Outdoor advertiser APN Outdoor boosted first half 2017 revenue by 8% to $162.3 million, despite taking a loss of $3.38 million on its $1.6 billion failed merger attempt with oOh!Media.
Earnings before tax were up 7% to $37.2 million.
The biggest revenue growth area was the billboard category, up 20% to $84.6m. Digital screens contributed more than one-third of revenues, while ‘classic’ billboards performed better than expected.
“The first half of this year saw the company continue to grow revenue through the combination of additional digital screens and overall market growth,” Richard Herring, the retiring CEO of APN Outdoor, told the ASX.
“With 16 new screens added to APN Outdoor’s portfolio over the first half, the company now has 103 Elite Screens across Australia and New Zealand. Digital screen revenues continue to represent over one-third of Group revenues, and will continue to grow in line with demand and the company’s focused growth strategy.
“Notwithstanding the increase in digital screens and associated revenue, classic billboard revenue was resilient and performed better than expected in the first half.”
Herring said that so far this year the company had successfully renewed three key contracts: the Tullamarine Freeway, the Sydney State Transit contract for Sydney Buses and the Adelaide Metro contract.
The proposed merger with oOh!Media was cancelled after the ACCC expressed concerns over the lack of competition.