oOh!media (OML) H2 2024 earnings summary

Executive summary

• Out-of-home advertising sector continues to outperform traditional media, with structural growth, increasing ad market share over 15%, and sector revenue projected to grow 8% in 2025.

• Revenue for CY2024 was $635.6M, flat year-over-year, with momentum building in H2 and accelerating into Q1 2025.

• Net profit after tax increased to $36.6M, up $2M from the prior year, with EPS up 9%.

• Strong contract discipline and cost control measures, including a $15M net cost reduction program for CY2025.

• Market leadership supported by focused execution, energizing go-to-market, unlocking network potential, and leading in retail media.

Financial highlights

• Gross margin improved to 44.7%, up 0.4 ppts year-over-year, with gross profit at $284.4M.

• Adjusted underlying EBITDA margin was 20.3%, consistent with previous years.

• Statutory NPAT increased 6% and adjusted NPATA rose 2.3% to $56.3M.

• Operating cash flow declined to $46.5M, impacted by working capital and tax payments; free cash flow fell by AUD 38.2M.

• Gearing increased to 0.8x EBITDA, remaining below the 1.0x target.

Outlook and guidance

• Q1 2025 revenue is pacing up 14% year-over-year, with broad-based growth across categories and geographies.

• Adjusted gross margin for 2025 expected to remain stable; restructuring to deliver AUD 15M in net cost savings.

• CapEx for 2025 projected at AUD 45–55M, focused on new advertising assets.

• Opex base targeted at AUD 150–155M for CY2025.

• Gearing expected to remain below 1x adjusted EBITDA.