Ooh Media Ltd · ASX:OML
Ooh Media — H1 2024 Earnings Presentation
37 slides from Ooh Media's earnings presentation, Aug 19, 2024
Slide 1: Half Year Results Presentation
oOh!media Limited ABN 69 602 195 380 19 August 2024 ASX Release HALF YEAR RESULTS PRESENTATION oOh!media Limited (ASX:OML) (oOh!) attaches its 2024 Half Year presentation. This announcement has been authorised for release to the ASX by the Chief Executive Officer. *** Investor Relations contact: Med
Slide 2: Interim 2024 Results
Interim 2024 Results 19 August 2024
Slide 3: Artwork by Lua Pellegrini
Artwork by Lua Pellegrini
Slide 4: Agenda
Agenda Presenters: Cathy O’Connor (CEO) and Chris Roberts (CFO) • Reasons to invest in oOh! • 1H 2024 Results Summary • Financials & Commercial Contracts • Strategy update • Outlook and wrap up • Questions 3
Slide 5: Reasons to invest in oOh!
Reasons to invest in oOh! Structural tailwinds continue driving strong growth in ANZ’s #1 OOH company, reaching Out of Home (OOH) advertising, capturing record 15% over 98% of metropolitan share of agency media 1 Australians weekly3 16.0% 15.0% % OOH of Total Media (SMI) 15.0% 14.0% 13.7% 13.9% ANZ’
Slide 6: oOh! is confident in its growth prospects
oOh! is confident in its growth prospects Structural OOH tailwinds Significant pipeline for expected to continue future revenue growth • Audience measurement • Expected new contract and targeting through wins of over $38M MOVE 2.0 projected incremental • Growing populations and annualised revenue fr
Slide 7: 1H 2024 Results Summary
1H 2024 Results Summary unmissable
Slide 8: 1H 2024 Summary
1H 2024 Summary Total revenue declined by 2.8% on pcp compared to Expected new contract wins OOH market growth1 of to deliver over $38M in Ongoing disciplined projected annualised 7.9%, driven by change in contract renewal and revenue upside from 2025 contracts and share loss tight expense managemen
Slide 9: 1H 2024 Key Financials
1H 2024 Key Financials Disciplined investment and cost control help to offset revenue pressures KEY PERFORMANCE REPORTED METRICS VS PCP1 METRICS VS PCP1 Revenue Gross Profit (3%) (1%) $288.3M $194.3M Adjusted Gross Underlying Opex Margin2 1.8 ppts 3% $70.2M 43.1% Adjusted EBITDA Underlying EBITDA2 (
Slide 10: Underlying revenue growth below expectations
Underlying revenue growth below expectations • oOh! deliberately exited and renegotiated contracts adversely impacting revenues, to target margin and profitability growth Excluding exit of Vicinity contract and a non-media contract reset, revenue growth was 3% • Revenue was also impacted by share lo
Slide 11: Taking decisive action to improve revenue performance
Taking decisive action to improve revenue performance As the market leader, oOh! is taking decisive action to address revenue performance and regain share in 2H and beyond 1. Accelerating Retail Ensure oOh! maintains Retail • Business accelerating the digitisation of assets across its entire portfol
Slide 12: Financials & Commercial Contracts
Financials & Commercial Contracts 11
Slide 13: Key Financial Highlights
Key Financial Highlights Disciplined cost control help to offset revenue pressures 124.3 18.7% 123.6 44.8% 122.6 reooh 16.7% 16.8% 1.0% 43.1% 13.2% 42.5% 106.9 41.4% 2.8% 1.4% 1H 2021 1H 2022 1H 2023 1H 2024 1H 2021 1H 2022 1H 2023 1H 2024 1H 2023 1H 2024 1H 2021 1H 2022 1H 2023 1H 2024 Adjusted Gro
Slide 14: Margin improvement in 1H
Margin improvement in 1H • Gross margin improved 1.8 ppts to 43.1% driven by the exit of lower margin contracts ADJUSTED P&L1 1H 2024 ($M) 1H 2023($M) Change ($M) • Operating expenditure before one-off items increased by $2.7M or Revenue 288.3 296.6 (8.3) 4%. Underlying cost growth related mainly to
Slide 15: Increase in working capital and growth capex – impacting cash flow
Increase in working capital and growth capex – impacting cash flow • A 42% increase in capex as the business rolls out assets for new and Cash flows1 1H 2024 ($M) 1H 2023 ($M) Change ($M) renewed contracts Adjusted EBITDA 45.5 49.6 (4.1) • Free cash flow decline of $26.9M largely attributable to a s
Slide 16: Contract expiry risk reduced with 1H contract renewal success
Contract expiry risk reduced with 1H contract renewal success Adjusted Revenue1 attached to contracts expiring in CY2024 160.0 25.0% • oOh! has renewed 15% of adjusted 22.6% revenue1 attached to contracts expiring in 140.0 CY24, resulting in a 28% reduction of 19.3% revenue at risk attached to large
Slide 17: Additional $38M of projected annualised incremental revenue
Additional $38M of projected annualised incremental revenue, representing an anticipated >80% win rate Incremental revenue from new contracts will offset Vicinity loss by more than twofold1,2 $13M to $33M More than $38M of projected incremental annualised revenue opportunity from 2025+, in addition
Slide 18: Strategy update
Strategy update 17
Slide 19: Out of Home projected to grow over 6% CAGR to $1.9B in 2026
Out of Home projected to grow over 6% CAGR to $1.9B in 2026 Underpinned by traditional media share shifting to Digital and Out of Home High case 12.8% CAGR 2023-26 Base case OOH spend in ANZ1 6.1% CAGR 2023-26 2.5 COVID-19 affected Out of Home growth will continue to capture years the spend shift fr
Slide 20: Strategic one-off investment of $3.4M to accelerate growth ambitions
Strategic one-off investment of $3.4M to leverage expertise and capabilities to accelerate growth ambitions Increase ambition Create pricing logic and Underlying opex and execution speed tools to be launched in growth to remain at for reooh market in 2024 no more than CPI Validation of Retail Media
Slide 21: Increased conviction around oOh!'s Retail Media growth strategy, reooh
Increased conviction around oOh!'s Retail Media growth strategy, reooh • Advanced negotiations with multiple retailers continuing, leading to increased conviction in the reooh model and how we are addressing retailers’ needs • Anticipate announcements of contract wins in 2H 20 .
