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: | Media contact: |
Martin Cole | Tim Addington |
0403 332 977 | 0405 904 287 |
investors@oohmedia.com.au | tim.addington@tagpr.com.au |
About oOh!media
oOh!media is a leading Out of Home media company that is enhancing public spaces through the creation of engaging environments that help advertisers, landlords, leaseholders, community organisations, local councils and governments reach large and diverse public audiences.
The Company's extensive network of more than 35,000 digital and static asset locations includes roadsides, retail centres, airports, train stations, bus stops, office towers and universities.
Listed on the ASX, oOh! employs around 800 people across Australia and New Zealand and had revenues of $634 million in 2023. It also owns the Cactus printing business.
The Company invests heavily in technology and is pioneering the use of sophisticated data techniques that enable clients to maximise their media spend through unrivalled and accurate audience targeting. Find out more at oohmedia.com.au
oOh!media Limited - Level 2, 73 Miller Street, North Sydney, NSW Australia 2060
Interim
2024 Results
19 August 2024
Artwork by Lua Pellegrini
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
Reasons to invest in oOh!
Structural tailwinds continue driving strong growth in Out of Home (OOH) advertising, capturing record 15% share of agency media 1
16.0% | 15.0% |
(SMI) | 15.0% | 13.9% | ||||||||||
14.0% | 13.7% | |||||||||||
Media | ||||||||||||
13.1% | ||||||||||||
13.0% | 12.3% | |||||||||||
Total | 12.0% | 11.0% | 11.4% 11.2% 11.7% | |||||||||
of | 11.0% | 10.3% | ||||||||||
OOH | 10.0% | 9.3% | ||||||||||
% | 9.0% | |||||||||||
8.0% | ||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
Jun CYTD | Linear (Jun CYTD) | |||||||||||
Fastest growing media sector2, outpacing
Television, Digital, and Radio
ANZ's #1 OOH company, reaching
over 98% of metropolitan
Australians weekly3
ANZ's largest and most diverse network, with over 35,000 assets
Experienced
management team, committed to cost efficiency and contract discipline
- Per the Standard Media Index (SMI), which reports on agency media spend, analysing total OOH sector spend as a % of total agency media spend
- Per the Standard Media Index (SMI), analysing H1 2024 spend compared to H1 2023. OOH sector spend grew 6% on the pcp compared to 4% for Digital and Cinema, 10% decline for TV and 4% decline for Radio
43. Per MOVE 1.5, 2024, weekly reach of oOh! MOVE measured assets, 5 capital cities
oOh! is confident in its growth prospects
Structural OOH tailwinds expected to continue
- Audience measurement and targeting through MOVE 2.0
- Growing populations and audiences, further investment in new digital assets
- Continuing innovation in digital campaign creative and content
Taking decisive action to improve revenue performance
- Accelerating investment in Retail digitisation
- Delivering new contract wins and continuing digitisation of Street Furniture
- Enhancing go to market capability (pricing and yield optimisation)
Significant pipeline for future revenue growth
- Expected new contract wins of over $38M projected incremental annualised revenue from 2025+, in addition to the $30M for Woollahra Council and Sydney Metro previously announced
- Projected 80%+ win rate for contracts in pipeline
Expanding the ambition for capturing retail media market through reooh
- Strategic one-off investment to accelerate growth ambitions
5
1H 2024 Results Summary
6
1H 2024 Summary
Ongoing disciplined contract renewal and tight expense
management delivers adjusted gross profit and underlying EBITDA margin expansion
Total revenue declined by
2.8% on pcp compared to
OOH market growth1 of 7.9%, driven by change in contracts and share loss
Taking decisive action to
improve revenue
performance. Q3 media
revenue pacing up 2% and
a strong outlook for
September and beyond
Expected new contract wins
to deliver over $38M in projected annualised revenue upside from 2025
