oOh!media (ASX:OML) reported a mixed performance for the calendar year 2025, highlighting strong growth in the first half, followed by a softer second half due to pressure on advertising budgets and the non-renewal of its Auckland Transport contract. Newly appointed CEO and managing director James Taylor, who took over in December, emphasized the company’s potential to enhance execution speed and leverage its national network as the Out-of-Home (OOH) sector grows.
Taylor framed his vision for the company by underscoring the inherent advantages of OOH advertising, including its transparency, brand safety, and the ability to tailor messaging according to time, location, and context. He noted OOH’s record 16.5% share of agency media spending, calling it “the last growing physical media channel.” To capitalize on this momentum, Taylor outlined plans to unlock additional value from the network through smarter pricing strategies and technology enhancements aimed at improving real-time visibility and automation.
MOVE 2.0 Launch Aims to Enhance Measurement Capabilities
A significant initiative discussed during the earnings call was the upcoming relaunch of the MOVE 2.0 audience measurement system, set to launch on March 9, 2025. Taylor described this upgrade as a “step change” in measurability and insight, providing greater granularity and segmentation to help advertisers understand how factors like location and time of day impact their campaigns. The new framework is expected to be particularly beneficial for the retail sector, which has faced challenges amid increasing competition, especially in the fast-moving consumer goods (FMCG) space.
Taylor acknowledged that the full reach and quality of the retail network would only become apparent once MOVE is operational, with plans to update the market on strategies for retail and “reo” (retail out-of-home) at the upcoming Annual General Meeting in May.
Financial Results Show Mixed Performance and Future Outlook
Chief Financial Officer Chris provided insights into the company’s financial performance, reporting revenue of $691 million for the year, marking a 9% increase year-on-year. The first half of the year saw remarkable growth, with a 17% increase in revenue. However, the second half experienced only a 2% growth rate, reflecting challenges related to advertising budgets and lower consumer spending.
The financial results took a hit from an $13 million impairment charge related to the loss of the Auckland Transport contract, with an additional $30 million non-cash impairment charge noted in previous interim results. Despite these setbacks, operating cash flow improved to $82 million, showing a significant recovery, while free cash flow rose to $28 million, up $20 million from the previous year.
In terms of revenue performance across different formats, billboards experienced a 10% increase, largely driven by demand for large-format advertising. Street and rail revenue also grew by 11%, fueled by strong performance in the Sydney Metro area. Airport revenue rebounded impressively, rising by 29% as travel began to recover. Conversely, retail revenue fell by 6%, reflecting the competitive landscape, while Office and Study formats declined by 7%.
Looking ahead, management indicated that Australian first-quarter media revenue is pacing at +7%, with the overall group pacing at +2%. Taylor expressed confidence in the first quarter but cautioned against making predictions for the second quarter, as it historically represents a high benchmark. The company anticipates an additional $27 million contribution from new contracts in 2026.
In discussions with analysts, management highlighted the competitive landscape and acknowledged QMS as a strong competitor in the OOH space. Taylor reiterated the belief that independence and specialization remain vital for success in the global OOH market. He plans to provide a comprehensive strategy update at the AGM in May, along with an Investor Day scheduled for the latter half of 2026.
oOh!media operates as an Out-of-Home media company, focusing primarily on Australia and New Zealand. Its portfolio includes a range of advertising formats, from large digital roadside screens to classic signs in retail locations, airports, and public transport corridors.
