oOh!media Posts 17% Revenue Growth and Raises Dividend by 29%

Strong Market Momentum

oOh!media Limited has delivered a compelling performance for the half year ended 30 June 2025, reinforcing its dominant position in the rapidly expanding Out of Home (OOH) advertising market. With revenue up 17% to $336.2 million and adjusted underlying net profit after tax (NPAT) soaring 46% to $26.5 million, the company’s results reflect both strategic execution and favourable market dynamics.

The OOH sector continues to gain traction, now accounting for 16.5% of total agency media spend, a testament to its growing appeal among advertisers seeking impactful, large-scale audience engagement beyond traditional digital and broadcast channels.

Segment Highlights and Contract Wins

Growth was broad-based across key formats. The Road segment, buoyed by large format digital assets including the West Gate Freeway, saw revenue increase 19% to $120.3 million. Similarly, Street Furniture and Rail revenues rose 19% to $108 million, supported by new Sydney Metro assets and the Woollahra contract. The Fly segment experienced a remarkable 43% jump to $31.8 million, driven by airport terminal upgrades and heightened advertiser interest in premium travel environments.

Notably, oOh! secured Transurban’s Melbourne and Brisbane motorway contracts, adding 42 premium motorway sites and further cementing its market leadership across Australia’s five capital cities. This strategic win underscores the company’s ability to capture and retain high-value assets in a competitive landscape.

Financial Discipline and Dividend Growth

Operational leverage was evident with adjusted underlying EBITDA climbing 27% to $62.2 million, reflecting disciplined cost control alongside revenue expansion. The company’s balance sheet remains robust, with net debt slightly reduced to $105 million and gearing comfortably within the target range at 0.7 times adjusted EBITDA.

Reflecting confidence in ongoing performance, the Board declared a fully franked interim dividend of 2.25 cents per share, a 29% increase from the prior year. This payout ratio of 46% aligns with the company’s policy of distributing 40-60% of adjusted underlying NPAT, signaling a shareholder-friendly approach amid growth.

Challenges and Leadership Transition

The company recorded a non-cash impairment charge of $30 million due to the non-renewal of the Auckland Transport contract, which accounted for 4% of 2024 revenue. While this is a setback, management expects the impact to be manageable and partially offset by cost reductions and restructuring initiatives in New Zealand.

Looking ahead, oOh!media is preparing for a leadership transition as CEO Cathy O’Connor steps down, with James Taylor appointed to take the helm in late 2025 or early 2026. This change comes at a pivotal time as the company aims to sustain its growth trajectory and capitalize on emerging opportunities in the OOH sector.

Outlook for the Remainder of 2025

Market conditions remain positive, with third-quarter media revenue pacing up 5% year-on-year and expectations for mid to high single-digit growth in the second half. The company anticipates improved gross margins and continued market share gains as new assets come online. Capital expenditure is forecast between $53 million and $63 million, focused on growth and concession renewals, while gearing is expected to stay below 1.0 times adjusted EBITDA.

Overall, oOh!media’s half-year results and strategic positioning suggest it is well placed to maintain momentum in a competitive media landscape increasingly favouring Out of Home advertising.