oOh!media (ASX:OML) has announced its financial results for the year ending 31 December 2022, reporting an NPAT of $56.2 million compared to the $12.7 million it revealed for the prior year.

This is an increase of 343 per cent, with its revenue up by 18 per cent to $592.6 million and its Adjusted Underlying EBITDA up 64 per cent to $127.1 million.

Its CEO Cathy O’Connor said oOh! delivered a strong financial result demonstrating the significant structural growth opportunity of Out of Home as a fast-growing media format.

“Over the course of the year, Out of Home continued its strong structural growth, consistent with its pre-pandemic trajectory and is the fastest growing major media format in Australia,” she said.

“The Outdoor Media Association recently released the 2022 results where in addition to announcing that Out of Home had exceeded $1billion in net media revenues it expects a revenue CAGR of nine per cent over the next four years.

“As the largest player in Out of Home across Australia and New Zealand, we continued to capitalise on this growth to deliver revenue growth of 18 per cent for the year.

“Meanwhile, our strong operating leverage and cost discipline has enabled us to grow earnings faster than revenue with Adjusted Underlying EBITDA growth of 64 per cent. That has translated to an Adjusted Net Profit of $56.2 million, up 343 per cent on the prior year.”

According to O’Connor, the company is seeing continued momentum into FY23 with its first quarter revenue pacing at eight per cent ahead of the prior corresponding quarter last year with February and March stronger than January.

Within its various business divisions, its Road (billboard) division maintained its strong performance, continuing its solid result from the prior year. Revenue for CY22 increased by 21 per cent to $191.1 million.

oOh! added 31digital locations to its metropolitan and regional roadside billboard portfolio during the period and now has over 200 large format digital signs across Australia.

Revenue in the Retail format increased by 14 per cent to $142.9 million compared to the prior year. The continued recovery in air travel reflected strong revenue growth in the Fly category which increased by 176 per cent to $33.8 million on the prior year.

In addition, revenue in the Locate format increased by 47 per cent to $17.4 million and revenue in Street Furniture and Rail increased by eight per cent to $196.5 million.

The Other category, which primarily includes revenue from the Cactus Imaging business, saw a revenue of $10.8 million from $14.1 million the previous year, but the revenue for the prior year included the financial results of Junkee Media’s digital publishing business that was divested to the RACAT Group in December 2021.

“I am pleased with our strategic progress during the year in continuing to build a more digital and digitised Out of Home business,” O’Connor said.

“During FY23, we launched 477 new digital sites in key locations, including 31 new Road digitals and 21 new and upgraded Retail centres.

“We enhanced our Better Ways to Buy initiative with Brand Buyer Tracking giving advertisers an exclusive opportunity to evaluate and attribute sales results compared to the rest of their category.

“We are enabling advertisers to push Out of Home creative boundaries to capture more of consumers’ attention and deliver superior ROI with the launch of our Full Motion Video network, oOh! Motion, our 3D Anamorphic offering, oOh! Dimensions, and our new content partnerships with the AFL and the Australian Open.

“We are also leveraging our leading retail media presence across Australia with the launch of REOOH which is an Out of Home solution designed specifically for major retailers to fast-track the growth of their retail media businesses by offering a digital OOH network as part of their integrated retail media offering.

“Meanwhile we continue to participate in the emerging programmatic digital Out of Home marketplace.

“Together, these initiatives are driving our strategy to lead Out of Home to a digital first future, capture audience attention in public spaces at scale, and make it easy for advertisers to achieve better outcomes and ROI.”

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