Digital billboard firm Ocean Outdoor (OOUT) has made a second foray into Scandanavia with the proposed acquisition of its Swedish peer AdCityMedia for a little under £25m. This follows on from the recent purchase of another Sweden-based firm, Visual Art, two months ago.
The stock is unchanged at $7.60 on the news. The share price has slipped back in recent weeks, perhaps reflecting a more uncertain environment for the advertising market in general. We take a detailed look at the business model and strategy behind the group in this article.
According to Megabuyte this latest transaction will add £15m of revenue on top of the £92.7m guided for 2019 and, as the tech consultancy observes, ‘adds to the Nordic presence established through the Visual Art acquisition in September’.
AdCityMedia will provide the company with its first footprint in the Norwegian market assuming the deal completes around the end of the year as planned. Today’s news follows on from recent third quarter results.
These were solid, although pro forma revenue growth, encompassing Visual Art as if it had been owned for the whole period, slowed from 16% in the first half to 12%. The period benefited from the company’s exclusive partnership with ITV (ITV) to broadcast live content and highlights packages from the Rugby World Cup on its screens.