oOh!media (OML) H1 2025 earnings summary

Executive summary

• Out-of-home advertising reached a record 16.5% share of agency media spend, with leadership in Australia and New Zealand and record underlying results in 1H 2025.

• Revenue for the half year ended 30 June 2025 rose 17% year-over-year to $336.2 million, driven by strong performance in Road, Street & Rail, and Fly formats.

• Adjusted underlying EBITDA increased 27% to $62.2 million and adjusted underlying NPAT rose 46% to $26.5 million.

• 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.

• Operational cost savings were reinvested into growth initiatives, supporting improved client engagement and sales conversion.

Financial highlights

• Group revenue grew 17% year-over-year to $336.2 million, with 80% of growth organic and 20% from new contracts.

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

• Adjusted underlying EBITDA margin improved to 18.5% (up from 17.0% in 1H24).

• Interim fully franked 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 at $105.0 million and strong operating cash flow conversion at 77%.

Outlook and guidance

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

• Full-year adjusted gross margin expected at circa 44.0%, with second half margins improving over the first half.

• Operating costs for 2025 forecast at $159 million–$161 million; capex expected between $53 million and $63 million.

• Gearing to remain below 1x adjusted underlying EBITDA; out-of-home sector expected to continue mid to high single-digit growth in H2 2025.

• New Zealand cost base reset to deliver $6–$7 million annualised savings from Q4.