Outdoor and digital advertiser oOh!media has cut its interim dividend by 22 per cent after increased employee costs capped the rise in first-half net profit to just 1.6 per cent.
The group will pay a dividend of 3.5 cents a share, down from 4.5 cents a year earlier. It booked net profit of $9.3 million for the six months ended June 30, while revenue rose 11 per cent to $192 million.
Operating expenditure jumped 20 per cent to $49.7 million in the first-half ended June 30 from $41.3 million a year earlier.
The number reflected increased employee expenses associated with technology, creative and sales teams and related commissions to drive revenue growth, the company said.
oOh!media as announced in June it is buying Here, There & Everywhere's Adshel advertising business for $570 million to beef up its operations, beating rival suitor APN Outdoor.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
First-half underlying earnings were up 11.5 per cent to $37.9 million, with oO!media forecasting underlying earnings of $94 million to $99 million for 2018, compared to $90.1 million last year.
The group has also forecast capital expenditure of between $30 to $40 million in 2018.
oOh!media said the 2018 guidance excludes the impact of the proposed acquisition of Adshel, including costs incurred to-date.
The acquisition, which needs approval from the competition regulator, is expected to be wrapped up later this year.
oOh!media shares were down 5 cents, or 1 per cent, to $4.75 in a broadly flat Australian share market at 1543 AEST.
OOH!MEDIA'S HALF YEAR NET PROFIT STEADY
*Net profit up 1.6pct to 9.3m
*Revenue up 11pct to $192m
*Interim dividend down 22pct to 3.5 cents a share, fully franked
