oOh!media provides strong recovery in key OOH audiences post COVID-19 lockdown

oOh!media has reported a significant revenue rebound in the fourth quarter of this year as outdoor audiences return after COVID lockdowns .

In its recent business report, which includes an update on market and trading conditions, the company anticipates full year revenue of between $420m to $430m, depending on how much volume of revenue oOh! continues to write into the last two weeks of December.

The report confirmed that road and retail outdoor audience volumes in November were tracking at 87% of their 2019 levels - up from a low of approximately 50% in mid-April 2020.

The update also confirmed:

- Fixed rent expense savings of approximately $54m were contracted for FY20 as of 10 December 2020

- Operating cost savings (excluding JobKeeper) are in excess of $15m for FY20

- FY20 Capital Expenditure is anticipated to be below $20m

- Net Debt is anticipated to be between $120m and $130m at 31 December 2020

- A focus to maintain a strong financial position and refinancing of its debt facilities until 2023. 

oOh!’s strategy through the COVID-19 pandemic has been to responsibly manage its operations by focusing on costs and strengthening its balance sheet. Additionally, the company has refined its offer vis a vis the strength of its suburban and regional network and invested in key assets through the audience and advertising revenue challenges created by COVID-19.  This has positioned it to capitalise on the structural opportunities that Out of Home continues to benefit from as conditions improve.

“As the market leader in Out of Home across Australia and New Zealand,  oOh! is well-positioned to leverage the ongoing recovery in audience growth and advertiser sentiment which is becoming increasingly evident,” said oOh! CEO Brendon Cook.

“While Out of Home was clearly the most impacted media during the COVID-19 period from March to September, it is rebounding strongly.  Our strategy remains focused on capitalising on the positive key structural drivers of growth in Out of Home and leveraging our diverse product portfolio, backed by data, to deliver results for advertisers.

“We are proud of the role we have played during COVID-19, with our assets used to convey public health messaging across the country, helping keep Australians informed.

“I would also like to thank employees and other key stakeholders – our shareholders, banks, commercial partners and various governments – for their support during a very challenging Q2 and Q3,” he said.

oOh! is scheduled to release its results for the year ended 31 December 2020 on 22 February 2021.