oOh!media (ASX:OML) has announced its half year results for the financial year ending 30 June with the out of home giant posting a reported net profit after tax (NPAT) of $6.1 million, compared to a loss of $9.3 million in the prior year.
The adjusted NPAT, which takes into account adjustments for the impact of AASB 16 accounting standards and non-operating expenses including acquisitions and integrations, for the half was up 810% to $20.4 million. The Adjusted Underlying EBITDA was $51.5m, up 62% compared to the prior period.
Total revenue across the company increased 10% to $276.1 million with revenue growth led by broadcast formats with the Road, Retail and Street categories outperforming the first half of 2019.
“The company’s strong operating leverage, combined with outgoing operational discipline, ensured earnings continued to grow faster than revenue with adjusted underlying EBITDA increasing by 62 per cent on the prior corresponding period to $51.5 million,” the company said.
“oOh!’s financial position continued to strengthen during the period with a 37 per cent decline in net debt from 31 December 2021.”
oOh!media also announced an on market share buyback of up to 10 per cent of its issued share capital, approximately $75 million, expected to commence in September.
The Road (billboard) category continued to be strongest performer with revenue increases of 17% in the half to $92 million. oOh!media said it continues to leverage the diversity and scale of its metropolitan and suburban network to deliver results for advertisers.
Revenue in the Retail business unit increased by 10 per cent to $63.1 million, compared to the prior corresponding period. The company said the growth in retail improved throughout the half year as advertisers continue to return to promoting brands and products/services within oOh!’s retail portfolio.
Revenue in street furniture and rail increased by five per cent to $96.1 million, with the prior period including $6 million in revenue from the Sydney Trains contract. The company said revenue in this division continues to increase and is performing at similar levels to pre-COVID-19.
With the reopening of state borders and the return of domestic travel, the Fly segment enjoyed a revenue increase of 83 per cent over the prior corresponding period to $12.2 million.
The financial statement also shows that revenue from Junkee Media and Cactus Imaging was $3.7 million.
As part of the company’s focus on out of home, oOh!media sold Junkee Media’s digital publishing business to RACAT Group in December 2021 but retained the branded content and production arm.
The Locate segment continues to be impacted by the slow return of workers to CBD office environments. Revenue in this segment increased by 19 per cent to $9 million.
oOh!media CEO Cathy O’Connor said, ”Our strategy remains clear and consistent. We continue to implement revenue growth initiatives through leveraging our portfolio of existing assets with continued digital investments in both screens and programmatic and further enhancing our data capabilities.
“That has enabled a strong half-year performance with double-digit revenue growth. Our strategy remains focused on oOh! Being a more digital and digitised out of home business.
“For the medium-term, the fundamentals for out of home as a growth advertising medium remains compelling and oOh! Remains exceptionally well-placed to leverage that growth.”
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter