QMS Media announces strong first half result for FY 2018 led by continued digital expansion

QMS Media Limited has announced its financial results for the six months to 31 December 2017 (H1 FY18). Revenue was up 25% to $99.0 million, with Digital revenue representing 66% of total Group media revenue. Underlying earnings (EBITDA) was up 27% to $22.7 million, with profit (NPAT) up 11% to $8.3 million.

The company said its strong momentum in digital roll-out continued, with 99 landmark digital billboards operational at 31 December 2017 (including the new Leeder site in Perth) and the full-year target upgraded to 112+. 

Other operational highlights included successful integration of Canberra Airport and delivery of small format digital across Gold Coast street furniture and Auckland Transport network; and continued expansion of QMS Sport portfolio, including Football Federation Australia (FFA), National Rugby League (NRL) and virtual opportunities.

Ongoing investment in digital and data capabilities saw QMS’s DataLab driving improved audience understanding and targeting; Enhanced digital capability with investment in NZ digital agency, Digital Commons; and an industry-first Digital Transaction Platform (DTP) launched in NZ.

 “This is a pleasing result, which has been driven by our continued focus on premium quality landmark digital expansion in strategic markets,” said QMS Group Chief Executive Officer Barclay Nettlefold.

“Our landmark digital development roll-out has strong momentum, with 24 new billboards switched on during the half.  As a result, we have updated our full year development target to over 112 sites to be operational by the end of June 2018. Our smaller format digital presence is an important complement to our landmark network, and we are continuing to invest in strategic expansion to support integrated campaigns across multiple formats.

“Out-of-Home industry growth was strong in the first half, with Roadside Billboards – the core of QMS’ portfolio, outperforming the market. We continue to see an attractive opportunity in Sport and are making good progress towards our goal of becoming the largest sports media rights holder in the market, with recent contract wins and renewals in FFA and NRL, and deepening audience engagement opportunities using virtual innovation. We are always looking at new ideas and technology globally, to bring the power of Sport to an expanded audience and will continue to assess further opportunities for growth in this key sector.

“Developing our digital and data capabilities remains an ongoing area of focus. Our DataLab is enabling us to better understand our audiences, and deliver more targeted and valuable campaigns for advertisers, and our investment in Digital Commons provides the capability to expand online and mobile media audience buying into outdoor media.

“We have also launched an industry-first Digital Transaction Platform in New Zealand during the half, which provides a significant opportunity for digital outdoor to be considered with, and compete for, online media investment.

“Looking ahead, we continue to see significant opportunity to unlock additional value from our portfolio through harnessing the power of digital advertising across multiple platforms.”