Outdoor media specialist oOh!media has issued a profit warning to investors amid a weaker end to the year, pointing to subdued advertising market conditions and the loss of a significant New Zealand contract.
The company now forecasts December quarter revenue to be slightly below the same three months last year, with calendar 2025 revenue now expected to be between $689-$694 million.
oOh! delivered September quarter revenue growth of seven per cent, slightly ahead of the five per cent indicated at its half year results announced in August.
However, the company noted subdued market conditions early in the fourth quarter are expected to result in revenues below those of the same period last year.
The slowdown is being attributed to a decline in Australian advertising activity in October, which is said to have broadly affected the out-of-home advertising sector.
The non-renewal of oOh!’s Auckland Transport contract is said to have also significantly impacted revenues generated in NZ.
“After successive quarters of strong growth in out-of-home, activity in the Australian advertising market softened significantly in October,” the company said in a trading update released to the ASX.
“In variable market conditions, oOh! has remained focused on disciplined cost management and execution and expects its operating costs to remain between $159 million to $161 million, including New Zealand restructuring costs.”
Capital expenditure is expected to be at the lower end of the $53 million to $63 million range, while group adjusted EBITDA is expected to be between $139 million and $142 million.
However, improved pacing in November and December has continued into January.
oOh! expects to benefit from further asset rollouts.