oOh Media boosts earnings by 62%, while Fly segment lifts 83%
oOh Media (ASX:OML) has today released its H122 financial results, revealing a 10% increase in revenue and audience growth across out-of-home formats.
oOh Media reported that it ‘continues to implement revenue growth initiatives’ through leveraging its existing portfolio of assets and ‘continued digital investments in both screens and programmatic’ to enable ‘a strong half year performance with double-digit revenue growth’, according to CEO Cathy O’Connor.
oOh Media delivered revenue of $276.1m in the reporting period ending 30 June.
Adjusted underlying EBITDA increased by 62% on the prior corresponding period to $51.5m, reflecting a strong operating leverage.
oOh Media’s financial position continued to strengthen during the period with a 37% decline in net debt. Net debt at 30 June 2022 sat at $39.8m compared to $63.5m at 31 December 2021.
The business’ gearing ratio also indicated enhanced credit metrics, seeing a reduction to 0.4 times in contrast to 0.8 times as at 31 December 2021.
Retail revenues saw a 10% spike to $63.1m, with the business pegging the growth as the result of advertisers returning to promote their brands, products and services through oOh!’s retail portfolio.
Re-openings of state borders and tapering back of COVID restrictions saw significantly improved performance in the Fly segment, focused around airports, with revenue increasing by 83% over the prior corresponding half to $12.2m. Month-on-month revenue growth continues to be seen as domestic and international passengers return to the skies.
The momentum of the Locate format’s recovery was weakened by the slow return of audiences to CBD offices. Regardless, revenue in this segment increased by 19% to $9m.
oOh Media billboard inventory saw several significant acquisitions in H1, notably in Queensland and New Zealand.
Earlier this month, oOh Media also inked an exclusive multi-year partnership with News Corp Australia to deliver customised content experiences for audiences across oOh!’s national digital out-of-home network.
“Our strategy remains focused on oOh being a more digital and digitised Out-Of-Home business. During the half year period, we launched 378 new digital sites in key locations, including 11 new Road digitals and 21 new and upgraded Retail centres. We continue to participate in the emerging programmatic digital Out of Home marketplace with our programmatic revenue more than doubling in the second quarter of CY22 compared to the first quarter,” said O’Connor.
The business declared an interim dividend of 1.5 cents per share fully franked.
oOh Media today announced an on market share buyback of up to 10% of its issued share capital, approximately $75m, expected to commence in September 2022.
oOh Media shares trade at A$1.24 today with a market capitalisation of 742.26 million.
