Ocean Outdoor records 196 per cent revenue lift as cities reopen
Billboard operator Ocean Outdoor reported a revenue jump of 196 per cent after brands leapt at the opportunity to advertise across towns and cities after lockdown.
Revenue for the second quarter increased to £25.9m, a huge rise on 2020’s sum of £8.8m.
First-half revenue increased 11.2 per cent to £40.6m, up from £36.5m last year, with the country still impacted by pandemic restrictions in the period.
Billings for the first-half increased 9.1 per cent to £48.4m while the company said it was “at the beginning of a resurgence of activity” in the sector.
Cash reserves in the same period were down £5.8m to cover costs from £35.6m in 2020 to £29.8m in 2021.
CEO of Ocean Outdoor, Tim Bleakley, said there had been “increased levels of client activity” as the out-of-home advertising sector started its Covid recovery.
“The strong sequential demand has tracked the vaccine rollout and phased lifting of restrictions, as well as the renewed confidence from high-spending advertising categories. The major global brands are returning at pace to digital out of home, underlining the increasing importance they are placing on the channel,” Bleakley said.
The Piccadilly Lights operator reported a pre-tax loss of £182m last year, compared to a loss of £6.2m in 2019.
The sector would be a “structural long-term winner” after the pandemic, being well positioned to benefit from the return to city centres and event hubs, Bleakley added.
“We believe we are at the beginning of a resurgence of activity in our sector validated by independent industry data, and are therefore confident in the period ahead.”
The firm secured a long-term contract worth £30m to operate digital screens and billboards for Canary Wharf Group earlier this year.