oOh!media (ASX:OML) outlined a “two halves” performance for calendar year 2025, with management pointing to strong first-half growth followed by a softer second half as advertising budgets came under pressure and the company lapped the non-renewal of its Auckland Transport contract. Newly appointed CEO and managing director James Taylor, who joined in December, said he sees significant opportunities to improve execution speed, simplify delivery, and better leverage the company’s national network as the Out-of-Home (OOH) sector continues to gain share of agency media spend.
New CEO frames execution priorities and network opportunity
Taylor said the structural appeal of OOH drew him to the role, highlighting transparency and brand safety, the “physicality” of the medium, and the ability to tailor messaging by time of day, location, and context. He cited OOH’s record 16.5% share of agency media spend and described it as “part of the last growing physical media channel.”
To address this, Taylor pointed to a focus on unlocking more value from the network through “smarter pricing, improved mix, and performance,” alongside accelerating technology initiatives to integrate systems, improve real-time visibility, and increase automation. He said the existing technology program is “fully costed,” but he wants to move faster to provide utility for clients sooner.
MOVE 2.0 relaunch expected to lift measurement and support retail
A key near-term industry catalyst discussed on the call was the relaunch of the MOVE 2.0 audience measurement system (referred to as MOVE), which Taylor said is launching on March 9. He described it as a “step change” in measurability and insight, with more granularity and segmentation and deeper understanding of how location and time of day affect impact.
Management said the upgraded measurement framework should be particularly helpful for retail, where performance has been below expectations amid heightened competition, especially in FMCG. Taylor said the full reach and quality of the retail network is “not yet fully visible to advertisers” until MOVE is relaunched, and the company plans to provide a further update on its strategy for both retail and “reo” at the AGM in May.
CY2025 financial results: revenue up 9%, earnings growth and dividend increase
Chief financial officer Chris shared full-year results, reporting revenue of $691 million, up 9% year-on-year. He described a record first half with revenue growth of 17%, followed by a subdued second half where revenue grew 2%, reflecting pressure on advertising budgets, lower consumer spending, and the Auckland Transport non-renewal. He noted that in Australia, total agency media revenues declined 5% over the July-to-December period, according to the Standard Media Index.
Key profitability and cash flow points included:
- Gross margin declined 1.5 percentage points to 43.2%.
- Underlying operating expenditure rose 3%, in line with inflation, despite investment in reo and technology.
- Adjusted underlying EBITDA increased 8% to $139 million.
- Adjusted underlying NPAT grew 7% to $63 million.
- Dividend declared at $0.04 per share, fully franked, up 14% on the prior year.
The company also recorded impairment charges relating to its New Zealand business following the Auckland Transport contract loss. Chris said results were impacted by a $13 million impairment charge, and later referenced a $30 million non-cash New Zealand impairment charge announced at the interim results in August.
Operating cash flow improved to $82 million, up $35 million, with cash conversion to adjusted EBITDA rising to 59% from 37% in 2024. Capital expenditure increased to $54 million, consistent with guidance, and free cash flow rose to $28 million, up $20 million.
Performance by format and market share trends
Management detailed mixed performance across formats. Billboards grew 10%, which Chris attributed to demand for large-format, high-impact inventory and the strength of the national billboard portfolio. Street and rail revenue grew 11%, driven by “exceptional performance” from Sydney Metro and the Woollahra and Waverley council rollouts. Airport revenue rose 29%, supported by the recovery in travel, with revenues returning to pre-COVID levels.
Retail revenue fell 6% amid intensified competition, while Office and Study declined 7%. Chris said Office and Study remains a smaller part of the portfolio and that the company is focused on improving sales execution and monetizing the inclusion of those formats in MOVE for the first time from March.
On share, the company’s share of the Australia and New Zealand OOH market was 35% in 2025 versus 36% in 2024, with the decline largely attributed to the Auckland Transport loss. Chris said the Australian market share was held in the fourth quarter and that the company gained share in Australia in December and January 2026.
Outlook: Q1 pacing, flat OpEx guidance, and CapEx range
For the start of 2026, management said Australian first-quarter media revenue is pacing at +7%, while the group is pacing at +2%. Taylor said the company is confident in Q1 but cautioned it was too early to call Q2, noting that the second quarter last year was “historically high.”
Chris said the company expects an incremental $27 million contribution from new contracts into 2026. Management also discussed gross margin drivers, emphasizing the importance of total revenue and channel mix, and noted that Auckland Transport contributed around 70 basis points of gross margin that will not repeat in 2026.
Cost and capital expectations for 2026 included:
- Operating expenses expected to be broadly flat versus 2025, with continued cost discipline while retaining capacity to support execution priorities.
- CapEx expected in the range of $55 million to $65 million, largely directed toward new advertising assets and contingent on development approvals.
- Gearing expected to remain below 1x adjusted underlying EBITDA.
In Q&A, management addressed competitive dynamics, describing QMS as a “good, motivated competitor” and said recent sector activity was an endorsement of OOH’s attractiveness. Taylor reiterated the company’s view that independence and specialization are proven models for success in OOH globally.
Taylor said he will provide a fuller strategy update at the company’s AGM in May, and that oOh! plans to hold an Investor Day in the second half of 2026.
About oOh!media (ASX:OML)
oOh!media Limited operates as an out of home media company primarily in Australia and New Zealand. The company's portfolio includes large format classic and digital roadside screens; large and small format digital and classic signs located in retail precincts, such as shopping centers, as well as airport terminals, lounges, and in-flight; digital and classic street furniture signs; and digital and classic format advertising in public transport corridors, including rail, as well as high dwell time environments, such as universities and office buildings.
