oOh!media shares soar on full-year profit, revenue outlook
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The news: Shares in oOh!media jumped more than 13% after the outdoor advertising company reported rise in adjusted net profit for the 2024 calendar year, outstripping market estimates by 6% and boosted by its $15 million cost-cutting program.
The numbers: oOh!media reported net profit after tax and amortisation of $56 million for the 12 months to December, up 2% year on year,and topping consensus forecasts of $53 million.
The company declared a full-year dividend of 5.25 cents, in line with the prior year.
Full-year revenue was flat year on year at $636 million, roughly matching forecasts of $635 million. oOh!media noted that improved revenue growth in the second half of the 2024 calendar year has accelerated into 2025, tracking 14% growth for the first quarter compared to the prior corresponding period.
The company's shares were up 13.4% to $1.46 at 3:45pm AEDT, having retreated nearly 20% over the last 12 months.
The context: oOh!media said it expects to drive revenue and market share growth during 2025, with further tailwinds expected from future interest rate cuts and market growth. It also anticipates mid-to-high single digit growth for the out of home category during the year.
What they said: "After a disappointing first half, we took action to drive revenue and market share growth and right-size our cost base which delivered improved moment in the second half," said chief executive Cathy O'Connor.
"Pleasingly, this momentum has accelerated in FY25, with double-digit revenue growth in February year to date."
The sources: ASX, UBS research
