oOh!media, Australia’s largest player in out-of-home, says its advertising bookings have picked up following a “softening” at the end of the March quarter.
oOh!media’s shares fell hard after a presentation to the annual Macquarie conference gave a trading update showing weaker bookings.
The shares hit a low of $0.98 on May 3, an almost 40% fall from the prior day’s close of $1.63. They closed yesterday at $1.26.
CEO Cathy O’Connor will tell shareholders at the annual general meeting today she is seeing an improvement in May and June compared to last year.
She says the March quarter is typically the smallest quarter for oOh! with revenue and earnings weighted to the second half and the June quarter.
May booked media revenue is currently ahead of the final booked May 2022 position by +5% and is pacing ahead by +11% at the same time last year.
June booked media revenue is close to 80% of the final booked position in the same month in 2022 and is pacing +14% ahead of the same time last year, with seven weeks to go.
“Q2 revenue is currently pacing overall at similar levels to Q1 at +3%, subject to the final weeks of trading,” she says.
“Pacing in Street Furniture is currently pacing positively in both May and June, however the outcome for these months in Street Furniture is not certain at this point.”
March quarter 2023 numbers:
oOh!media's chair Tony Faure acknowledged the presentation at the Macquarie Australia Conference which included an update on early 2023 performance.
“Whilst the first quarter and April revenue performance reflects short term market volatility, oOh!’s revenue and earnings are historically weighted to the second half of the year, and the fourth quarter in particular,” he says.
“And while we were disappointed in the share price decline last week, we remain firmly of the view that the medium term fundamentals for OOH remain positive and oOh! is uniquely positioned to leverage that growth opportunity.”
oOh!media revenue increased 18% to $592.6 million in 2022. Statutory net profit after tax was 400% higher at $31.516 million, compared to $10.28 million loss in 2021. Adjusted net profit after tax was $56.2 million, up 343%.
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