APN Outdoor: A strong year of revenue growth ahead

APN Outdoor: A strong year of revenue growth ahead. APN Outdoor (APO) reported a result that was 5% ahead of prospectus forecasts. Outdoor advertising has been the best performing traditional media class in the last ten years, growing at a 6% cagr. This growth rate accelerated to +10% in CY14 versus a broader ad market that was flat. APO is also in the process of digitising their panels and now has 34 large format digital screens in place. Digital billboards offer dynamic pricing and higher utilization delivering around 4x the revenues of static panels. The company sees the potential to digitise up to 200 large format panels over time and will convert a further 17 new screens in CY15. New digitised trackside (rail) panels have also outperformed expectations. With 27% share in the outdoor ad market and the revenue uplift from digital rollout APO will see a strong year of earnings growth in CY15.