oOh!media has provided an update on its expected performance for the year ending 31 December 2024, adding it will undertake a restructure in early 2025.
Since last updating the market in August, oOh!media delivered Q3 revenue growth of two per cent on the prior corresponding period. It expects Q3 revenue growth to improve to between three and six per cent, which is lower than originally anticipated, with reasonably strong forward pacing not having converted to revenues as short-term booking activity slowed. The company expects Group revenues of between $633m and $638m.
Cathy O’Connor, chief executive officer at oOh!media, said, “In a challenging period for the wider media and advertising market, oOh!media is taking decisive action to ensure that we can operate sustainably through the cycle.
“We are announcing initiatives to drive revenue growth and right size our cost base. These initiatives will position us to protect our number one market share and grow revenues and earnings as market conditions improve.”
The company says its restructure in early 2025 will simplify its operations and drive stronger performance. It expects the restructure to reduce the company’s cost base by at least $15m, with cost reductions focused on operating and non-rent cost of goods lines, more than offsetting the impacts of inflation and additional business investment aimed at driving revenue growth.
As a result, oOh!media expects to have an operating cost base of approximately $150m to $155m in 2025. The group expects to report adjusted underlying EBITDA for 2024 of between $125m and $128m, before accounting for a one-off restructuring charge of between $3m and $5m and the previously announced $4m in one-off consulting costs. After accounting for these one-off charges, it expects 2024 adjusted EBITDA to be between $116m and $121m.
O’Connor adds, “We remain highly confident in the long-term attractiveness of the out of home category which continues to outperform the wider media market, with its market share growing to 15.1 per cent at the end of October 2024. As the market leader in Australia and New Zealand, oOh! Is strongly positioned.”
oOh!media will announce its CY24 financial result on February 24, 2025. This will include an update on the progress of the business restructure.
