Out of home advertising player oOh!media has upgraded its full year earnings forecast after a pick up in billboard bookings.
The company now expects underlying EBITDA (earnings before interest, tax, depreciation and amortisation) to be between $138 million and $143 million.
This is an improvement on the guidance given in August of $125 million to $135 million.
At that time oOh!media, working in what it called an "extremely tough" advertising market, was looking hard at costs and sending its sales team hunting in response to a sudden drop in bookings.
Underlying net profit after tax for the half year to June was down 24% to $9 million.
oOh!media, which had now been a beacon of light in a tough advertising market, saw a fall in bookings, post the close of the financial year, for its big roadside billboards.
But the fourth quarter has seen a pickup.
"While the company’s advertising bookings declined in the third quarter versus the prior year, improved bookings for September and the fourth quarter, which have paced positively over the prior year, have resulted in an upgrade," says oOh!media in a trading update.
Growth in operational expenditure is expected to be within the previous forecast range of 5% to 7%.
Capital expenditure is expected to be at the mid to lower end of the $55 million to $70 million forecast range.
Financial results for the year ended to December 2019 are expected to be released February 24.
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