oOh!media shares slump more than 27.5pc on downgrade

Investors have slammed oOh!media after it slashed its guidance ahead of its full-year result.

An Adidas advert on an oOh!Media billboard.

Outdoor advertising group oOh!media has been punished by investors for cutting its half-year guidance just a week out from its full-year results.

OOh! shares dived 27.5 per cent to $2.93 after falling more than 40 per cent during the session.

The sell-off came after the company (OML) slashed its full-year profit expectations to between $125 million and $135m, from earlier guidance of between $152m to $162m.

It said while the first half of the year had been tracking in line with expectations, trading activity for the second half had revealed a significant hit to overall media advertising spend.

Earnings for the group are normally weighted towards the second half of the year, especially in the fourth quarter, but oOh! said that trend wasn’t emerging this year.

“Trading in recent weeks indicates that this improvement will be less than anticipated and will now be insufficient to offset the significant decline currently being experienced in the third quarter,” it said in a statement to investors.

oOh! has said the integration of its Commute business, previously known as Adshel, was on track, with $16m cost synergies made in FY19 and more expected for the next financial year.