oOh!media shares tumble on lower-than-expected earnings, higher cost guidance
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More news: Shares in oOh!media slid after the outdoor advertising company reported that EBITDA was lower than expected for the first half of 2025 and is guiding higher costs for the full year.
At 12:03pm AEST, shares in oOh!media had fallen 9.9% to $1.60.
E&P Financial Group executive director for media and telco research Entcho Raykovski said “the outlook is solid but slightly lower than consensus, and given the slight miss to 1H25 numbers, we’d expect the stock to underperform the market today”.
UBS analysts said EBITDA was a 2% miss to consensus and the operational expenditure guidance range has been increased to between $159 million and $161 million from the prior guidance of $150 million and $155 million, driven by higher employee incentives.
oOh!media posts half-year loss despite revenue gains
The news: Outdoor advertising and billboard business oOh!media has reported a $11.3 million loss after income tax for the first half of 2025 amid a $30 million non-cash impairment, although revenue was better than expected.
The numbers: In the previous comparable period oOh!media had reported profit after tax of $5.8 million. The 2025 half-year figure was also lower than the market consensus estimate of $16.1 million net profit, according to Visible Alpha data.
Meanwhile, total revenue for the first half of 2025 came in at $336.2 million, 17% higher than the $288.3 million reported in the first half of 2024. This was higher than the market consensus estimate of $326.5 million.
The company declared a fully franked interim dividend of 2.25 cents per share, better than the 1.75 cents per share declared in the previous corresponding period. Analysts had expected a payout of 2.33 cents per share.
The record date for entitlement to receive the interim dividend is 28 August.
Full year capital expenditure is expected to be between $53 million and $63 million, subject to development approvals.
The context: oOh!media took a $30 million non-cash impairment after its contract with Auckland Transport was not renewed, with the existing contract to expire in October. The contract had accounted for 4% of 2024 revenue.
The company said that the impairment is not material to the group's operations, with the impacts of this development to be "partially mitigated by targeted cost reductions".
Market share growth is expected for the remainder of calendar year 2025 and second-half adjusted gross margin performance is expected to be higher than the first-half. This is expected to take the full year margin to about 44%.
