oOh!Media share price plunge tempered by robust half-year result

The advertising company has clawed back some of yesterday’s market losses, after posting a sharp lift in profit.

Ooh! Media CEO Brendan Cook, with one of the company's billboards in Sydney.

Outdoor advertising company oOh!Media has booked a profit of $6 million for the half year through June, an increase of 53 per cent year on year. Revenues increased 18 per cent to $146.6m.

oOh!Media (OML) was floated in late 2014 by Champ Private Equity and has seen strong growth driven by the digitisation of its billboards and signs, and will pay a 4c interim dividend.

The group recently bought digital news group Junkee Media, paying just under $15m for the company, which includes websites Junkee, inthemix and Faster Louder.

APN Outdoor (APO), which has a similar business model to oOh!Media, saw close to $500m of its market value wiped out on Monday after a guidance downgrade led to a 35 per cent plunge in its stock price, sparking concerns the industry’s golden run may have come to an end. Shares in oOh!Media plunged 15.77 per cent on Monday.

The group said digital revenues were now generating 44.5 per cent of total revenue, up from 29 per cent this time a year ago.

“The business posted strong results, with diversified revenue growth underpinned by solid margin expansion,” chief executive Brendon Cook said.

“We are investing now to be the new media business of today and into the future. This is being achieved by building a diversified and unparalleled portfolio of assets to deliver a world-leading approach to audience based connections,” he said.

Mr Cook reaffirmed the group’s guidance for earnings before interest, tax, depreciation and amortisation of between $68 and $72m for the full year.

As of 10.30am (AEST) the company’s share price was up 6.8 per cent to $5.02, against a broader market gain of around 0.3 per cent.