4th May 2021 13:51
(Alliance News) - Ocean Outdoor Ltd on Tuesday said its loss widened significantly in 2020 as out-of-home advertising suffered from lockdowns keeping people in-the-home.
The London-based operator of digital advertising reported a pretax loss of GBP184.3 million for 2020, substantially greater than the GBP6.2 million seen the prior year.
Revenue dropped by 17% year-on-year to GBP86.2 million from GBP104.0 million, but the loss was mainly the result of a GBP142 million impairment charge, compared to none the year before. The impairment was of intangibles and investments in associates.
However Ocean Outdoor said the outlook for 2021 is beginning to improve, with weekly bookings up and the feeling that "momentum is building" following the vaccine rollout.
The firm highlighted its strong cash position of GBP30.0 million at year end, which is hoped will allow it to "bounce back quickly as people return" to city centres and brands recommence out-of-home advertising campaigns. A new partnership with BT Sport has also been secured, allowing it to show UEFA's Champions League match clips for shoppers in seven UK cities.
"Throughout the period Ocean Outdoor has continued to invest in its platforms and products to prepare for the impending recovery", said Chief Executive Tim Bleakley.
"With a strong balance sheet and growth opportunities in every area of our operations, our focus is now on the speed of that recovery as restrictions are lifted.
"We have never stood still. Momentum is building and the investments we have made means Ocean is exceptionally well placed to reach and engage with highly receptive, liberated outdoor audiences at scale. We have a strong underlying business, we are well set for the recovery and we are already engaged in the fight back."
Ocean Outdoor shares were down 0.9% to USD8.00 each in London on Tuesday.
By Will Paige; [email protected]
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