Ooh Media withdraws FY20 earnings guidance due to financial impact of coronavirus
Media company Ooh Media has withdrawn the earnings guidance for its FY20 results amid the coronavirus (COVID-19) pandemic, claiming that the current environment makes it too difficult to gauge the impact of the virus.
In a statement released today to the Australian Securities Exchange (ASX), Ooh Media withdrew the guidance and declared it would be taking decisive action for the future of the business.
“In accordance with its continuous disclosure obligations, Ooh therefore advises that it has withdrawn FY20 earnings guidance for the time being,” the statement read.
“The Company is taking decisive action to proactively manage the business through this period and ensure it remains well positioned for when conditions stabilise, and continues to make every effort to achieve the prior earnings guidance.”
The statement went on to say capital expenditure would be re-prioritised to drop below the prior guidance range of $60-$70m.
In February, Ooh Media reported a 23% profit drop across the 2019 calendar year for an underlying net profit after tax of $37.9m.
Outgoing CEO Brendon Cook remained hopeful for the remainder of the 2020 calendar year, saying a strong fourth quarter in 2019 had given the business reason to be optimistic.
The business revised its earnings forecast to $125m-135m in August 2019 ahead of delivering the results, dropping from a prior guidance of $152 – $162m. The revision saw Ooh’s share price plummet in response.
“Ooh remains vigilant on cost and is maintaining strict cost and cash-flow discipline throughout the business,” read today’s ASX announcement.
“Once market conditions stabilise, the Company will seek to reinstate earnings and capital expenditure guide.”
