Outdoor advertising business QMS has unveiled strong earnings growth in it half year financial results, with revenue up 50% to $44.4 million, driven by a push in digital out of home.
The company, which listed on the ASX in June last year, announced earnings before interest, taxes, deprecation and amortisation (EBITDA) of $9.9m, up from a pro forma result of $1.7m. Statutory net profit after tax reached $5.7m.
Digital was a strong push in the results, representing 51% of Australian media revenue and 39% of total media revenue.
QMS CEO and MD Barclay Nettlefold says the strong result shows the momentum in the business and the uplift stemming from its digital roll-out.
“Last year the Australian and New Zealand outdoor advertising markets grew 17% and 12% respectively, driven by the growing demand for digital outdoor from advertisers who recognise the superior flexibility and engagement offered by the medium,” Nettlefold says.
“We are on track to more than double the number of landmark digital billboard this financial year with 48 billboards to be operational across Australia and New Zealand by 30 June 2016.
“Digital now contributes almost 40% of total media revenue, and we expect this to continue to grow as we expand our platform on both sides of the Tasman and Indonesia.
QMS's Australian digital roll-out exceeded its FY16 target, with 29 digital billboards rolled out at 31 December.
The announcement follows a spate of other strong financial results in the out of home (OOH) sector including Ooh!Media which saw a 47.6% jump in digital revenue in its full year results and APN Outdoor which had revenue growth of 20% to $300.8 million in its first full year as a publicly listed company. APN News and Media's outdoor arm, Adshel, also saw a healthy result with revenue boosting by 7% over the full year to $159.5m.
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