The ASX has questioned outdoor media specialist oOh!media on whether it had kept the market informed about its expectations for earnings in the half year to June.
oOh!media reported revenue up 17% to $336.2 million in the half year to June, driven by strong performance in road, street furniture, rail and fly.
The stock exchange questioned the fall in the company’s share price to $1.59 from $1.77 when the results were announced.
The company shares were trading at $1.65 today, down from the year high of $1.83 but up from the low of $1.11.
The ASX asked whether oOh!media considered that any measure of its statutory or underlying earnings differed materially from the “market’s expectations”.
Listing Rule 3.1 requires a company to immediately give ASX any information that a reasonable person would expect to have a material effect on the price or value of shares.
“Does OML (the company’s ASX code) consider that, at any point prior to the release of the Results Announcements, there was a variance between its expected earnings and its estimate of market expectations for the relevant reporting period of such a magnitude that a reasonable person would expect information about the variance to have a material effect on the price or value of OML’s securities?” the ASX said.
oOh!media said it believes it was performing materially in line with the information it provided to the market and the consensus among market analysts.
“The company believes that its earnings for 1H25 are in line with market expectations,” the oOh!media replied to the ASX.
“oOh! undertakes a regular forecasting process, which confirms expectations for company performance against any information provided to the market and the consensus estimate.”
The company did not publish specific earnings guidance for the June half but it did provide trading and operational updates to the market.
On July 15, the oOh! announced that it had been informed of the non renewal of the Auckland Transport contract representing 4% of oOh!’s reported revenue in the 2024 financial year.
On August 18, the company advised a non-cash impairment charge of $30 million was recognised following the non-renewal of the Auckland Transport contract.
“The impact is not material to oOh! group operations and will be partly mitigated by targeted cost reductions,” the company said.
oOh! said it considers that there may be a variety of factors which may have influenced trading in its securities following the results announcements.
And a number of broker reports have been issued and oOh! has also been actively engaging with market participants as part of an investor roadshow.
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