch, ultra-high definition screens capable of 4K content which adapt to the ambient light conditions.
With the expansion of the Adshel Live network to 283 screens by October, the Adshel Live network will deliver unrivalled scale with over four million contacts (DTVs) per day.
Just down the road from Adshel's activity, APN Outdoor has announced the first large format digital sign located in Ponsonby Central. The high-resolution 12x3 metre sign, which targets Ponsonby Road pedestrians and traffic, is expected to reach just over two million contacts a month.
APN Outdoor New Zealand country head Mike Watkins says the Ponsonby Central’s conversion is a "prime reflection of [the company's] digitisation strategy which is founded on two principles – location and quality.
"There would be few positions that are better than Ponsonby Central and we are proud to have worked closely with the owner to create this amazing site.”
There are an additional three major sites for APN Outdoor in Parnell Rise, Khyber Pass and Greenlane scheduled for launch from August to October 2018.
Additionally, Halo Media has announced the launch of its latest digital billboard – approximately 9 metres by 4 metres – at Highbrook Business Park in East Tamaki.
In addition, the Highbrook site has a 400-metre lead-in at a traffic-lighted section, says Mark Davey, director at Halo Media.
“Halo’s ethos is that you and your audience should love your advertising. With digital billboards, you can achieve that with the visual power of large-scale cinema advertising out in the real world. Moreover, with the ability to change out your creative with new offers or even respond to time of day or whether your advertising will be more relevant and responsive than ever before.”