oOh!media talks FY 2015 Results

Interviews

Transcription of Finance News Network Interview with oOh!Media Group Limited (ASX:OML) CEO, Brendon Cook
 
 
Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from oOh!Media Group Limited (ASX:OML) to discuss the company’s results is CEO, Brendon Cook. Brendon, welcome back.
 
Brendon Cook: Thank you Carolyn.
 
Carolyn Herbert: You’ve just reported your results for the year ended 31 December 2015. What were the highlights?
 
Brendon Cook: Revenue finished at just a touch under $280 million, which is five per cent above Prospectus. Our EBITDA improved to $57.7 million, which is significantly above Prospectus. And our NPAT adjusted on a pro forma basis, was 28.5 per cent above the Prospectus, at $28.5 million.
 
Carolyn Herbert: What was the dividend for the half and the full year?
 
Brendon Cook:The half-year was 6.7 cents and for the full year at 9.5 cents, and that’s fully franked.
 
Carolyn Herbert: Now to the oOh!Media network. Can you tell us about your digital strategy, its footprint and the contribution to your results?
 
Brendon Cook: One of the great strengths we’ve had, is we’ve looked at audiences and out-of-home is all about audiences and environments. So we have the biggest environments, we have everything in road viewing environments, walk by environments and standby environments. That includes shopping centres, airports, big billboards on the sides of roads, universities, gyms and office towers, to name but a few. And the consequence of that is it allows us to become highly digitised. And that will enable us to really reach out, as technology and data changes, to really reach out to advertisers and deliver for them, audiences in ways they’ve never been delivered in, out-of-home before.
 
Carolyn Herbert: How many new advertising contracts have you added, and where are you growing the most?
 
Brendon Cook: We’ve added about 390 new clients to the medium this year. And that’s a symptom of the growth of the importance of the medium, in this disrupted audience environment that we now live in. So we’ll continue to look at that. On top of that, we’re continually looking at our concession and contract basis, with our property owners. We extended over 400 contracts this year. Around about 145 new contracts in tenders, including major contracts like the Roads & Maritime Services, for big billboards across roads and on bridges in Sydney. As well as major shopping centre groups like Vicinity and QIC.
 
Carolyn Herbert: How’s the out-of-home advertising market performing, and what’s your outlook for 2016?
 
Brendon Cook: Obviously the market is benefiting from the disruption in audiences, and the addition of all the technology that we can now apply to the signs. So last year was obviously double-digit, high double-digit growth. We’re suspecting that this year will be high single-digit growth, or low double-digit growth, over the full year. The first few months, the industry reported double-digit growth, which is strong. And we see the tail winds of disruption in other media, benefiting out-of-home significantly again, in 2016.
 
Carolyn Herbert: Can you tell us about your growth strategy and how this will be funded?
 
Brendon Cook: We’re very fortunate that we made acquisitions throughout the year,businesses like Inlink in the office media area. And what we’ve used to grow the business is a very strong facility. Fortunately the banks have also replenished that and given us back, the $50 million that we’ve used. And so we have over $190 million worth of facilities, which allows us to fund our growth CAPEX expenditure, which this year will be somewhere between $20 million and $25 million. As well as leave plenty of room, should acquisitions arise that we think are worthwhile.
 
Carolyn Herbert: Finally Brendon, what’s your guidance for 2016?
 
Brendon Cook: We’re a calendar year business. So our guidance for 2016 is 17 to 25 per cent EBITDA growth, which takes us between $68 million and $72 million,of which we’ll spend around $20 million to $25 million CAPEX.
 
Carolyn Herbert: Brendon Cook, thank you for the update.
 
Brendon Cook: Thanks Carolyn.
 
 
Ends

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