Half year revenue at oOh! tumbles by a third

Revenue at outdoor giant oOh! Media plunged by a third in the first half, as clients pulled in their marketing spend while commuters stayed at home, resulting in a $27.5m net loss.

The company – which owns wide format printer Cactus Imaging – saw its EBITDA drop by more than 80 per cent, to $10.8m from $56m in the same period last year. Sales dropped to $205m, down from $305m in the first half of last year.

Restrictions on movement in the Covid period in April-June saw oOh! Media having to discount its prices heavily, reportedly by 30 per cent across the board, and up to 90 per cent in some cases.

The oOh! Media share price has plunged by two thirds since the start of the year, from $3 to around $1, although it rose by 10 per cent on the results announcement.

Its New Zealand business has bounced back to 80 per cent of pre-Covid levels since lockdown was eased, and the company says its Australian revenues are tracking back up.

Brendan Cook, CEO at oOh! Media said: “We have maintained market share while strengthening our balance sheet, having responded quickly to the challenges presented by Covid-19. While revenue and profits predictably declined, our decisive early action to raise additional equity, reduce costs and capital expenditure and manage cash flows has reduced debt by 67 per cent, and positioned the company well for the future.”