TIDMOOUT
RNS Number : 7892B
Ocean Outdoor Limited
16 February 2022
16 February 2022
Ocean Outdoor Limited
("Ocean" or the "Company" or the "Group")
Full Year 2021 Trading Update
FY21 performance ahead of previous guidance and business well
positioned for the continued recovery; progress with the strategic
review
London, UK: Ocean Outdoor, a leading operator of premium digital
out of home (DOOH(R)) advertising in the UK, the Netherlands, the
Nordics and Germany, today provides the market with a trading
update for the full year 2021.
Highlights:
2021 2020 FY21 on FY20
Unaudited Group Revenue GBP124.4m GBP86.2m 44.3%
Unaudited adjusted EBITDA GBP18.6m GBP(0.4)m n.m
-- Appointed outdoor media partner for Edinburgh's prestigious
St James Quarter GBP1 billion regeneration project
-- Appointed strategic media partner by Unibail Rodamco
Westfield for the Fisketorvet, Copenhagen shopping mall
-- Appointed exclusive outdoor media partner for the Canary
Wharf Group, with long-term contract value of GBP30 million
-- Launched 3D product DeepScreen(R) with successful roll out
across the Group's large format full motion portfolio in all
territories
Ocean experienced a strong bounce back in demand during 2021,
which led to a 44.3% increase in Group revenue to GBP124.4m, and a
significant increase in EBITDA to GBP18.6m. The year of recovery
for the DOOH(R) sector began during Q2, with client activity and
strong sequential demand tracking the vaccine rollout and phased
lifting of restrictions. Importantly, Ocean also experienced a
renewed confidence among the high-spending advertising categories,
with the 'power brands' committing a greater proportion of their
budgets to DOOH(R) as well as an increasing number of new adopters,
reflecting the long term structural tailwind within the sector.
With nearly all of Ocean's portfolio of digital screens situated
across prime retail and urban roadside locations, the Group has
been able to fully capitalise on the recovery. Footfall across
prime retail destinations, such as Westfield shopping malls and
major city centres, has come back strongly whilst roadside traffic
across most of our territories was back to pre-pandemic levels by
the year end.
In terms of recovery trends across our territories since the
half year, bookings and demand in the Netherlands and Nordics have
continued to improve. All territories recorded a strong Q4, the
Group's key trading period, with revenues up by 67.5% compared to
Q4 2020 and 7.2% compared to Q4 2019, illustrating the strength of
the ongoing recovery.
As well as the return of established users of DOOH(R), Ocean has
seen an increasing number of new adopters, driven by changing
consumer behaviour as well as our new product, Deepscreen(R),
Ocean's 3D screen development. Since launching in the summer on the
Piccadilly Lights, Deepscreen(R) has been rolled out across Ocean's
large format full motion screens across all our territories to huge
effect.
In terms of organic growth, the Group signed a series of new
contracts across all territories during 2021. Some of the most
high-profile included being appointed outdoor media partner for the
St James Quarter in Edinburgh, a 10-year DOOH(R) contract with a
lifetime value of GBP25 million; becoming the exclusive outdoor
media partner for the Canary Wharf Group, with long-term contract
value of GBP30 million , and being appointed strategic media
partner for Fisketorvet, Copenhagen's premium shopping, dining and
leisure destination, which carries a lifetime value of GBP7
million.
Strategic review
On 15 November 2021, Ocean announced that it had initiated a
strategic review to evaluate potential strategic and financial
alternatives to maximise shareholder value. This decision was taken
after the Board and management felt that Ocean was undervalued,
with the share price continuing to face technical trading
challenges unrelated to Ocean's strong business fundamentals and
intrinsic value. The Board is continuing to evaluate a number of
options, including a potential sale, following interest and
conditional offers received which may or may not lead to a
transaction. Another update will be made when appropriate.
Commenting on Ocean's performance, CEO Tim Bleakley said : "The
medium went from strength to strength during 2021 as Covid
restrictions were lifted and vaccination programmes rolled out. As
populations were liberated the advertisers targeted out of home,
with audiences coming back fast and strong in the environments
where Ocean is focussed.
"Ocean was at the forefront of driving the recovery, with DOOH
playing the most significant role by providing a high impact and
dynamic means to target highly valuable audiences efficiently and
cost effectively. We have helped to deliver memorable, engaging
campaigns that transcend the physical display, with images captured
and shared across multiple online news and mobile platforms, on
both a national and global scale. The pandemic has seen the medium
underpin its value as a vital amplifier of other media platforms
that either cannot reach younger demographics as effectively or
deliver the broadcast brand fame the DOOH medium is so strong
for.
"Ocean has also combined the fast audience recovery environments
of prime retail and urban roadside locations with unique
innovations, such as our immersive 3D Deepscreen proposition, which
has been launched across multiple countries. All this though has
been underpinned by the incredible efforts of Ocean's people, who
have been amongst some of the most passionate and committed work
forces in any sector to return to working out of home."
Outlook and current trading
Despite commencing the year with Omicron and restrictions to
leisure and hospitality across some of our countries, trading has
started very strongly. We currently expect revenue and adjusted
EBITDA for FY2022 to be ahead of FY2019 reflecting the return of
audiences and brands to OOH environments.
ENDS
For further information please contact:
Ocean Outdoor 020 7292 6161
Tim Bleakley, CEO
Susann Jerry, Head of Communications
Yellow Jersey PR 07747 788 221
Charles Goodwin, Annabel Atkins
oceanoutdoor@yellowjerseypr.com
About Ocean Outdoor
Ocean Outdoor is a leading operator of digital out-of-home
(DOOH(R)) advertising across the UK, Northern and Continental
Europe. The Group's network of 4,000+ screens covers seven
countries and 351 cities with its technological capabilities
delivering the most impactful and measurable DOOH(R) brand and
advertising experiences.
Ocean's portfolio comprises of some of the most iconic
locations, such as the Piccadilly Lights and the BFI IMAX, whilst
it also works closely with high-profile landlords, including
Landsec, Unibail-Rodamco-Westfield (URW), the BFI, Nuveen and the
Canary Wharf Group, as well as major city councils on the
development of its network.
To date the Group's growth has been driven by tender wins and
the rollout of new locations, as well acquisitions that complement
the existing portfolio. Since 2018, Ocean has completed seven
acquisitions, which have enabled it to expand its UK footprint and
move into the Netherlands, the Nordics and Germany.
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END
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February 16, 2022 02:00 ET (07:00 GMT)
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