oOh!media posts 7% revenue jump in Q1 despite weakness in billboard advertising

The news: oOh!media reported a 7% increase in first-quarter revenue for its Australian segment, while group revenue increased 4%, which the company said is “slightly” ahead of guidance provided in February.

The company noted that second-quarter trading is tracking at a similar pace.

The numbers: Capital expenditure is projected to be between $45 million to $55 million, down from the $55 million to $65 million expected in February.

The context: The company flagged that gross margin in the first half will be softer than anticipated, as its billboard medium, which accounts for 40% of group revenue has been performing below expectations due to increased rent on new contracts. Out of home billboard gross revenue declined by 1% in the first quarter.

oOh!media also flagged that underlying adjusted operation expenditure will be slightly below the prior corresponding period in the first half.