oOh!media (OML) H2 2024 earnings summary

Executive summary

• Out-of-home advertising sector outperformed traditional media, capturing over 15% of total ad spend and projected 8% growth in 2024, with revenue for CY2024 at $636M and momentum accelerating into Q1 2025.

• Improved second-half performance in 2024 was driven by decisive actions to grow revenue, optimize costs, and maintain market leadership in ANZ OOH.

• Adjusted underlying EBITDA reached $129M, with gross margin improving to 44.7% due to contract discipline.

• Net profit after tax increased to $37M, up from the prior year, supported by cost control and a $15M net cost reduction program for 2025.

• New retail media contracts and digital innovation are energizing go-to-market and supporting sector leadership.

Financial highlights

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

• Adjusted underlying EBITDA margin was 20.3%, slightly down year-over-year.

• Statutory NPAT increased 6% to $37M; adjusted NPATA rose 2.3% to $56.3M.

• Operating cash flow conversion was 37.1%, impacted by working capital and tax payments; free cash flow declined by AUD 38.2M.

• Gearing at 0.8x adjusted EBITDA, with $168M undrawn debt and $150M in interest rate hedges to October 2025.

Outlook and guidance

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

• CY2025 sector growth forecasted at mid to high single digits; adjusted gross margin expected to remain stable.

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

• Opex base targeted at $150–155M for CY2025, with $15M net cost savings.

• Gearing expected to remain below 1x adjusted EBITDA.