oOh!media reported strong advertising revenue growth in the March quarter and sees more upside ahead.
The outdoor media specialist posted total revenue growth of 13%, with Australian media revenue was up 16%.
The company said the June quarter is expected to be similar, with an improved share of the advertising market.
“We expect oOh! to experience further tailwinds from future interest rate cuts and further market growth post Labor winning a clear majority in the recent federal election,” CEO Cathy O'Connor said in a trading update delivered to the AGM.
“In the absence of any significant destabilising economic trends in the second half, OOH as a category is expected to grow in high single to double digit percentage points in 2025.”
oOh!media expects to deliver net cost savings of $15 million.
oOh!media posted flat revenue for the year to December. Revenue was up 0.3% to $635.63 million and profit was 5.7% higher at $36.577 million.
“The company now has real momentum, and a depth and breadth of new talent, to chart the course for continued growth,” O’Connor, who is leaving the company, said.
“Having discussed with the board the next multi-year phase of execution ahead of oOh!, we have agreed that the company is now ready for new leadership.
“Leading oOh! for the past four years has been one of the most rewarding periods of my career, and I am incredibly proud of the team’s achievements, including our success in attracting new asset contracts and our industry-leading margins delivered in an inflationary environment.
“oOh! has developed one of the strongest teams in Australian media, including a leadership group that is among the industry’s most experienced.
"I strongly believe in the future growth and growing prominence of the Out of Home industry and that oOh! has the right strategy to lead this evolution and generate long-term value for our customers, our people and our shareholders, and I remain absolutely focused on the execution of oOh!’s strategy to continue to grow our market share in an improving OOH market."
A slide from the AGM presentation:
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