oOh Media posts 406% jump in full-year net profit to $31.5m
In its latest full-year earnings, ASX-listed out-of-home company oOh Media posted a 406% year-on-year (YoY) increase in reported net profit after tax to $31.5 million, bouncing back from a $10.3 million loss at the end of 2021.
The group revenue for the 12 months ended 31 December 2022 was $592.6 million, an 18% YoY increase from $503.7 million in 2021.
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Earnings before interest, taxes, depreciation and amortisation (EBITDA) was $288.1 million for 2022, a 20% increase YoY compared to $240.3 million last period. The EBITDA margin also increased by 0.9 points to 48.6% in this period.
By format, street furniture and rail brought in the most revenue for the group, accounting for $196.5 million in 2022. However, its fly division around airports saw the biggest jump with a 176% YoY increase in revenue to $33.8 million this period.
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Road and retail, meanwhile, are said to have exceeded the pre-COVID level (CY19), respectively bringing in $191.1 million and $142.9 million of revenue this period.
The company has increased dividends to shareholders with a final dividend of 3 cents per share fully franked, bringing the full-year dividend to 4.5 cents fully franked. The company also implemented on-market share buyback.
The net debt was $32.9 million as of 31 December 2022, a 48% decrease compared to $63.5 million in 2021.
Looking into 2023, capital expenditure is expected to increase towards pre-COVID levels as supply chain restrictions ease further. It is expected to be between $40 million and $50 million compared to $27 million in CY22, and remain focused on revenue growth opportunities and concession renewals.
Ooh Media CEO Cathy O’Connor
According to OOH industry body OMA, the format’s revenue has hit $1 billion in 2022. CEO of oOh Media, Cathy O’Connor, said the financial results reflected strong growth in this sector.
“As the largest player in out-of-home across Australia and New Zealand, we continued to capitalise on this growth to deliver revenue growth of 18% for the year,” she said.
“We are seeing continued momentum into FY23 with first quarter revenue pacing at 8% ahead of the prior corresponding quarter last year with February and March stronger than January.
“I am also pleased with our strategic progress during the year in continuing to build a more digital and digitised out-of-home business.
“During FY23, we launched 477 new digital sites in key locations, including 31 new Road digitals and 21 new and upgraded Retail centres.
“We are enabling advertisers to push out-of-home creative boundaries to capture more of consumers’ attention and deliver superior ROI with the launch of our Full Motion Video network, oOh! Motion, our 3D Anamorphic offering, oOh! Dimensions, and our new content partnerships with the AFL and the Australian Open.
“We are also leveraging our leading retail media presence across Australia with the launch of Reooh which is an out-of-home solution designed specifically for major retailers to fast-track the growth of their retail media businesses by offering a digital OOH network as part of their integrated retail media offering.
“Meanwhile we continue to participate in the emerging programmatic digital out-of-home marketplace.”
The share price for oOh Media on 20 February is $1.48, and the market capitalisation is $860 million.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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