1st Nov 2018 13:31
LONDON (Alliance News) - Ocean Outdoor Ltd said Thursday that revenue grew in the third quarter on "solid" trading in line with expectations.
The outdoor advertising company said its revenue in the third quarter increased 19% to GBP15.6 million from GBP131.1 million the year before.
The company's adjusted earnings before interest, tax, depreciation and amortisation in the quarter increased 11% year-on-year to GBP5.1 million from GBP4.6 million.
"The group has had a solid year to date with trading in line with our expectations," said Tim Bleakley, chief executive officer.
"Strong growth was achieved in the third quarter, as illustrated by the increase in both the pro forma revenue and adjusted Ebitda. Whilst the group is progressing well organically, we continue to examine growth in non-organic opportunities at a price level that would deliver value to our shareholders."
Ocean Outdoor said the revenue growth was driven by a shift in advertising spend as advertisers returned to out-of-home media following the end of the football World Cup in the second quarter.
The advertising company - which operates the Piccadilly Circus display and the outside of the IMAX theatre near Waterloo Station in London - said its Forrest division had its largest billings month ever.
The division's adjusted Ebitda was down 1% in the quarter, however, as the higher revenue was offset by the increase of rent on long-term leases and increased branding costs.
Ocean reiterated its full-year guidance, it expects to achieve high single-digit revenue growth.
The company formed in March after advertising company Ocelot Partners Ltd completed the acquisition of Ocean for GBP200 million. Following the transaction Ocelot changed its name to Ocean.
In the first six months of 2018, Ocean posted a GBP8.2 million profit on a maiden revenue of GBP13.1 million.
Shares in Ocean Outdoor are suspended in London but last closed at USD9.57 each.
The company said it expects to be readmitted to trading before the end of the year.
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