Outdoor company QMS Media has announced an uptick in revenue of 88% driven by the roll-out of digital billboards.
The company reported revenue of $111.8 million up from pro forma FY15 results of $59.6m. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to $26.8m from $4.7m in the prior corresponding period.
QMS has attributed the boost to its digital roll-out, which has seen digital revenue grow almost four-fold on the FY15 pro forma results. In Australia, its digital now comprises 62% of its Australian media revenue while for the whole group, it is 40%.
CEO and MD Barclay Nettlefold says: “Our strong growth in FY16 reflects the successful delivery of our digital development strategy and our expansion into the New Zealand market.
“Digital contributed 62% of QMS' Australian Media revenue in FY16, which compares to an average 37% of revenues from digital across the broader out of home (OOH) industry.
“Advertisers are seeking more meaningful connections with their audiences as the opportunities created by data and technology continue to disrupt the media landscape. Our premium digital outdoor media portfolio enables us to engage audiences with dynamic and targeted messaging.
“Looking ahead, we are well placed to unlock additional value of leveraging customised content across multiple complementary platforms to bring our advertisers closer to their audiences.”
QMS Media forecast FY17 EBITDA of $35m in its market guidance noting it is seeing strong growth in the OOH market. In the year ahead it has planned a strong pipeline of digital sites, including at least 21 new signs, four of which are already operational.
It follows financial results from other OOH companies including Ooh!Media which saw revenue rise some 18% to $146.6 million in it's half year results.
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