AUSTRALIA. Leading outdoor advertising and media company oOh!media has issued a trading update, highlighting a “significant revenue rebound” overall in Q4 (which ends on 31 December), but noting that airports continue to be sharply affected by the impact of COVID-19.
The company said: “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. 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 at 87% of their 2019 levels in late November, up from a low of about 50% in mid-April compared to the prior corresponding period (pcp). New Zealand is now at or above FY19 audience volumes.
Over this period SMI [which assesses spend from media buying groups – Ed] 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.
oOh!media Q3 revenues were around -43% behind the pcp on aggregate and have improved in Q4 to between -28% and -34% behind the strong Q4 delivered in 2019. In this period, Australian Road, Retail, Street Furniture and New Zealand revenues declined by -31% against a year earlier. Fly (including airports), Rail and Office declined by about -86% year-on-year.
Performance in Q4 is stronger with Australian Road, Retail, Street Furniture and New Zealand revenues expected to decline by between -11% and -18%. Fly, Rail and Office are anticipated to decline by around -84% year-on-year in Q4. The company said that “audiences in these formats are only expected to return meaningfully during CY21 despite improving performance from December 2020”.
The company expects a full year revenue range of between A$420 million to A$430 million, depending on how much volume of revenue oOh! continues to write into the last two weeks of December.
oOh!media said net debt at 31 December 2020 would be between A$120 million and A$130 million. It has signed an agreement to refinance its debt facilities and continues to operate within its covenants, it noted.
oOh! CEO Brendon Cook said: “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.
“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.
“We are 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.”
*In the latest edition of The Moodie Davitt eZine, oOh!media Chief Commercial and Product Officer Robbie Dery comments on a new world of experiences, engagement and consumers in a special Sight Lines feature. Click here for access.
