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Outdoor Media Company, QMS Media Limited (ASX:QMS) has announced its preliminary financial results for the six months ended 31 December 2018. The company has reported a statutory revenue of $107.6 million for the six months period which is 9% higher than the previous corresponding period (pcp). The company's solid revenue growth mainly reflects the strength of its Australia business and continued strategic digital roll-out.
In the past one year, the gross profit of the company increased by 11% from $48.1 million as on 31 December 2017 to $53.3 million as on 31 December 2018. Further, the company has reported a Gross profit margin of 49.5% compared to 48.6% in pcp. The company has reported Underlying EBITDA margin of 21.1 percent which reflects investment in future sport revenue streams, ahead of earnings. Further, the companyâs EBITDA of $22.7 million is on track to deliver on the companyâs previously announced FY19 guidance of $56m-$58m.
During the six months period, the company secured two major strategic data partnerships with Neuro Insights and DSpark in order to deliver unparalleled insights for advertisers into the power of QMSâ digital assets and the rich audiences they reach.
While commenting on the results, QMS Group Chief Executive Officer, Barclay Nettlefold told that the companyâs solid performance during the six months period reflects its ability to effectively manage changing sector dynamics to drive value and growth and to leverage its competitive advantage.
Mr. Barclay further informed that the company's differentiated market proposition focuses on quality, not volume and reinforces the strength of its strategy while continuing to drive revenue synergies across the Group.
During the six months period, the company made a significant investment in sport, and it continued to make strategic digital development, due to which, the companyâs Net debt has reached to $150.3 million. It is expected that the net debt will be reduced through the sale of non-core land and buildings which will bring in around $9million and the company is also expecting a return of $35 million from the Mediaworks transaction. The net debt / underlying EBITDA ratio is expected to be less than 2.5x by 31 December 2019.
The companyâs board has declared a dividend of 1.0 cent per share (fully franked) for the six-month period ended 31 December 2018, representing a dividend payout ratio of 43% of NPAT. The payout ratio is consistent with the companyâ policy to pay dividends of between 30% and 50% of NPAT.
The companyâs Board is confident that the company will achieve its previous FY 2019 underlying EBITDA guidance of $56 - $58m.
Meanwhile, in the last six months, the share price of the company decreased by 32.37% as on 27 February 2019, and it is trading at a PE Multiple of 12.500x. QMSâs shares are trading at $228.05 million as on 28 February 2019 (AEST 2:57 PM). It has 52 weeks high of $1.180 and 52 weeks low of $0.660.
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