oOh!media, announcing results for the full year, says it's strongly positioned to capitalise on improving audience and market conditions.
Revenue fell by 34% to $426.5 million in the 12 months to December but the company reported significant recovery in the fourth quarter across key formats, including Road, Retail and Street Furniture.
The underlying loss was $8 million compared to $52.4 million profit the previous year.
The December quarter paced at 70% of the same three months in 2019. The March quarter is at 80% of the corresponding period in 2019.
Cathy O’Connor, the new CEO, says oOh!’s decisive response to the COVID-19 movement restrictions across Australia and New Zealand ensured the company managed the short term challenging conditions during the year.
“The unprecedented restrictions on people movement and resulting audience decline impacted out-of-home more severely than other media segments.
“In response, oOh! acted quickly and decisively to maintain and strengthen our competitive position."
That included a $167 million equity raising, refinancing of debt facilities, negotiation with property partners to deliver $63 million in net fixed rent savings, capital expenditure reduction of $49 million and operational cost savings of $16 million (excluding JobKeeper).
“In the meantime, the company adapted and refined our offer to advertisers, leveraging the strength of our suburban and regional network," she says.
"The company also continued to invest in our network assets, including key digital sites such as Military Road in Mosman.
“The company remains focused on margin growth through the recovery cycle by achieving rent reductions beyond 2020, delivering structural cost savings approaching $10 million annual run rate achieved at the end of CY20 and remaining disciplined on capital expenditure.
“As a result, oOh! has strengthened its capacity to manage in the current environment while remaining well positioned to leverage the audience and revenue recovery already evident across our key formats.”
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