Above: oOh!media CEO Cathy O’Connor
oOh!media has announced its financial results for the half year ending 30 June 2024, reporting a loss in revenue by three per cent to $288.3 million.
The company said this was impacted by the exit and renegotiation of contracts and short-term market share loss.
In addition, its adjusted underlying net profit after tax (NPAT) was down 11 per cent to $18.2 million, and its statutory NPAT down 10 per cent to $5.8 million.
oOh!media managing director and CEO Cathy O’Connor said, “For oOh!, our three per cent revenue decline was attributable to the previously announced exit of the Vicinity contract, and recontracting of a significant street furniture contract that reduced non-media revenue in return for lower fixed rent. While this impacted revenue, it protected the gross profit margin. Adjusting for these contracts, revenue grew three per cent for the period.”
Within its Road (billboard) Format business, it reported a revenue loss of three per cent to $100.8 million.
As for its Street Furniture and Rail Format business, it declined by three per cent to $91.0 million.
Revenue in the Retail format segment declined by 10 per cent to $58.3 million.
Its Fly Format segment saw an overall revenue growth of six per cent for the half year, while its City and Youth Format (formerly Locate) business grew by 16 per cent for the half year.
According to the company, its financial position remains strong. Its net debt at 30 June 2024 was $125 million, compared to $84 million in December 2023, which is said reflects increased capital expenditure and working capital for new and renewed contracts.
It also said it expects mid to high single digit revenue growth for the industry in CY24, as Out of Home continues its structural growth, taking revenue share from other media sectors.
“We have a strong revenue pipeline, and anticipate securing at least $38 million in projected incremental annualised revenue from 2025 across a number of commercial contracts, including the renewal and expansion of Victoria’s Department of Transport and Planning, Australia’s single largest street furniture contract, and Melbourne Metro Tunnel greenfield sites. These are in addition to the $30 million projected incremental annualised revenue from contracts with Woollahra Council, Sydney Metro, and Sydney Metro Martin Place announced in CY23,” O’Connor said.
“While the overall media market remains challenging, the structural growth opportunity for Out of Home remains compelling… Our focus remains on leveraging this opportunity to build profitable market share, while diversifying into new adjacent revenue streams, such as reooh (oOh!’s turnkey retail media solution), to deliver long-term sustainable earnings growth.”
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