oOh!media Commits to 10% Share Buyback Backed by Strong Growth
oOh!media has announced an on-market share buyback program of up to 10% of its issued capital, aiming to capitalise on what it sees as undervalued shares amid strong sector growth.
- On-market buyback of up to 10% of issued shares
- Buyback funded by existing cash and debt facilities
- Program to start on or after 12 March 2026, lasting up to 12 months
- Board cites strong growth trajectory and undervaluation
- Capital management framework includes maintaining gearing below 1.0x
Strategic Capital Move
oOh!media Limited (ASX:OML), a leading player in the Out of Home advertising sector, has announced a significant on-market share buyback program. The company plans to repurchase up to 10% of its issued share capital, signalling confidence in its current valuation and future growth prospects.
CEO and Managing Director James Taylor emphasised that the buyback is an efficient use of capital, reflecting the Board’s view that the shares are materially undervalued. This move comes amid a backdrop of strong and profitable growth for oOh!media, supported by robust fundamentals in the Out of Home advertising market.
Funding and Execution
The buyback will be funded through a combination of existing cash reserves and committed debt facilities, indicating the company’s readiness to deploy capital without compromising its financial stability. The program is expected to commence on or after 12 March 2026 and may continue for up to 12 months, with the exact timing and scale dependent on market conditions.
Importantly, oOh!media’s capital management framework includes maintaining a target gearing level below 1.0x, suggesting the company is balancing shareholder returns with prudent financial discipline.
Market and Sector Context
Out of Home advertising remains a dynamic sector, with oOh!media’s extensive network across Australia and New Zealand encompassing roadsides, retail centres, airports, and other high-traffic locations. The company’s confidence in the sector’s ongoing strength underpins its decision to buy back shares, aiming to enhance shareholder value amid what it perceives as undervaluation by the market.
While the buyback program introduces some uncertainty regarding timing and volume, it sends a clear signal to investors about management’s commitment to capital efficiency and confidence in the company’s growth trajectory.
Bottom Line?
oOh!media’s buyback sets the stage for renewed investor focus on valuation and growth execution in the Out of Home sector.
Questions in the middle?
- How will the buyback impact oOh!media’s share price and liquidity over the next year?
- Will the company maintain its target gearing below 1.0x if market conditions shift?
- How might competitors respond to oOh!media’s capital management strategy?
