APNO delivers strong H1 2015 result

24/08/2015

APN Outdoor Group Limited (ASX: APO) today reported its financial results for the 6 months to June 2015.

Financial highlights included:

  • Revenue up 25% on last year to $136.3m

  • Pro forma EBITDA up 110% on last year to $26.6m

  • Pro forma NPATA up 188% on last year to $14.0m

  • Statutory NPAT of $12.9m

  • Interim dividend of 4.5 cents per share (fully franked)

Operational highlights include:

  • Market share growth in Australia and New Zealand

  • 12 Elite Screen approvals into 2015

  • Sydney Airport and WA Buses contract renewals

  • XtrackTV expanded into Brisbane

  • NZ strategic acquisition completed – Roadside Attractions

Richard Herring, APN Outdoor’s CEO said “The H1 performance is very encouraging and is the result of our team’s successful execution of our growth strategy. We remain confident that our current initiatives, including large format digital screen development, will enable continued leadership in the Outdoor industry in Australia and New Zealand.”

APN Outdoor Group Limited reported first half NPATA of $14.0m. This compares to $4.9m in the previous corresponding half year. Revenue across Australia and New Zealand was up 25% and EBITDA grew 110% on the prior half-year. 

Mr Herring also added that “the Outdoor industry’s attractiveness to advertisers continues to strengthen with increasing audience potentials due to population growth and a rise in daily journeys. Against a backdrop of some other media’s audience declines, Outdoor’s relevance to advertisers is increasingly being recognised. It has been further boosted by recent investments in technologies and products that broaden the scope of the medium’s use.”

Elite Screen execution has focused on screen quality and site location to ensure best in class reputation in market is maintained. The business remains on track to deliver a target of 17 new Elite Screen in 2015 with 12 screens approved to date. 

XtrackTV on the Eastern Seaboard was received with great enthusiasm by advertisers and will be further enhanced by the addition of the Adelaide market later in the year.
Also of note has been the extension of the WA bus advertising contract, whilst the acquisition of Roadside Attractions has resulted in APN Outdoor securing 113 key roadside billboard sites in New Zealand, which are complementary to the existing portfolio, as well as providing an opportunity for ongoing digitisation.

Overall the past 6 months has been a successful period for APN Outdoor, as the company continues to demonstrate superior financial management, leadership in asset development and proving the power of the medium to advertisers. We remain confident and focused on executing our growth agenda into the future.

Outlook


The Outdoor advertising market continues to benefit from share gains from other traditional media. These structural changes are being driven by the fragmentation of audiences of other media, together with the unique advertising opportunity created by digital outdoor screens. 

In the second half of 2014, the Outdoor advertising market in Australia grew by 14%. These strong prior period results need to be considered in the context of expectations for H2 2015. Whilst forward bookings for H2 are ahead of the same time last year, there still remains around 50% of revenue to be written to
achieve the revised forecast.

As a result of the strong performance from H1 and our current view of H2 market conditions, APO has revised its pro forma EBITDA forecast for the year ending 31 December 2015 to an increase of mid-teens percent above the Prospectus forecast of $53.7m.

The board has confirmed its intention to pay a full year dividend for the year ending 31 December 2015 reflecting a payout ratio in the order of 60% of pro forma NPATA.

 

 

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