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"Significant revenue rebound in Q4" says oOh!media

Outdoor advertiser oOh!media reports a strong recovery in key Out of Home audiences post COVID-19 lockdown. A significant revenue rebound in the 4th quarter means FY20 revenues are now anticipated to be between $420m-$430m, the company said.

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  (photo: Cactus Imaging, an oOh!media company)
brendon cook
 'Rebounding strongly': Brendon Cook,
                 CEO oOh!media

“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.”

Cook said the company was “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.”

Strong recovery in audiences leading to revenue improvements

Out of Home audiences are continuing to recover strongly in the Australian Road, Retail and Street Furniture formats following the easing of people movement lockdowns in May 2020 (excluding Victoria), November 2020 in Victoria, and New Zealand intermittently until early October 2020, oOh!media told the ASX. 

“As anticipated, the Airport, Rail and Office audience environments continue to be impacted in Q4. In Australia, Road and Retail Out of Home audience volumes were tracking in late November at 87% of their 2019 levels, up from a low of approximately 50% in mid-April 2020 vs the prior corresponding period (pcp). New Zealand is now at or above FY19 audience volumes. Over this period SMI reported that total Australian advertising market spend improved from a decline of 44% in May to a 5% decline in October versus the pcp, and November and December are continuing to demonstrate this rebound trend.”

The company expects a full year revenue range of between $420 million to $430 million, depending on how much volume of revenue oOh! continues to write into the last two weeks of December.

 JobKeeper eligibility

oOh! is eligible for continued support under the extended JobKeeper program from 28 September 2020 to 3 January 2020. The Company expects to receive approximately $4 million in JobKeeper payments to partially offset employee costs for this period. 

Strong financial position maintained – debt facilities refinance

 The Company expects net debt at 31 December 2020 to be between $120m and $130m. The Company has signed a facility agreement to refinance its debt facilities and continues to operate within its covenants. The terms include a three year facility of $350m until December 2023.

“As advised at the equity raising in March 2020, the Board has temporarily suspended dividends,” oOh!media said. “The Board will revisit this decision in future periods based on the prevailing market conditions and with the consent of the Company’s lenders.”

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oOh! employs 800 people across Australia and New Zealand and had revenue of $649 million in 2019.