oOh!media Faces Revenue Hit as Auckland Transport Contract Expires

Contract Non-Renewal Announcement

oOh!media Limited, a leading player in the Out Of Home advertising sector, has announced that its contract with Auckland Transport will not be renewed beyond its expiry on 30 September 2025. This contract accounted for approximately 4% of the company’s reported revenue in the 2024 financial year, marking a notable but manageable portion of its business.

Strategic Preparedness and Market Confidence

While the loss of a contract is rarely welcome news, oOh!media has indicated that it had anticipated this outcome and has planned accordingly. The company expressed confidence in its ability to maintain a leading position within New Zealand’s Out Of Home advertising market despite this change. This suggests a level of strategic foresight and resilience in its business model.

Broader Business Context

oOh!media operates an extensive network of over 35,000 digital and static advertising assets across Australia and New Zealand, including roadsides, airports, retail centres, and public transport hubs. The Auckland Transport contract was just one component of this diversified portfolio. The company’s emphasis on a diverse lease maturity profile and strong contract discipline underlines its commitment to sustainable margin and earnings growth, as well as prudent capital returns.

Technological Edge and Future Prospects

Beyond contract management, oOh!media invests heavily in technology and data analytics to enhance audience targeting capabilities. This technological edge may prove critical in offsetting the revenue impact from the Auckland Transport contract loss by attracting new clients and expanding existing relationships. The company’s outlook remains cautiously optimistic as it navigates this transition.

Market Implications

For investors and market watchers, the key takeaway is that while the contract loss is material, it is not unexpected and has been factored into the company’s strategic planning. The transition away from Auckland Transport’s advertising assets will be completed by October 2025, and the market will be keen to see how oOh!media replaces this revenue stream and whether it can sustain growth momentum in New Zealand.