oOh!media stock falls after raising FY25 operating expense guidance

Published 18/08/2025, 10:28
 oOh!media stock falls after raising FY25 operating expense guidance

Investing.com -- oOh!media Ltd stock dropped 10% after the outdoor advertising company raised its full-year operating expense guidance despite reporting strong first-half results.

The company now expects FY25 operating expenses to be between A$159 million and A$161 million, up from the previous guidance of A$153 million to A$155 million. This increase in projected costs overshadowed otherwise positive first-half performance.

For the first half of 2025, oOh!media reported revenue of A$336 million, representing a 17% increase YoY and coming in line with consensus estimates, though 5% above Jefferies’ forecast. Gross profit rose 16% YoY to A$226 million, exceeding both Jefferies’ and Street expectations.

The company’s EBITDA post AASB16 reached A$153 million, up 23% from the previous corresponding period, outperforming analyst projections by 11% versus Jefferies and 7% versus Street consensus. Underlying net profit after tax and amortization (U-NPATA) grew 46% YoY to A$27 million.

Looking ahead, oOh!media indicated that third-quarter pacing is up 5%, with August and September showing improvement following a softer July. The company expects second-half adjusted gross margin to improve compared to the first half, with a full-year projection of approximately 44%, which is lower than the 44.7% previously guided at the Annual General Meeting.

Despite the increased expense outlook, management stated that gearing will remain within target, below 1x adjusted underlying EBITDA. The company also expressed confidence that outdoor advertising will continue to gain revenue share in the broader advertising market.

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