ASX-listed outdoor advertiser QMS Media has completed its majority buyout of global sports media businesses TGI US, TGI Europe and Stellavista and gained access to their signage portfolios that include 1,750 international sporting events and leading sports associations.
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| QMS NRL stadium signage |
“I can confirm that we have now taken management control of these acquisitions,” QMS chairman Wayne Stevenson told Friday’s annual general meeting. “I am pleased to welcome you all here…to report on another exciting year for QMS, against a backdrop of market disruption and consolidation.”
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'Another exciting year': |
QMS Media FY18 revenue was up 21% to $204.2 million; net profit after tax rose 10% to $18.4 million.
“To date, our strategy has been largely centred around Digital Outdoor – more specifically roadside locations; and our significant growth in this area has vindicated this strategy,” Stevenson said.
“Now, the opportunity exists for us to amplify our approach, by realising the untapped potential of Digital Sport as we expand our footprint across digital sports media and technology globally. The knowledge, strategic direction, technology and data ability we have already developed across our business in Australia and New Zealand is now being deployed across this new horizon.
“While our leverage ratio increased during the year, this was driven by the higher levels of investment in premium quality digital billboards and the funding arrangements for our recently announced sports acquisitions - TGI US and TGI Europe. These acquisitions will provide access to over 1,750 events globally and to some of the most exclusive and well known sporting associations, clubs and codes…under one unified and powerful technology, infrastructure and digital media platform.”
TGI Europe’s stadium portfolio features leading football clubs including Manchester United, Liverpool FC, Juventus and Real Madrid. Stellavista provides LED perimeter signage at stadiums that host the ICC Cricket World Twenty20, the Rugby League World Cup, Rugby Union Six Nations and cricket internationals in South Africa, England, India and the West Indies.
The deal follows a recent shakeup in the local out-of-home market, with French giant JCDecaux buying APN Outdoor as market leader oOh!media acquired street furniture business Adshel from Here, There & Everywhere (HT&E).
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| Stellavista signage at an ICC World Twenty20 cricket match |
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'Fantastic year': Barclay Nettlefold
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QMS CEO Barclay Nettlefold told the AGM that 2018 had been “a fantastic year” for QMS Media.
“We are pleased to report that during the 2018 financial year we switched on a further 37 landmark digital billboards across Australia and New Zealand. Our development pipeline is strong, enabling us to continue this momentum in FY19 with more than 135 sites planned to be live by June 30 next year.
"During the 2018 financial year, we have been successful in securing a number of new contracts and renewals. Most importantly, we successfully grew our media rights across QMS Sport, to give us access to 812 individual sporting and event content plays, up from 588 in H1, as well as significant virtual opportunities across a range of sports. QMS Sport is now the largest single on-field media rights holder in Australasia.
"We have extended our provision of infrastructure and content through our majority interest in key internationally recognised sports media companies, TGI US, TGI Europe and Stellavista.
"We are well placed to deliver long-term sustainable revenue and earnings growth. In the context of the above, we confirm FY19 EBITDA guidance of $56 million to $58 million, including the impact of the international sport acquisition."
Nettlefold also announced that QMS Media has signed a data partnership with DSpark, a leading provider of mobility intelligence data in Australia and Singapore, using mobile network data.
