oOh!media Limited (ASX:OML) Reports FY24 Trading Update
Revenue Growth and Financial Outlook
oOh!media Limited (ASX:OML) has reported a 2% revenue growth in Q3 compared to the prior corresponding period. For Q4, the company anticipates a revenue increase between 3% to 6% year-on-year, indicating a shift from earlier predictions due to a slowdown in short-term booking activity. The company’s total revenues for CY24 are projected between $633 million and $638 million, slightly down from $634 million in CY23.
Cost Reduction Initiatives
In light of challenging market conditions, oOh!media is taking proactive measures by restructuring its operations to achieve significant cost savings. The company aims to reduce its cost base by over $15 million, focusing on operating costs and non-rent goods lines. Following these changes, the operating cost base is expected to range between $150 million and $155 million for CY25.
Executive Comments
Cathy O’Connor, Chief Executive Officer, stated, “In a challenging period for the wider media and advertising market, oOh!media is taking decisive action to ensure that we can operate sustainably through the cycle.” O’Connor is confident in the long-term prospects of the Out Of Home (OOH) category, which continues to grow its market share, reaching 15.1% at the end of October 2024.
Future Reporting
oOh!media will release its CY24 financial results on 24 February 2025, which will include updates on its ongoing business restructure.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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