Yesterday oOh! Media Ltd (ASX: OML) reported its full-year results for the year ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding year.
- Revenue of $482.6m, up 27%
- Net profit after tax of $31.6m, down 5%
- Adjusted net profit of $51.1m, up 18%
- Statutory EBTIDA of $101m, up 15%
- Adjusted EBITDA of $112.5m, up 25%
- Final fully franked dividend of 7.5 cents per share, full year dividends of 11 cents per share, down from 15 cents per share
- Drawn debt of $410m,
- Net debt to pro forma / underlying EBITDA ratio of 2.6x
- Guidance for 2019 EBITDA in the range of $152m to $162m
- Forecast for capex of $55m – $70m in 2019
The oOh! Media share price fell 8.6% yesterday and is down another 6.4% today to $3.49 on the back of investor disappointment over rising costs taking a larger-than-expected chunk out of operating profit.
The digital advertising group also carries a swag of debt that is likely to put some investors off, although it's forecasting some strong EBITDA growth over calendar 2019 which potentially makes the stock attractive if it delivers on its guidance. However, I'm not a buyer of oOh!Media shares.
