oOh!media abandons earnings guidance

oOh!media has dumped its earnings guidance for 2020, blaming market uncertainty caused by the coronavirus.

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

oOh!media has dumped its earnings guidance for 2020, with the outdoor advertising firm blaming the declining macroeconomic conditions and market uncertainty caused by the coronavirus, making it the first company within the Australian media sector to be hit by COVID-19.

The group said revenue for the year to date has been in line with last year, with the first quarter consistent with delivering full-year earnings guidance provided at its 2019 results on February 24.

"However, the deteriorating macroeconomic conditions and resultant market uncertainty caused by COVID-19 has made forecasting full year revenue in the current environment difficult," oOh!media said in a statement before the start of trade on Monday.

This is particularly relevant for the company, given it has nine months remaining in its financial year to December.

In accordance with continuous disclosure obligations, oOh! has withdrawn its 2020 earnings guidance "for the time being".

"The company is taking decisive action to proactively manage the business through this period and ensure it remains well positioned for when conditions stabilise, and continues to make every effort to achieve the prior earnings guidance," oOh!media said.

The company, which last reported a 5 five per cent drop in annual underlying earnings after cutting its guidance in January, said its capital expenditure is being "re-prioritised and will be materially below" the bottom of its previous guidance range of $60-$70 million". As a result, the group has also withdrawn its full-year capital expenditure guidance.

"oOh! remains vigilant on cost and is maintaining strict cost and cashflow discipline throughout the business. Once market conditions stabilise, the company will seek to reinstate earnings and capital expenditure guidance," the group said.

Outgoing chief executive Brendon Cook last month said the group continued to outperform the broader market, which declined an estimated five per cent.