oOh!media Limited has provided an update on its expected performance for the year ended 31 December 2024 (CY24). Since last updating the market at its 1H24 results in August 2024, oOh! delivered Q3 revenue growth of +2 per cent on the prior corresponding period (pcp). Revenue growth in Q4 is expected to improve to between +3 per cent and +6 per cent on the pcp, which is lower than initially anticipated, with reasonably strong forward pacing not having converted to revenues as short-term booking activity slowed. Group revenues for CY24 are expected to be between $633m and $638m (CY23: $634m).
While forward pacing for Q1 CY25 indicates an improvement on Q4, oOh! is taking decisive action to respond to challenging media market conditions to protect market share and operating margins.
As part of this action, oOh! will be undertaking a restructure in early 2025 to simplify its operations and drive stronger performance. The restructure is expected to reduce the Company’s cost base by at least $15m, with cost reductions focused on operating and non-rent cost of goods lines, more than offsetting the impacts of inflation and additional business investment aimed at driving revenue growth. As a result, oOh! expects to have an operating cost base of approximately $150m to $155m in CY25.
The Group expects to report adjusted underlying EBITDA for CY24 of between $125m and $128m, before accounting for a one-off restructuring charge of between $3m and $5m and the previously announced $4m in one-off consulting costs. After accounting for these one-off charges, CY24 adjusted EBITDA is expected to be between $116m and $121m.
“In a challenging period for the wider media and advertising market, oOh!media is taking decisive action to ensure that we can operate sustainably through the cycle,” said oOh! chief executive officer, Cathy O’Connor.
“Today we are announcing initiatives to drive revenue growth and right size our cost base. These initiatives will position us to protect our #1 market share and grow revenues and earnings as market conditions improve.
“We remain highly confident in the long-term attractiveness of the Out Of Home (OOH) category, which continues to outperform the wider media market, with its market share growing to 15.1 per cent1 at the end of October 2024. As the market leader in Australia and New Zealand, oOh! Is strongly positioned.”
This news follows the announcement earlier this week that chief revenue and growth officer, Paul Sigaloff, will depart the company at the end of the year.
Sigaloff joined oOh! two years ago following a successful tenure at Yahoo. He was instrumental in driving the company’s digital-first strategy, significantly advancing oOh!’s programmatic capabilities and strengthening oOh!’s digital network advertising offering.
“This is a bittersweet moment for me. I’ve thoroughly enjoyed working with the talented team at oOh! and partnering with our incredible clients. I feel this is the right time to step away from this role and start a new chapter in 2025,” he said.
oOh! will announce its CY24 financial result on 24 February 2025, including an update on the progress of the business restructure.
