oOh!media Reports 13% Q1 Revenue Growth, $15M Cost Savings Target for 2025
oOh!media Limited reports robust revenue growth momentum continuing into 2025, driven by strong contract wins and disciplined cost management. The company expects sustained market share gains in the expanding Out of Home advertising sector.
- Q1 2025 revenue up 13% year-on-year, Australian media revenue up 16%
- Incremental $38 million annualised revenue from new contracts starting 2025
- Operating cost base right-sized with expected $15 million net savings in 2025
- Capex guidance of $45-55 million focused on new advertising assets
- Out of Home sector forecast to grow high single to low double digits in 2025
Strong Start to 2025
oOh!media Limited, Australia's leading Out of Home (OOH) advertising company, opened its 2025 Annual General Meeting with a confident update on its financial and operational performance. The company reported a 13% increase in total revenue for the first quarter compared to the previous year, with Australian media revenue growing even faster at 16%. This momentum reflects oOh!'s ability to capitalize on the ongoing shift in advertising spend towards OOH media, which continues to outpace traditional channels like television and radio.
Contract Wins and Revenue Growth
Central to oOh!'s growth story are recent contract wins that will add an incremental $38 million in annualised revenue starting this year. Notable new agreements include partnerships with Petbarn, Officeworks, and a pilot with Australia Post, signaling the company's success in securing high-value clients across diverse sectors. These contracts not only boost revenue but also enhance oOh!'s extensive network of over 35,000 digital and static advertising assets across Australia and New Zealand.
Cost Discipline and Operational Efficiency
Alongside revenue growth, oOh!media has focused on right-sizing its operating cost base, targeting net savings of approximately $15 million in 2025. The company expects its operating expenses to settle between $153 million and $155 million, although stronger-than-expected revenue performance could lead to higher variable incentives. This disciplined approach aims to preserve robust margins and position the company for sustainable profitability as it scales.
Investment and Market Outlook
Capital expenditure is forecast between $45 million and $55 million for 2025, primarily funding new advertising assets, subject to development approvals. oOh!media anticipates maintaining gearing below 1.0 times adjusted underlying EBITDA, reflecting a balanced approach to growth and financial prudence. The broader OOH sector is expected to continue its strong trajectory, with projected growth in the high single to low double digits, driven by audience expansion, digital innovation, and a media spend shift away from traditional platforms.
Positioning for the Future
oOh!media’s strategic focus on energizing its go-to-market approach, unlocking network potential, and leading in retail media positions it well to capitalize on the evolving advertising landscape. With a dominant reach of over 98% of metropolitan Australians weekly, the company is poised to leverage its scale and innovation to capture further market share in a sector that continues to gain prominence.
Bottom Line?
As oOh!media builds on strong early momentum, investors will watch closely how new contracts and cost efficiencies translate into sustained growth throughout 2025.
Questions in the middle?
- How will variable performance incentives impact oOh!media’s operating expenses if revenue growth exceeds expectations?
- What is the timeline and risk profile for development approvals tied to the planned capital expenditure?
- How will emerging digital innovations in OOH advertising influence oOh!media’s competitive positioning?