Accelerating growth ambitions with one-off investments in go-to-
market capabilities
and reooh
7 | 1. Per the Outdoor Media Association (OMA) |
1H 2024 Key Financials
Disciplined investment and cost control help to offset revenue pressures
KEY PERFORMANCE | REPORTED | ||||
METRICS VS PCP1 | METRICS VS PCP1 | ||||
Revenue | (3%) | Gross Profit | (1%) | ||
$288.3M | $194.3M | ||||
Adjusted Gross | Underlying Opex | ||||
Margin2 | 1.8 ppts | 3% | |||
$70.2M | |||||
43.1% | |||||
Adjusted | EBITDA | ||||
Underlying EBITDA2 | (2%) | (6%) | |||
$121.1M | |||||
$48.6M | |||||
Adjusted | NPAT | ||||
Underlying NPAT2 | (11%) | (10%) | |||
$5.8M | |||||
$18.2M | |||||
Adjusted | |||||
Underlying NPAT | (7%) | EPS | (5%) | ||
per share | 1.1 cents | ||||
3.4 cents | |||||
Gearing3 | Dividend | ||||
Up 0.3X | 1.75 cents interim | - | |||
0.97X | |||||
fully franked | |||||
1. | Comparisons are against the prior corresponding period of 1H 2023 | ||||
2. | Adjusted measures have been provided for understanding underlying | ||||
earnings and cash flow expectations. These measures reflect adjustments to | |||||
statutory financial performance measures for the impact of AASB16 and | |||||
non-operating expenses. Detailed further on slides 33 | |||||
3. | Gearing is calculated as Net Debt at balance date divided by Adjusted | ||||
8 | Underlying EBITDA for the preceding 12 months. The change is calculated | ||||
from balance date as at 31 December 2023 |
Underlying revenue growth below expectations
Excluding exit of Vicinity contract and a non-media contract reset, revenue
growth was 3%
1H 2024 | 1H 2023 | Change | Q1 | Q2 | ||
Formats1 | Change | Change | ||||
($M) | ($M) | % vs pcp | ||||
% vs pcp | % vs pcp | |||||
Road | 100.8 | 103.4 | (3%) | 8% | (12%) | |
Street & Rail | 91.0 | 93.5 | (3%) | (2%) | (3%) | |
Retail | 58.3 | 65.0 | (10%) | (5%) | (15%) | |
Fly | 22.2 | 21.0 | 6% | (4%) | 16% | |
City & Youth | 9.7 | 8.3 | 16% | (11%) | 44% | |
Other | 6.4 | 5.2 | 22% | 34% | 12% | |
Total Revenue | 288.3 | 296.6 | (3%) | 1% | (6%) |
Differences in balances due to rounding
1. | Format construct: Street & Rail includes Street Furniture in Australia and New Zealand, and Rail in Australia. Retail includes Australia and | |
New Zealand. City & Youth, formerly known as Locate, predominantly consists of Office tower advertising. Other consists of Cactus, Poly | ||
and reooh | ||
2. | Market share calculation = [oOh! reported revenues - Other] / [(OMA (Aus) + OMAA (NZ) gross revenues) excluding oOh!'s contribution + | |
oOh! reported revenues - Other]. The prior comparative period share dropped from 40% to 39% due to restating of historic values for new | ||
9 | OMA members | |
3. | Q3 media revenue road pacing up 2% as of 12 August |
- oOh! deliberately exited and renegotiated contracts adversely impacting revenues, to target margin and profitability growth
- Revenue was also impacted by share loss, with management committed to taking actions to address the drivers
-
Revenue declined 3% compared to the OMA's OOH growth reported of
8%, with a reconciliation provided on slide 27 - Road declined by 3%, after a strong 12% growth in 1H 2023, particularly in Q2, and also partially due to the exit of the Vicinity contract. Road Q3 media revenue pacing currently up 2%3 and strengthening
- Street & Rail revenue was down 3%, partly attributed to a decline in classic Street Furniture revenue offsetting strong digital growth. Revenue also partly impacted by the decline in non-mediarevenue from renegotiating cleaning and maintenance contract in return for lower fixed rent in 1H 2024. Excluding this, media revenue grew 3% on the pcp.
- Retail was down 10%, due largely to the exit of the Vicinity contract. Excluding Vicinity assets, revenue grew 8% on the pcp
- Fly grew 6% and City & Youth grew by 16% driven by the return of audiences to CBDs
- Programmatic revenue grew 183% on the pcp
- oOh!'s share of the ANZ Out of Home market2 was 36% for 1H 2024 vs 39% in the pcp. The exit of Vicinity contributed to 1.8 ppts of the decline.