Ooh!Media Limited (OML)
HOLD

OML - Stock Update

 4 May 2022
Sector: Communication Services

Company Overview – OML.ASX Trading Update

OML released a trading update earlier this week. The notable figures reported within the trading update are:

  • YTD April 2022 revenue growth up 15%
  • Month April 2022 growth reported at +18%
  • 1Q22 revenue was 93% of 2019 levels and 95% during April
  • 1Q22 Road, Street Furniture and Retail are 14% above 2019 levels
  • Revenue growth in 1Q22 is below the +25% industry growth reported by OMA (Outdoor Media Association)

OML mentioned they host the largest market share position in Out-Of-Home Marketing within Australia and New Zealand (44%). Digital Out-Of-Home was also mentioned as a core addressable opportunity due to public sentiment change from the Covid pandemic.

oOh!Media are still not back at pre-Covid levels, and the loss of the Sydney Trains contract comes as a notable risk however the reported growth and sentiment around digitalisation of products display a potential benefit, which supports our HOLD rating.

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