The APN Outdoor Group Ltd (ASX: APO) share price is down 3% to $4.79 today despite the outdoor digital advertising business releasing no news to the market. The company's digital outdoor advertising boards are commonly seen at rail, airport, public transit, and roadside locations across Australia's major urban centres.
The stock's 52-week low this year is $4.35 and it has fallen nearly 20% since revealing in March that its proposed merger with oOH!Media Limited (ASX: OOH) would not proceed due to the ACCC ruling that it could be anti-competitive.
The company reports on a calendar year basis and for the year ending December 31 2016, APN Outdoor delivered a profit of $48.4 million on revenues of $330.9 million, which were up 18% and 10% respectively over the prior year.
The migration of outdoor advertising money to digital billboards is a strong tailwind for the group with the company forecasting that revenue and EBITDA for calendar 2017 will be above 2016's result. The company also has a seasonal skew to the spring / summer second half of the year. The company's debt stands at around 1x underlying EBITDA of $86.7 million.
It paid out 19 cents per share in 2016, which places it on a trailing yield of 3.9% plus the tax effective benefits of full franking credits.
