How Did oOh!media Grow Revenue 17% Yet Post a $11.3M Loss?

Strong Revenue Growth Amid Market Challenges

oOh!media Limited (ASX – OML), a leading player in the Out of Home (OOH) advertising sector across Australia and New Zealand, has reported a 17% increase in revenue to $336.2 million for the half year ended 30 June 2025. This growth was primarily driven by strong performances in the Road, Street & Rail, and Fly advertising formats, reflecting the company's continued ability to capture market share in a competitive media landscape.

Despite this top-line growth, the company recorded a statutory net loss after tax of $11.3 million, a sharp reversal from the $5.8 million profit in the prior corresponding period. This loss was largely attributable to a $30 million non-cash impairment charge related to the non-renewal of the Auckland Transport street furniture advertising contract in New Zealand, which expires in October 2025.

Operational Highlights and Strategic Wins

oOh!media's adjusted underlying EBITDA rose 27% to $62.2 million, while adjusted underlying net profit after tax surged 46% to $26.5 million, underscoring strong operational leverage and effective cost management. The company continued to expand and digitise its asset base, securing key contracts including Transurban’s Melbourne and Brisbane motorways and metropolitan councils such as Waverley and Manly. These wins are expected to contribute more significantly in the second half of 2025 and beyond.

The company also maintained a disciplined approach to capital allocation, with net debt reducing slightly to $105 million and gearing improving to 0.7 times adjusted EBITDA, well within its target range. Capital expenditure increased modestly as oOh!media launched over 300 new digital panels, reinforcing its commitment to digital innovation in premium locations.

New Zealand Restructuring and Leadership Change

Following the loss of the Auckland Transport contract, oOh!media announced a restructuring of its New Zealand operations, which will incur a one-off charge of approximately $1 million in the second half of 2025. The restructuring aims to deliver annualised cost savings of $6 to $7 million starting in 2026, reflecting a strategic pivot to improve profitability in the region.

In a significant leadership development, the Board appointed James Taylor as the new Chief Executive Officer, with an expected start date in late 2025 or early 2026. This appointment signals a new chapter for the company as it navigates evolving market dynamics and seeks to capitalise on growth opportunities.

Dividend and Outlook

The Board declared a fully franked interim dividend of 2.25 cents per share, representing a 29% increase over the prior year’s interim dividend and reflecting confidence in the company’s underlying earnings power. The dividend payout ratio stands at 46% of adjusted underlying net profit after tax.

While the impairment charge weighs on statutory results, oOh!media’s diversified portfolio, strong contract pipeline, and disciplined financial management position it well for sustained growth. The company’s focus on digital transformation and strategic contract wins in Australia are expected to drive momentum in the second half of 2025.