The impact of COVID has shown itself in the full year results of out of home media giant, oOh!media, with the company posting a net loss after tax of $35.7 million for 2020.
Whilst each category suffered as COVID lockdowns and restrictions cut commuter numbers sending each sector of the OOH pie down, the fourth quarter showed some hope with gains in key formats.
The Road category – which comprises billboard assets and largely relates to the work down by subsidiary wide format printer Cactus Imaging – was the sector that performed the strongest for the company.
oOh!media says it continue to leverage its diversity and scale and strong suburban network to deliver results for advertisers. The company also reports that revenue in this sector recovered as restrictions began to ease. Full year revenue for road declined by 19 per cent to $118 million.
oOh!media says fourth quarter revenues were at 70 per cent of the prior comparative period compared to 57 per cent in the third quarter indicating recovery.
The main bounce back has been seen in the road, retail, street furniture and New Zealand sectors, while fly and locate which relate to travel have been significantly hit due to reduced traveller numbers and CBD audiences.
Revenue declined by 34 per cent for the the year to $426.5 million, while underlying EBITDA was $63.2m in 2020, compared to $139m in 2019.
The company also reported an underlaying NPATA loss of $8 million compared to $52.4 million profit in 2019.
oOh!media’s new chief executive officer, Cathy O’Connor said despite the challenging year with the pandemic, the longer term fundamentals for out of home remain positive.
“Out of Home is a highly effective medium to deliver impactful national broadcast reach in all markets during this period and beyond,” O’Connor said.
“The company saw this through the COVID-19 pandemic with our network playing a pivotal role in public messaging for government agencies and regulatory authorities.
“Our strategy remains focused on capitalising on the key structural drivers of growth in Out of Home and leveraging our diverse product portfolio, backed by data, to deliver results for advertisers.”
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