oOh!media Reports Half Year revenue Growth as Cost pressures Weigh on Earning

Highlights:

• The outdoor advertising sector continued gaining market share, reaching a record 16.9% of agency media spending over the 12 months to June 2026.
• Revenue increased modestly, while higher fixed rental expenses and softer market conditions affected underlying earnings.
• Management reported stronger third-quarter booking momentum and expects cost-saving initiatives to support performance in the second half.

Revenue Rises Despite Challenging Market Conditions

oOh!media Limited (ASX: OML) released its half-year results presentation on 17 August 2026, reporting revenue of AU$340.9 million for the six months ended 30 June 2026, up from AU$336.2 million in the prior corresponding period. The 1.4% increase reflected growth in Australia, which partly offset weaker New Zealand performance following the loss of the Auckland Transport contract.

The company said subdued billboard demand, weaker consumer sentiment, three Reserve Bank of Australia rate increases and disruption to airline passenger traffic associated with the Middle East conflict affected trading during the period.

Operating Earnings Face Margin Pressure

Adjusted underlying EBITDA declined 23% to AU$48.1 million, compared with AU$62.2 million a year earlier. Adjusted underlying net profit after tax fell 42% to AU$15.4 million, while the adjusted underlying EBITDA margin decreased from 18.5% to 14.1%. Higher fixed rental commitments associated with new advertising contracts and digitisation investments contributed to the margin decline. Adjusted gross margin contracted by 4.3 percentage points to 37.5%.

Reported net profit after tax was a loss of AU$1.2 million, compared with a loss of AU$11.3 million in the previous corresponding period. The earlier period included a AU$30 million non-cash impairment relating to the New Zealand business.

Australian Operations Support Growth

Australian revenue increased 6% during the half, supported by Street and Rail advertising, retail and airport formats. Street and Rail revenue rose 3% to AU$111.6 million, while airport revenue increased 5% to AU$33.6 million. Office and Study revenue grew 7% to AU$10 million.

Billboard revenue declined 2% to AU$117.5 million amid softer advertiser demand. New Zealand revenue was significantly affected by the Auckland Transport contract exit.

The company also reported that its new MOVE audience measurement system went live in March 2026. Operational initiatives delivered more than AU$10 million in annualised savings, including AU$2 million from exiting the reo business.

Outlook and Financial Position

Management reported Australian third-quarter media revenue pacing at 14% growth, with group revenue pacing at 9%. More than 100% of the previous year's Australian third-quarter closing revenue had already been booked, according to the presentation.

Cash and cash equivalents stood at AU$34.5 million at 30 June 2026, while gearing was 1.0 times adjusted underlying EBITDA. The company declared a fully franked interim dividend of 2 cents per share, payable on 17 September 2026.

Overall, oOh!media's results showed continued revenue growth alongside near-term profitability pressures. Its outlook depends on sustained booking momentum, improved operating leverage and the benefits of cost-control measures.

Note- All data presented is based on information available at the time of writing.

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