Credit: Joseph Barrientos via Unsplash
Outdoor media industry leader oOh!media reported a 9% cut in headcount, a reduction of 82 roles, and $12 million in cost savings.
In a trading update prior to the AGM, the company reported March quarter revenue up 4% overall and 7% in Australia, slightly ahead of February projections.
The June quarter is pacing on a “similar” trajectory.
oOh! said it first half gross margin would be softer than anticipated, driven by industry-wide pressure on billboards.
“The OOH sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!'s market leadership,” said CEO James Taylor.
“The launch of (industry measurement) MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers.”
He said the company had since February identified $12 million in annualised savings and an array of related operational benefits.
“This unlocks further value for our customers and shareholders,” he said.
“While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook.”
He is confident further efficiencies will be identified.
Taylor, five months in the CEO chair, said he is more convinced than ever in the quality of the oOh! business and the size of the opportunity ahead.
Two private equity firms, Pacific Equity Partners and I Squared Capital, have made takeover bids for oOh!media.
The outdoor media player has rejected both offers but has invited talks.
Slide from a presentation to today's AGM:
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