oOh!media books $340.9M half-year revenue

• oOh!media posted $340.9 million in revenue and announced a takeover agreement with I Squared.
• The group recorded an adjusted underlying EBITDA of $48.1 million amid challenging market conditions.
• The company stated it expects second-half revenue acceleration driven by structural cost savings and new contracts.

Advertising network oOh!media (ASX:OML) reported half-year revenue of $340.9 million and a binding takeover agreement.

Revenue in Billboards declined by 2% to $117.5 million, while street & rail revenue grew by 3% to $111.6 million. Revenue in retail grew by 1% to $59.2 million, representing the first half of growth in six halves.

Revenue in airports increased by 5% to $33.6 million, and revenue in offices & studies increased by 7% to $10 million.

The results reflected soft local market conditions and a weaker New Zealand outcome.

"In the first half, we onboarded the landmark Transurban and Melbourne Metro Tunnel contracts. We removed $12 million in annualised costs and capex through our Operational Excellence programme and exiting the reo retail media business," said oOh!media CEO James Taylor.

Taylor added that the company expects a materially stronger second half, with third-quarter revenue pacing up double digits and more than 100% of last year’s closing Australian Q3 revenue already booked.

An operational excellence programme and specific retail exits delivered $12 million in annualised structural savings.

The firm projected double-digit third-quarter pacing, and following the announcement, the oOh!media share price was unchanged at $1.66.

The business recently onboarded the Transurban and Melbourne Metro Tunnel contracts to maintain its domestic market share.

The pending $1.70 per share buyout by I Squared Capital includes a fully franked interim dividend.