Ocean Outdoor mulls sale as revenue soars
Advertiser Ocean Outdoor saw a strong bounce back in demand last year, following tough conditions during the Covid-19 pandemic.
Revenue jumped 44.3 per cent to £124.4m in the 2021 financial year, while EBITDA swung from a loss of £0.4m in 2020 to £18.6m. After a strong year for Ocean Outdoor, which operates outdoor advertising in the UK, Netherlands, the Nordics and Germany, the company’s board has decided its £502m valuation is too low and are mulling a sale to maximise shareholder value.
“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,” said chief executive Tim Bleakley.
“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,” Bleakley continued.
Ocean Outdoor confirmed that it has already generated interest and conditional offers for the business and said another update will be made in due course.
This year, the group signed a string of high-profile contracts including being appointed as the outdoor media partner for the St James Quarter in Edinburgh, a 10-year contract worth £25m and becoming the exclusive outdoor media partner for the Canary Wharf Group through a £30m contract.
The company expects revenue for the 2022 financial year to be ahead of pre-pandemic levels in 2019.
Read more: Ocean Outdoor records 196 per cent revenue lift as cities reopen