16th Sep 2019 09:42
(Alliance News) - Ocean Outdoor Ltd said Monday its loss for the first half of 2019 narrowed as revenue grew both organically and through acquisitions.
In a separate announcement, the digital advertiser said it has acquired Sweden-based digital out-of-home media group Visual Art.
Ocean Outdoor will acquire the out-of-home assets of Visual Art for EUR63 million in cash, and then partner with Visual Art operators to form a 50-50 digital signage technology joint venture, into which Ocean will invest EUR15 million.
The joint venture will be called Visual Art Technologies, which will design, install and broadcast digital signs.
The acquisition of Visual Art will extend Ocean's presence into northern Europe, including Sweden, Denmark, Finland, and Germany.
"Visual Art Media is an attractive business that we have long admired. The company combines great people with great assets in growing DOOH markets, offering impressive opportunities across a number of different business areas and multiple countries," said Chief Executive Tim Bleakley.
For the six months to the end of June, Ocean Outdoor's pretax loss narrowed to GBP4.0 million from GBP4.8 million the year before, on revenue that grew by 16% to GBP41.8 million from GBP36.0 million.
Adjusted earnings before interest, taxes, depreciation and amortisation rose by 22% to GBP11.0 million from GBP9.0 million.
Operationally, billings rose by 17% to 55.4 million from 47.4 million the prior year, with digital billings making up 85% of the total figure, compared to 82% the year before.
During the period, Ocean Outdoor acquired two Dutch digital out-of-home companies, Interbest BV and Ngage Media BV for EUR51 million, adding new screen locations to Ocean's portfolio and providing new opportunities in the Netherlands.
Looking ahead, Ocean Outdoor expects revenue growth for 2019 to be in the high single digits.
"It has been an excellent first half with the group delivering good levels of organic growth. We are particularly pleased with the early progress and contribution of Interbest, Ngage Media and Beyond Outdoor, which have given us a significant share of the Dutch market. The acquisitions are performing well and we have realised a number of synergies," Bleakley said.
Shares in Ocean Outdoor were untraded on Monday, last quoted at USD7.85 in London.
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