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Ocean Outdoor Ltd (OOUT)

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Thursday 01 November, 2018

Ocean Outdoor Ltd

Third Quarter Trading Update

RNS Number : 9461F
Ocean Outdoor Limited
01 November 2018
 

1 November 2018

Ocean's Q3 Revenue up 20% and EBITDA up 12%;

Full Year Guidance Confirmed, including Forrest

 

Third Quarter Trading Update

 

("Ocean", "Ocean Outdoor" or the "Company" and, together with its subsidiaries, the "Group")

 

Highlights3

 

•       Revenue grew 20% in Q3 2018 vs Q3 2017 on a pro forma1 basis, driven by a shift of advertising spend from H1 as advertisers returned to out of home media, re-phasing their budgets after a focus on other media formats during the football World Cup in Q2 2018

 

•       Adjusted EBITDA2 grew 12% in Q3 2018 vs Q3 2017 on a pro forma1 basis, as a result of higher revenue, offset by investments in the business for future growth

 

•       Ocean, excluding Forrest, grew revenue and EBITDA at 21% and 14%, respectively in the period and also recorded the Company's largest ever billings month

       

•       The Forrest turnaround initiative remains on track and has started to deliver good results with revenue growth of 11% in Q3 2018 vs Q3 2017, whilst also undertaking a re-branding exercise under the Ocean UK national portfolio using the brand Ocean Scotland

 

•       Forrest has reached its largest billings month ever in the quarter although Forrest EBITDA declined 1% in the period as a result of increased branding costs and the step-up of rent to new long-term rates, offset by the revenue increase

 

•       Ocean's inventory pipeline is continuing to evolve, with new sites set to be launched towards the end of the year, helping to drive further potential growth in revenue and EBITDA. The Group continues to enhance its portfolio with a focus on audience engaging networks and products more relevant for customers and brands.

 

•       The quarter was the first period where all of the new Westfield Phase 2 and existing Westfield site refurbishments were complete

 

•       Ocean's full year guidance is reiterated, now inclusive of Forrest: the Group expects to achieve high single digit revenue growth for the full year 2018

 

•       We continue to work towards readmission and expect this to be complete before the year end

 

Tim Bleakley, Chief Executive Officer, commented:

 

"The Group has had a solid year to date with trading in line with our expectations. Strong growth was achieved in Q3 2018, as illustrated by the increase in both the pro forma1 revenue and adjusted EBITDA2. 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."

 

 

 

 

Q3 Results3

 

Proforma1

£ million

2018

2017

Variance       £

Variance     %

Revenue

15.6

13.1

 

2.6

 

20 

EBITDA2

5.1

4.6

 

0.5

 

12

 

Ocean only

£ million

2018

2017

Variance       £

Variance     %

Revenue

13.6

11.2

 

2.4

 

21 

EBITDA2

4.5

3.9

 

0.5

 

14

 

Forrest only

£ million

2018

2017

Variance       £

Variance     %

Revenue

2.0

1.8

 

0.2

 

11 

EBITDA2

0.7

0.7

 

0.0

 

(1)

 

 

Year to Date Results3

 

Pro forma1

£ million

2018

2017

Variance       £

Variance     %

Revenue

41.2

38.7

 

2.5

 

6 

EBITDA2

12.7

12.6

 

0.1

 

0

 

Ocean only

£ million

2018

2017

Variance       £

Variance     %

Revenue

36.1

33.4

2.8

8

EBITDA2

11.3

10.6

0.7

6

 

Forrest only

£ million

2018

2017

Variance       £

Variance     %

Revenue

5.1

5.4

(0.3)

(6)

EBITDA2

1.4

2.0

(0.6)

(30)

 

 

 

For further information please contact:

 

Ocean Outdoor                                                                                             020 7292 6161

Susann Jerry, Head of Communications

 

Yellow Jersey PR                                                                                         07825 916 715

Charles Goodwin, Georgia Colkin, Joe Burgess

 

 

Pro forma figures assume all trading entities were part of the group from the start of 2017 in order to present a year on year picture. This allows a year on year comparison without the distortion of acquisition accounting.

 

2 Adjusted EBITDA is the Earnings Before Interest, Tax, Depreciation, Amortisation and adjusted for one off items.

 

3 The financial information contained herein is unaudited

 


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