oOh!media (OML) H2 2024 earnings summary

Executive summary

• Revenue for CY2024 was $635.6 million, flat year-over-year, with H2 momentum offsetting a weak H1 and Q4 revenue up 5% sequentially from Q3.

• Out-of-home advertising sector outperformed traditional media, with agency share at a record 15.3% and sector revenue projected to grow 8% in 2025.

• Statutory NPAT increased 6% to $36.6 million, and adjusted NPAT rose 2% to $56.3 million.

• Gross margin improved to 44.7%, up 0.4 points year-over-year, driven by contract discipline and strategic exits.

• Cost discipline and a $15 million net cost reduction program for CY2025 support profitable growth.

Financial highlights

• Gross profit rose 1.3% to $284.4 million, with gross margin at 44.7%.

• Adjusted underlying EBITDA margin was 20.3%, with adjusted EBITDA at $128.9 million.

• Operating cash flow conversion was 37.1%, impacted by working capital and tax payments.

• Free cash flow per share dropped to 1.5c, mainly due to working capital timing and higher capex.

• Gearing at 0.8x adjusted underlying EBITDA, with net debt at $108.3 million.

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 at least $15 million in net cost savings.

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

• Operating cost base for 2025 targeted at $150–155 million.

• Gearing expected to remain below 1x adjusted underlying EBITDA.