oOh!media (OML) H1 2025 earnings summary

Executive summary

• Revenue for 1H25 rose 17% year-over-year to $336.2 million, driven by strong performance in Road, Street Furniture & Rail, and Fly segments, with adjusted underlying EBITDA up 27% to $62.2 million and adjusted underlying NPAT up 46% to $26.5 million.

• Out-of-home advertising reached a record 16.5% share of agency media spend, maintaining leadership in Australia and New Zealand.

• Statutory net loss after tax was $11.3 million, primarily due to a $30 million non-cash impairment related to the Auckland Transport contract in New Zealand.

• Interim dividend increased 29% to 2.25 cents per share, fully franked, with a payout ratio of 46%.

• James Taylor appointed as incoming CEO, expected to commence late 2025 or early 2026.

Financial highlights

• Revenue increased 17% to $336.2 million; adjusted underlying EBITDA up 27% to $62.2 million; adjusted underlying NPAT up 46% to $26.5 million.

• Adjusted gross margin declined 1.3 percentage points year-over-year to 41.8%, reflecting higher fixed rent and channel mix.

• Statutory net loss after tax of $11.3 million, down from a $5.8 million profit in 1H24, due to impairment charges.

• Interim dividend of 2.25 cents per share declared, up 29% year-over-year, with a payout ratio of 46%.

• Gearing improved to 0.7x, with net debt reduced to $105.0 million and strong operating cash flow conversion at 77%.

Outlook and guidance

• Q3 media revenue pacing at 5%, with Australia at 6% and improvement in August and September after a soft July.

• Full-year adjusted gross margin expected at circa 44%, with second half margins improving over the first half.

• Operating costs for 2025 forecast at $159 million–$161 million, with $1 million in additional restructuring costs for New Zealand.

• CapEx for 2025 expected between $53 million and $63 million, mainly for new asset rollouts and renewals.

• Gearing to remain below 1x adjusted underlying EBITDA; Out-of-home sector expected to grow mid to high single digits in H2 2025.