oOh!media’s share price fell by more than 30% late last week after a company trading update noted a “softening media market” and said its Street revenue had been impacted by competitor QMS’ City of Sydney contract.
Market analysts described ASX-listed oOh!media’s trading update as “a surprise” and the company’s share price dropped sharply before closing on Friday at $1.22.
The trading update, delivered to a Macquarie Bank conference, was titled, “A challenging media environment but Out of Home still growing.” It said:
Softening media market at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand.
Q1 revenues grew +3% over Q1 2022, with trading softening significantly in March vs forward pacing as at mid-February with a decline in short term in-month bookings vs the pcp – particularly in Government spend (largest pcp category).
Road +7% and Fly +88% continue to grow strongly year on year, and oOh! taking market share in 3 out of 4 Australian OMA categories.
Street revenue continues to be impacted by launch of City of Sydney, with the share loss in this category resulting in an 1.9% share loss overall in Q1.
April media revenue is particularly soft, pacing at -10% vs pcp, however May and June media revenue stronger and pacing up on pcp, with Q2 currently slightly ahead vs the pcp.
Capex March YTD on track for guidance of $40-50M for CY23.
Share buyback commenced on 5th September 2022, with over 36 million shares bought back. This represents over 70% completion of the buyback program.
In February, oOh!media recorded an 18% increase in revenue to $592m for full-year 2022 as the company continued its strong post-pandemic recovery. Net profit of $56.2m was up by 343% compared to 2021.
