Leading outdoor advertising companies oOh! Media and APN Outdoor have posted strong results as digital billboards continue to drive the thriving outdoor market.
APN Outdoor exceeded prospectus expectations by reporting a profit of $41 million for 2015, with revenue jumping 20 per cent to $300.8 million, while oOh! Media delivered $18.4 million in full year profit with revenue up 7.1 per cent to $280 million. Both companies listed on the ASX in late 2014.
"Outdoor advertising momentum from 2015 has continued into the early months of 2016," APN said in a statement. "Demand from advertisers and agencies for our large format digital screens remains strong and as a result, we are planning to accelerate our rollout programme in 2016 to over 20 new digital Elite Screens."
APN, which owns billboards at airports and train stations, and on buses and trams, said it increased market share in both Australia and New Zealand during 2015, aided by acquisitions, new products, operational improvements and contract wins. Audience numbers for outdoor advertising had risen in both countries, it said, due to population growth, increased travel habits and expanded urban areas.
oOh! Media installed 900 new digital retail panels and 17 digital roadside billboards across Australia and New Zealand in 2015, and predicted that digital would generate half of its total revenue in three years.
"Digital's added another bow to our string, it's added another capability to engage an audience and to have advertisers look at different creative ways they can use the medium," CEO Brendon Cook told AAP. "We are not simply riding the wave of the industry performance; we are actively driving change within the out-of-home industry."