Latest news with #OrganicRevenue
Gulf Business
6 days ago
- Business
- Gulf Business
Presight sees H1 revenue rise 80%, lifts outlook on strong backlog
Image: Getty Images/ For illustrative purposes Organic revenue, excluding the contribution from AIQ, grew 33.5 per cent year-on-year. EBITDA increased 59.6 per cent to Dhs245.5m, while net profit rose 18.8 per cent to Dhs209.7m. Q2 revenue climbed 53.5 per cent to Dhs 523.9m, with organic growth accounting for 19.7 per cent. Quarterly EBITDA rose 45.5 per cent to Dhs104.5m and net profit was up 11.5 per cent at Dhs89.7m, reflecting the impact of the 15 per cent corporate tax rate. International markets contributed 26.8 per cent of Q2 revenue, up sharply from 4.9 per cent a year earlier. New orders worth Dhs304 m brought the backlog to Dhs3.7bn, more than triple last year's level. The company ended the period with Dhs2bn in cash and no debt. Presight upgrades guidance Citing strong performance, a robust order backlog and a growing share of multi-year contracts, Presight raised its compound annual growth guidance for 2023-2027: Group revenue growth of 21 to 27 per cent (previously 19 to 25 per cent) Group EBITDA growth of 17 to 22 per cent (previously 16 to 21 per cent) Group post-tax profit growth of 7 to 12 per cent at a 15 per cent tax rate (previously 6 to 11 per cent) Contract wins and overseas push In the UAE, Presight signed contracts with the National Media Office and the Media Council, and agreed a strategic cooperation with the Abu Dhabi Department of Energy to develop an AI-powered energy and water management platform for nationwide deployment. Internationally, the company advanced its growth agenda in Asia and Africa. In Malaysia, it reached a landmark deal supporting the Madani AI initiative, while in Uganda it prepared to roll out a national digital government programme. Presight also opened an office in Astana, Kazakhstan, expanding energy sector partnerships via its majority-owned AIQ unit. 'Our first-half performance demonstrates that Presight continues to grow both domestically and internationally,' said CEO Thomas Pramotedham. 'Our backlog is three times larger than it was a year ago, and our sovereign partnerships continue to deepen. 'Our international expansion across high-growth markets in the Middle East, Asia and Africa… continues to be a material part of our growth trajectory. With disciplined execution, new AI platforms coming to market and a deep pool of talent, we are on track to meet our commercial objectives and to compete on a global stage.' Innovation and new initiatives During the period, Presight launched the first cohort of its AI-Startup Accelerator and, after the reporting period, rolled out a series of initiatives including an AI-Policing Suite in cooperation with Abu Dhabi Police. It also agreed a joint venture with the Central Bank of the UAE to develop sovereign AI-native financial infrastructure, and signed an MoU with Dow Jones to create AI-driven risk and compliance solutions for global financial institutions, regulators and sovereign entities. With a debt-free balance sheet and strategic global partnerships, Presight said it is positioned for continued growth by delivering sovereign AI solutions more quickly, deepening client relationships and driving value in key markets. The company's applied intelligence solutions could benefit from expanding UAE-US technology collaboration and the UAE's AI partnerships aimed at advancing global communities.
Yahoo
06-08-2025
- Business
- Yahoo
Outfront Media Inc (OUT) Q2 2025 Earnings Call Highlights: Navigating Revenue Challenges with ...
Organic Revenue: Essentially flat, in line with guidance. OIBDA: $124 million. AFFO: $85 million. Billboard Revenue: Down 2.5%, impacted by exits from two large contracts. Transit Revenue: Grew 5.6%, with 17% growth in Digital revenues. Digital Revenue: Grew 1.5%, representing over 34% of total organic revenues. Commercial Revenue: Up 1.4% year on year. Enterprise Revenue: Declined 4% during the second quarter. Billboard Yield Growth: Up about 0.5% year on year. Restructuring Charge: $19.8 million in the second quarter. Expected Expense Savings: $18 million to $20 million annually from restructuring. Billboard Expenses: Down 3.3% year over year. Transit Expenses: Up 3% year over year. Capital Expenditures: $26 million in Q2, with $7 million for maintenance. Net Leverage: 4.8 times as of June 30. Dividend: $0.30 cash dividend announced. Warning! GuruFocus has detected 12 Warning Signs with OUT. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Outfront Media Inc (NYSE:OUT) has undergone a significant internal reorganization to better align its sales teams and improve revenue growth. The company has centralized its operational and real estate functions to enhance efficiency and reduce administrative burdens. Outfront Media Inc (NYSE:OUT) reported a 5.6% growth in Transit revenues, driven by a 17% increase in Digital revenues. The company is focusing on digital conversions, which have shown approximately four times uplift in revenue versus pre-conversion levels. Outfront Media Inc (NYSE:OUT) expects annualized expense savings of approximately $18 million to $20 million due to restructuring efforts. Negative Points Billboard revenues declined by 2.5%, primarily due to the exit of two large, marginally profitable contracts in New York and LA. The company incurred a $19.8 million restructuring charge in the second quarter due to workforce reductions. Static Billboard revenues were down 1.6%, and Digital Billboard revenues declined by 4.5% during the quarter. Entertainment, health and medical, restaurants, and alcohol were weaker categories during the quarter. Outfront Media Inc (NYSE:OUT) faces challenges in engaging digital media buyers who have not yet embraced the digital out-of-home ecosystem. Q & A Highlights Q: The business has gone through significant changes recently, including new leadership and restructuring. Are you through the heaviest period of these changes, or are there more areas to address? A: We have focused on fundamental transformational issues this year, including resetting our sales strategy and modernizing workflow processes. While we've made significant progress, ongoing efforts continue, particularly in areas like AI, automation, and ad tech stack improvements. We believe we've addressed the major changes but will continue refining our processes. Q: Can you explain the weakness in the entertainment vertical, given the strong box office performance this year? A: While we secured deals with major studios like Universal and Disney, some key studios did not support their slates, leading to lower spending. We are optimistic about the entertainment sector in Q3, given the deals already committed. Q: Regarding the Q3 outlook, what are the drivers behind the acceleration in Transit, and what is the impact of the MTA and LA contract exits on Billboard? A: Transit growth is driven by improved focus and management incentives, particularly in New York. The MTA and LA contract exits will impact Billboard revenues, with each representing about 2% of our Billboard revenues in 2024. The biggest headwind will be in Q3, but we expect to lap the New York contract by Q4 and both by 2026. Q: With the decline in Static Transit revenue, is this due to ridership or a structural shift away from Static boards? Also, what is the potential for margin expansion from recent cost actions? A: The decline in Static Transit is expected as digital options are more appealing. We anticipate this trend to continue. Regarding cost actions, we expect $18 million to $20 million in annual savings, with half realized this year, contributing to margin expansion. Q: Despite revenue pressure, Billboard margins held up well. Are there additional cost levers to pull if revenue remains soft? A: We continue to manage our Billboard portfolio for margin optimization. While no large low-margin portfolios remain, we will keep refining our portfolio. We are focused on seeing the impact of recent changes before pulling additional cost levers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