Slide 22: Outlook
Outlook LI ooh! unmissable
Slide 23: Outlook
Outlook • Out of Home is expected to continue taking revenue share from other media sectors, and expecting mid to high single digit growth for CY2024 • oOh!’s Q3 media revenue pacing1 up 2% on the pcp impacted by a weak July and returning to growth in August, strengthening further in September, part
Slide 24: Wrap Up
Wrap Up Further contract wins Strong Out of Home creating strong future fundamentals continue pipeline for revenue • Record 15% share of growth agency media spend in 1H • Anticipated contract wins 2024 of over $38M projected • OMA reporting growth of 8% incremental annualised for 1H 2024 revenue fro
Slide 25: Questions
Questions LJ O ooh! unmissable
Slide 26: Appendix
Appendix 25
Slide 27: Advertising category performance - SMI
Advertising category performance - SMI1 1H 2024 SMI category share for Out of Home SMI Agency Spend 1H 2024 Pacing vs 1H 2023 9% -40% -20% 0% 20% 40% 60% 80% 100% Retail 7% Food/Produce/Dairy Retail Travel Automotive Brand 6% Restaurants 41% Insurance Automotive Brand 6% Government Banking Alcoholic
Slide 28: oOh! revenue growth lower than OMA growth
oOh! revenue growth lower than OMA growth, impacted by exit of contracts and share loss Notes • Exit of Vicinity contract refers to the non-renewal of the Vicinity contract, the impacted Retail and to a lesser extent, Road • Renegotiated non-media revenue contract refers to the reduction in contract
Slide 29: Reported profit & loss
Reported profit & loss Net Profit After Tax in line with the pcp REPORTED P&L 1H 2024($M) 1H 2023 ($M) Change ($M) Revenue 288.3 296.6 (8.3) Cost of media sites and production (94.0) (100.5) 6.4 Gross profit 194.3 196.1 (1.8) Gross profit margin (%) 67.4% 66.1% 1.3 ppts1 Total operating expenditure2
Slide 30: Balance sheet
Balance sheet Financial position remains strong with gearing of 0.97X, below management’s target of 1.0X 30 Jun 2024 31 Dec 2023 Change Balance sheet1 ($M) ($M) ($M) • Balance sheet strength with gearing at 0.97x Cash and cash equivalents 31.8 31.6 0.1 Trade and other receivables 110.6 117.2 (6.6) •
Slide 31: Adjusted COGS bridge
Adjusted COGS bridge Notes • Fixed rent increases - existing includes inflationary increases and increases relating to digitization of existing portfolio • Key contract changes/exit refers to both savings from exiting lower margin contracts, as well as changes to existing contract terms, mainly betw
Slide 32: Adjusted opex bridge
Adjusted opex bridge Notes • reooh headcount refers to the investment in internal salary costs to grow the reooh business • One-off items include a duplication of data costs in 1H23 as the business transitioned data providers, a release of accruals relating to variable compensation costs and a gain/
Slide 33: Reported NPAT to Adjusted NPAT reconciliation
Reported NPAT to Adjusted NPAT reconciliation H1 2024 H1 2023 Change ($M) ($M) ($M) Reported NPAT 5.8 6.4 (0.6) AASB 16 income and expense items: Lease modification income (0.0) (0.0) 0.0 Fixed lease obligations (75.6) (78.7) 3.2 Depreciation 61.1 71.5 (10.5) Interest 19.4 17.5 2.0 Tax effect of AAS
Slide 34: Adjusted vs reported results reconciliation
Adjusted vs reported results reconciliation 1H 2024 1H 2024 Change 1 P&L ADJUSTED ($M) REPORTED ($M) ($m) EBITDA increase of $76M offset by a Depreciation and Amortisation increase of Revenue 288.3 288.3 - $61M and an Interest expense increase of $19M. Resulting NPAT before Cost of media sites and p
Slide 35: Financial information notice and glossary
Financial information notice Glossary EBIT Earnings before interest and tax oOh!’s Financial Statements for the interim period Earnings before interest, tax, depreciation ended 30 June 2024 presented in accordance with EBITDA and amortisation Australian Accounting Standards. NPAT Net profit after ta
Slide 36: Financial information notice
Financial information notice Financial information notice This document is a presentation of general background information about the activities of Forward looking statements are provided as a general guide only, and should not be relied on as oOh!media Limited (oOh!media or oOh!) current at the dat
Slide 37: Office locations
Sydney T +61 (2) 9927 5555 Level 2, 73 Miller Street North Sydney NSW 2060 Melbourne T +61 (3) 8598 0700 Level 3, 101 Moray Street South Melbourne VIC 3205 Brisbane T +61 (7)3620 2900 2/89 McLachlan Street Fortitude Valley QLD 4006 Adelaide T +61(8)8367 3222 Level 4, 149 Flinders Street Adelaide SA