oOh!media released its financial results for the half year ended June 30, showing robust performance in the out-of-home advertising market despite challenges.
The company recorded a 3% decline in revenue to $288.3 million, largely due to contract exits and renegotiations.
The group's Managing Director and CEO, Cathy O'Connor, addressed the issues contributing to the revenue dip.
"For oOh!, our 3% revenue decline was attributable to the previously announced exit of the Vicinity contract, and recontracting of a significant street furniture contract that reduced non-media revenue in return for a lower fixed rent.”
Despite revenue pressures, oOh!media managed to achieve a stable adjusted underlying EBITDA margin and expanded its adjusted underlying gross margin by 1.8 percentage points.
Adjusted underlying net profit after tax was down 11% to $18.2 million, while statutory NPAT fell 10% to $5.8 million.
The company's financial standing remains robust with a gearing ratio of 0.97 times and a declared interim dividend of 1.75 cents per share, fully franked.
The anticipated record date for dividend entitlement is Aug. 29, with payment scheduled for Sept. 23.
Looking ahead, oOh!media expects mid to high single-digit revenue growth in the OOH industry for 2024.
The company has a strong pipeline of new growth assets, projected to bring in $38 million in incremental annualised revenue starting in 2025.
oOh!media is an out-of-home media company engaged in offering advertisers the ability to create deep engagement between people and brands across diverse OOH location-based portfolios in Australia and New Zealand.