MediaWorks has secured 10-year contract with Auckland Transport (AT) to manage its full portfolio of around 2,000 advertising assets across AT’s network, including bus shelters, bus wraps, and digital display screens – taking the contract from previous operator, oOh!media.
“We are thrilled to announce our partnership with MediaWorks to manage what is New Zealand’s largest out-of-home asset portfolio, following a very competitive process,” said AT chief financial officer Mark Laing.
“The out-of-home media industry is experiencing exciting growth and MediaWorks’ proposal demonstrated strong delivery capability and alignment with AT’s strategic objectives.”
In a statement to shareholders this morning announcing that its contract, which was due to expire on 30 September 2025, would not be renewed, oOh!media said: “While oOh! is disappointed with this outcome, it has planned for this eventuality and is confident in maintaining a leading position in the New Zealand Out Of Home market.
“The contract represented 4 per cent of oOh!’s FY24 reported revenue. Auckland Transport has confirmed its plans to transition out of the current arrangement by October 2025. oOh! maintains a diverse lease maturity profile and strong contract discipline with a focus on achieving sustainable margin and earnings growth and returns on capital.”
Laing said the partnership with MediaWorks will deliver a substantial increase in advertising revenues.
“Under the new agreement AT expects to receive a minimum of $220 million revenue over the next 10 years. Revenue will be higher than this if the market continues to grow as forecast,” Liang said.
AT currently receives around a quarter of the gross advertising revenue generated from its Out of Home media assets. Under this new partnership AT will receive more than half.
“Last year, AT earned $7 million in advertising revenue. This coming year this will more than double,” Liang said.
MediaWorks CEO Wendy Palmer said, “We are absolutely thrilled to have been appointed as Auckland Transport’s partner to develop and grow Auckland’s most prestigious and important out-of-home assets.
“This win is a game changer and re-shapes the way New Zealand out-of-home will be planned and bought by advertisers.
“Our team approached the tender strategically to demonstrate the value and growth we can provide both Auckland Transport and our clients with a new exciting offering that sees street furniture integrated into our existing Auckland Transport portfolio.”
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