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TGI acquisition drives 65% jump in half-year profit for QMS

Outdoor advertiser QMS Media delivered “a strong operational and financial performance” in the first half of 2019, with revenue up 23% to $128 million on the same period last year and net profit after tax up 65% to $16.5 million. 

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     QMS CEO Barclay Nettlefold

“Our operational and financial results for the first half of 2019 are extremely pleasing, in a challenging media landscape,” QMS Group CEO Barclay Nettlefold told the ASX. “Our unique diversification strategy, by both category and geography, provides us with a clear point of differentiation from our competitors."

In November 2018, QMS completed a majority buyout of global sports media businesses TGI US and TGI Europe, gaining access to signage portfolios that include hundreds of international sporting events.

QMS Sport revenue for the first half jumped by 119% to $39.7m, with EBITDA up 251% to $11.4m.

The company now has 116 landmark digital billboards throughout Australia, with nine new billboards switched on during the period. Digital billboards contributed 81% of Australian media revenue but was offset by weaker static and print production revenues. 

“Our singular focus on quality digital assets and a market first approach to audience data and insights, delivers value for advertisers and this is reflected in our Australian and New Zealand results," Nettlefold said. "QMS Australia continues to grow media revenue ahead of the market and we have positive momentum heading into the second half of the year with Q3 CY19 media revenue for QMS Australia expected to be 15-20% up on the same time last year.

“The year to date results in QMS Sport have been extremely encouraging with the growth in revenue and underlying EBITDA in the half reflecting our previous investments in sports technology and rights, and the initial contribution from TGI following the completion of that acquisition during the half year.”

Earlier this month, QMS Sports signed a $32.7 million agreement to buy two leading sports talent agents and marketing groups, TLA and Stride Sports Management. 

 “The diversification of QMS Sport as a global integrated sports platform represents a significant growth opportunity for the Company,” said Nettlefold. “The TGI acquisition plus the recently announced acquisitions of TLA and Stride create a unified and powerful technology, infrastructure and digital media platform with extensive relationships across top tier international sporting organisations, clubs and brands.”