oOh!media has announced its results for the half year ended 30 June 2025 (1H25), demonstrating continued strong momentum across the group.
Outgoing managing director and CEO Cathy O’Connor highlighted the company’s first-half performance, with revenue rising by 17 per cent and adjusted underlying NPAT increasing by 46 per cent.
“These results validate the decisive steps we took in 2024 to enhance performance and streamline our cost base,” said O’Connor, who announced her resignation in April.
“Out of Home remains the best performing channel in Australian media, and with our market leading portfolio of over 35,000 assets reaching 98 per cent of metropolitan Australians weekly, we are well positioned to continue our strong momentum in a rising market.
“EBITDA growth of 27 per cent to $62.2 million reflects the strong operating leverage evident in our business, driven by revenue growth and disciplined cost control.
“The win of Transurban’s Melbourne and Brisbane motorway contracts during the period demonstrates our capability to secure and retain premium assets. It has added 42 premium motorway sites to our network, further cementing our market leadership position in all five capital cities.
“Reflecting our strong earnings performance, financial position and the Board’s confidence in the business outlook, our interim dividend has been increased by 29 per cent to 2.25 cents per share.”
Segment performance
Road: Revenue up 19 per cent to $120.3 million, driven by large format digital including West Gate Freeway.
Street furniture and rail: Revenue up 19 per cent to $108.0 million, supported by the continued rollout of Sydney Metro assets and Woollahra contract.
Retail: Revenue up 1 per cent to $58.6 million, with strong New Zealand growth offset by weakness in Australia due to a competitive market backdrop, with action currently being taken to address it.
Fly: Revenue up 43 per cent to $31.8 million, reflecting airport terminal upgrades and continued strengthening advertiser interest in these premium audience environments.
City & youth: Revenue down 3 per cent to $9.4 million with advertiser interest impacted by a delay in the launch of MOVE 2.0 which will capture these environments.
Other: Other grew by 27 per cent and includes growth in both Cactus and early revenues from reo.
Financial position
Net debt reduced to $105.0 million as at 30 June 2025 (Dec 2024: $108.3 million). The group’s banking facilities were refinanced and extended to 2030 at improved rates, with total capacity optimised to $265 million.
oOh!’s credit metrics continue to be within target range with the group’s gearing ratio (net debt / adjusted underlying EBITDA) as of 30 June 2025 of 0.7 times. The group’s target is to maintain gearing of 1.0 times or lower in the short-term and the gearing ratio is expected to improve further in the second half.
A non-cash impairment charge of $30.0 million was recognised following the non-renewal of the Auckland Transport contract, which accounted for 4 per cent of CY24 revenue. The impact is not material to Group operations and will be partially mitigated by targeted cost reductions. Following the conclusion of the Auckland Transport contract in mid-October, oOh! has no major medium term revenue expiry contract renewals.
CY25 outlook
Media revenue pacing for Q3 is tracking 5 per cent higher year-on-year, with performance strengthening in August and September following a softer July.
Looking ahead, market share growth (excluding retail and New Zealand) is anticipated for the remainder of calendar year 2025, supported by the rollout of new assets secured through contracts awarded in 2023 and 2024.
2H25 adjusted gross margin performance is expected to improve on 1H, with the full year to be circa 44.0 per cent.
Full year operating costs expected to be $159 million to $161 million with higher variable incentives based on stronger revenue and EBITDA performance than expected earlier in the year as well as additional investment in reo and supporting sales execution.
There is an additional $1 million expected in restructuring costs for the New Zealand business in 2H25. These restructuring costs are expected to drive an annualised benefit of $6 million to $7 million per annum from the fourth quarter onwards, with full run rate from Q2 2026.
Capital expenditure for CY25 is expected to be between $53 million and $63 million, subject to development approvals. Capital expenditure remains focused on revenue growth opportunities and concession renewals.
Out of Home advertising is expected to continue gaining revenue share from other media channels.
For the second half of 2025 (2H25), Out of Home growth is forecast to be in the mid to high single digits, reflecting sustained demand and the sector’s growing influence within the broader media landscape.
O’Connor is expected to step down in January 2026. oOh!media announced the appointment of James Taylor as managing director and CEO last week, with Taylor to commence by early 2026.
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