Shares in oOh!media ignored a sharp downturn on the ASX sparked by fears of a spreading coronavirus.
At lunchtime, oOh!media (OML) shares were up 5.8% to $2.995. Yesterday they fell 3.4% after announcing weaker full year profits in a challenging advertising market.
At the same time, most media shares were slipping by 2% or more. The ASX200 index was down 1.1%
The company yesterday posted full year revenue of $649.6 million, up 1%, but underlying net profit after tax was down 23% to $37.9 million.
But analysts were generally positive about oOh!media's performance.
"OML came through the worst outdoor advertising market in a decade to produce a result that was slightly better than expected," analysts at Morgans write in a note to clients.
"While battening down the hatches might seem a more sensible strategy, OML continues to invest aggressively in capacityexpansion.
"If and when demand returns to the outdoor sector, OML will be well-placed to scoop up incremental industry revenue growth."
oOh!media expects the out of home sector to continue to gain market share this year.
CEO and founder Brendon Cook says out of home (OOH) market maintained market share in both Australia/New Zealand while the media market was challenging in 2019.
“In a tough year for media, the overall market declined by an estimated 5%. However, OOH continued to out-perform the broader market and grew by 1% in Australia."
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