oOh!media reports strong revenue recovery for 2021 so far
oOh!media Limited has today announced its financial results for the half year ended 30 June 2021. The out of home (OOH) media company reported a 23 percent lift in revenue to $251.6 million compared to the prior corresponding period.
The company reported that underlying earnings have more than tripled to $33.3 million, cementing oOh!media as the top competitor in the market. Key formats including Road, Retail and Street Furniture in Australia have all shown promising recovery and New Zealand also performed at or slightly above 2019 levels.
After a tough 2020 for OOH, advertisers seemed to gain confidence in early 2021 and captialise on the flexibility of DOOH offerings. While COVID-19 and associated lockdowns are currently causing near-term uncertainty, there was a strong period of audience growth when pandemic conditions and lockdowns eased in the beginning of the year. It is expected that when the current lockdowns end this growth will continue.
The report confirmed a gross margin of 42.5 percent (up 8.8 points) demonstrating strong recovery towards pre-COVID levels. Underlying NPATA of $2.4 million compared to a loss of $16.9 million in the prior corresponding period. Net debt reduced by 16 percent compared to 31 December 2020.
Chief Executive Officer, Cathy O’Connor said: “In Australia audience levels were consistent up to May 2021 before declining as a result of the Melbourne lockdown in June. Overall revenue has held consistently at 80 percent of 2019 levels with revenue in Road performing particularly strongly at 116 percent of the first half of 2019.”
oOh!media says the promising result has been supported by fixed rent abatement with commercial partners and a clear focus on its core OOH assets, continued digitisation of core sites and audience-focused selling.
“The Out of Home sector is well positioned to grow its share of advertising revenue through improvements to measurement and further digitisation,” added O’Connor.
“Our core focus is on our OOH assets and redefining our offering through audience selling which capitalises on oOh!’s scale advantage to deliver increased effective reach to advertisers and revenue.”