Outdoor advertising company oOh!media has cautioned investors about a potentially weaker end to the year, citing softer advertising market conditions and the loss of a significant contract in New Zealand. oOh!media specialises in providing diverse and engaging out-of-home advertising solutions across Australia and New Zealand. The company’s network includes billboards, street furniture, retail spaces, and airport displays.
The company reported that its third-quarter revenue increased by 7 per cent compared to the previous year, slightly exceeding its projections from August. This growth was attributed to stronger market share gains, excluding retail and New Zealand operations. However, the company noted that subdued market conditions early in the fourth quarter are expected to result in revenues slightly below those of the corresponding period last year.
The slowdown is attributed to a notable decline in Australian advertising activity in October, which has broadly affected the out-of-home advertising sector. Additionally, the non-renewal of oOh!media’s Auckland Transport contract has significantly impacted revenues generated in New Zealand.
As a result of these factors, oOh!media now anticipates full-year 2024 revenue to be in the range of $689 million to $694 million, with a gross margin of approximately 43 per cent, a decrease from the previously forecasted 44 per cent. The company projects adjusted EBITDA to be between $139 million and $142 million, which includes restructuring costs associated with its New Zealand operations. Operating expenses are expected to remain stable at $159 million to $161 million, and capital expenditure is projected to be at the lower end of the $53 million to $63 million range.
