Shares in APN Outdoor soared after the advertising group increased its revenue outlook on the back of growing revenue from digital billboards.
A short time ago, they were up almost 17% to $5.41.
The company, with a network of 84 digital and 1,022 static roadside billboards, says its full year revenue growth guidance will be in the range of 8.5% to 9%, up from 6% to 8%.
And EBITDA (earnings before interest, taxes, depreciation, and amortisation) will be in the range of $84 million to $86 million, up from $79 million to $84 million.
The company bases its estimates on forward bookings, a key indicator of revenue.
APN Outdoor says there’s been a solid recovery in both media revenues and bookings in recent weeks. Bookings suffered in the two months after the federal election.
The company says more than 470,000 cars drive past its digital billboards each day in Sydney.
On average, a digital panel generates 3.5 to 4.5 times the revenue of a static billboard.
The company has this year commissioned 32 new digital screens with a further four planned by the end of the year.
Last month the company announced it is taking full ownership of Adshel, with its network of digital street advertising screens, for $268.4 million.
Adshel has the number one position in street furniture advertising space in Australia and New Zealand with 22,000 static and digital panels.