oOh!media (ASX:OML) has released a trading update, reporting a 2% revenue growth in the third quarter ended Sept. 30 compared to the prior corresponding period, with expectations for fourth-quarter revenue growth between 3% and 6%.
The company anticipates total revenues for 2024 to reach between $633 million and $638 million.
The company is taking steps to address challenging market conditions by undertaking a restructuring to simplify its operations and reduce its cost base by over $15 million.
The restructuring efforts are expected to bring the operating cost base to approximately $150 million to $155 million in 2025.
CEO Cathy O’Connor expressed confidence, stating, "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." She highlighted the company's initiatives to drive revenue growth and maintain market leadership.
oOh!media projects its adjusted underlying EBITDA for 2024 to be between $125 million and $128 million, before one-off restructuring charges estimated between $3 million and $5 million.
The company remains optimistic about the long-term prospects of the Out of Home category.
The FY24 financial results are scheduled to be announced on Feb. 24 2025, alongside an update on the business restructuring progress.