Outdoor advertiser oOh!media, owner of wide format business Cactus Imaging, has withdrawn its FY20 earnings guidance as it assesses the “potential financial implications” of COVID-19.
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| oOh!media's Cactus imaging in Sydney |
In a statement to the ASX on Monday, titled Financial Impact of Coronavirus (COVID-19), the company said:
“Revenue for the year to date has been in line with the prior corresponding period. The company’s performance in the first quarter is consistent with delivering the FY20 earnings guidance provided at the full year results on 24 February 2020.
“However, the deteriorating macroeconomic conditions and resultant market uncertainty caused by COVID-19 has made forecasting full year revenue in the current environment difficult.
“This is particularly relevant for oOh! given the Company has nine months remaining in its financial year to December 2020. In accordance with its continuous disclosure obligations, oOh! therefore advises that it has withdrawn FY20 earnings guidance for the time being.”
oOh! says it’s taking “decisive action to proactively manage the business through this period and ensure it remains well positioned for when conditions stabilise.”
Capital expenditure is being re-prioritised and will be "materially below" the bottom of the previous guidance range of $60-$70 million. Accordingly, the Company has also withdrawn its FY20 capex guidance.
“oOh! remains vigilant on cost and is maintaining strict cost and cash-flow discipline throughout the business,” it said. “Once market conditions stabilise, the company will seek to reinstate earnings and capital expenditure guidance."
In February, oOh!media reported a 23% fall in profit for calendar year 2019 to a net profit after tax of $37.9 million.
