How Is oOh!media Driving Record Growth Amid Industry Shifts?

Strong Financial Performance Amid Market Tailwinds

oOh!media Limited (ASX, OML), a leading Out of Home (OOH) advertising company in Australia and New Zealand, has reported a strong first half for 2025, with statutory revenue rising 17% to $336.2 million and underlying EBITDA climbing 27% to $62.2 million. This growth reflects the sector’s ongoing momentum, as OOH advertising continues to outpace traditional media channels, capturing a record 16.5% share of agency media spend.

The company’s diversified asset portfolio, spanning roadsides, retail centres, airports, and public transport hubs, underpinned broad-based revenue gains. Notably, the Road and Street & Rail formats each grew 19%, driven by Sydney Metro’s strong performance and new contract rollouts in councils such as Waverley and Woollahra.

Strategic Contract Wins and Operational Efficiencies

Key contract wins, including a significant new agreement with Transurban Melbourne and Brisbane, have bolstered oOh!media’s market position. The company also reported disciplined sales execution improvements, aligning sales, product, and marketing teams to accelerate growth. Operational cost savings implemented earlier in the year have enabled reinvestment in growth initiatives, contributing to a 4% reduction in underlying operating expenses despite inflationary pressures.

These efforts have translated into improved margins, with adjusted underlying EBITDA margin expanding by 1.5 percentage points to 18.5%. The company’s gearing ratio improved to 0.7x, reflecting strong cash flow conversion of 77% and a reduction in net debt, positioning oOh!media well for future growth.

Impairment and Statutory Results Impact

While underlying results were robust, oOh!media recorded a non-cash impairment charge of $30 million related to the Auckland Transport contract, which concluded in October 2025. This impairment contributed to a statutory net loss after tax of $11.3 million, contrasting with an adjusted underlying net profit after tax increase of 46% to $26.5 million. The impairment reflects the company’s prudent approach to asset valuation and does not affect its operational cash flows.

Outlook and Leadership Transition

Looking ahead, oOh!media expects continued market share growth and margin improvement in the second half of 2025, supported by new assets coming online from recent contract wins. Capital expenditure is forecast between $53 million and $63 million, primarily funding new advertising assets. The company anticipates maintaining gearing below 1.0x adjusted EBITDA and expects Out of Home advertising to sustain mid to high single-digit growth, continuing to capture revenue share from other media sectors.

Additionally, oOh!media announced a 2.25 cents per share fully franked interim dividend, reflecting confidence in its financial position. A leadership transition is planned, with James Taylor set to assume the CEO role in late 2025 or early 2026, signaling a new chapter for the company’s strategic execution.