OOH! MEDIA PROFITS RISE ON ROADS GROWTH

Outdoor giant, and Cactus Imaging owner, oOh! Media, lifted revenue 7 per cent to $633.9m in the year to December, buoyed by a vigorous outdoor media market in Australia.

The outdoor media sector's share of total media spend hit a record 14.5 per cent in the year, and out of home was growing by the fastest rate of all media, at 15 per cent. The company says outdoor will grow at between six percent and 12 per cent CAGR over the next three years, reaching between $1.9bn and $2.4bn.

Profit was up almost 10 per cent to $34.6m for the company. oOh! Says it remains "well positioned" to leverage sector structural growth and the company is focused on profitable market share.

"We delivered a solid result which highlights the financial discipline and operational improvements that are positioning oOh! to capitalise on the continued growth of Out of Home which remains the fastest growing media segment,” said CEO Cathy O’Connor.

“The group is developing innovative new revenue streams, while remaining disciplined on our approach to renewing existing contracts or winning new contracts.

"This is expected to strongly position oOh! to retain market leadership and build revenue in a rapidly evolving sector," she said.

The company expects out of home (OOH) media will continue its structural growth, taking revenue share from other media sectors. The company's revenue growth was led by a 14 per cent increase in oOh!’s road segment. 

oOh! forecasts mid to high single digit revenue growth for the industry in the 2024 calendar year. Major advertising agencies have also indicated similar growth expectations for OOH in 2024, the company says.