oOh!media (ASX:OML): Second-Half Momentum Builds After Subdued FY26 First Half

Sonal Goyal

17 August 2026 10:29 AM AEST

oOh!media (ASX:OML): Second-Half Momentum Builds After Subdued FY26 First Half

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Key Highlights

oOh!media has reported 1H26 Revenue of $340.9 million, with adjusted underlying gross Margin of 37.5% and adjusted underlying EBITDA of $48.1 million.
Australian Q3 revenue is pacing 14% higher, while more than 100% of the prior year's closing Australian Q3 revenue had already been booked.
Operational changes and the exit from the reo retail media Business have generated $12 million in annualised savings, with a further $1 million to $2 million run-rate opportunity identified.
The company ended June with net Debt of $129.3 million and a gearing ratio of 1.0x, while a fully franked 2.00 cent Interim Dividend was declared.

oOh!media Limited (ASX:OML) entered the second half of FY26 after a subdued first-half trading period, with Group revenue reaching $340.9 million. Adjusted underlying gross margin was 37.5%, while adjusted underlying EBITDA was $48.1 million. The company attributed the softer performance primarily to weaker conditions in the Billboards category, where brand-led Advertising Demand moderated during the second quarter against a comparatively strong prior period.

Billboards revenue declined 2% to $117.5 million. Other formats produced more varied outcomes, highlighting differences across the company's advertising portfolio and geographic markets.

Street Furniture & Rail revenue increased 3% to $111.6 million. Australian revenue within the format rose 18%, supported by Sydney Metro and Melbourne Metro Tunnel activity, together with the ramp-up of Waverley and other digitisation initiatives. New Zealand revenue declined 57%, following the October 2025 exit from the Auckland Transport contract.

Retail revenue increased 1% to $59.2 million, representing its first period of growth in six half-year periods. The company linked the improvement to a revised go-to-market approach, a broader digital presence and the introduction of MOVE audience measurement.

New Contracts and Measurement Technology

The onboarding of the Transurban and Melbourne Metro Tunnel contracts represents an important addition to oOh!media's asset portfolio. These contracts are also contributing to the company's reported second-half revenue momentum.

MOVE, the company's new audience measurement system, has been introduced across Retail, Regional, Office and Study formats. Its rollout is intended to provide advertisers with additional audience data when evaluating advertising placements. Office & Study revenue rose 7% to $10.0 million in the first half, while Retail revenue increased 1%.

Airports revenue rose 5% to $33.6 million. Trading in the format was affected during the second quarter by disruption associated with the Middle East conflict before subsequently recovering.

Cost Measures Reshape the Earnings Base

During the first half, oOh!media completed actions under its Operational Excellence program and exited the reo retail media business. Together, these measures are expected to deliver $12 million in annualised savings, including reductions in costs and capital expenditure. Management has also identified a further $1 million to $2 million run-rate opportunity.

The planned reo exit was completed on 30 June 2026, meaning the business will no longer contribute to revenue from the second half. The removal of these operations is expected to change the composition of reported results while allowing management to concentrate resources on the company's core Out of Home media activities.

Second-Half Trading Indicators

The company has reported a notable improvement in forward trading indicators entering the second half. Australian Q3 revenue is pacing 14% higher, supported by Out of Home advertising demand and newer Assets such as Transurban. More than 100% of the previous year's closing Australian Q3 revenue had already been booked.

Automotive, Communications and FMCG were ahead of the corresponding period, while Media and Entertainment remained among the categories still developing. The company also expects the cost actions implemented during 1H26 to provide greater fixed-cost Leverage in the second half.

Conclusion

oOh!media's FY26 first-half performance reflects weaker advertising conditions in Billboards and a significant decline in New Zealand Street Furniture & Rail revenue following the Auckland Transport exit. At the same time, growth across several Australian formats, the onboarding of major contracts, cost reductions and improving forward bookings provide a different operating picture for the second half. With Australian Q3 revenue pacing 14% higher and the company continuing to expand audience measurement through MOVE, the next reporting period will provide further evidence of how these operational changes translate into financial performance.

FAQs

Q: What was oOh!media's revenue in 1H26?

A:Group revenue was $340.9 million for the six months ended 30 June 2026.

Q: How did oOh!media's major advertising formats perform?

A:Billboards revenue declined 2% to $117.5 million, Street Furniture & Rail increased 3% to $111.6 million, Retail rose 1% to $59.2 million, and Airports increased 5% to $33.6 million.

Q: What is driving oOh!media's Q3 revenue outlook?

A:Australian Q3 revenue was pacing 14% higher, supported by Out of Home advertising demand, newer assets and increased bookings. More than 100% of the previous year's closing Australian Q3 revenue had already been booked.

Q: What cost savings has oOh!media achieved?

A:Operational Excellence initiatives and the reo exit are expected to deliver $12 million in annualised savings, with an additional $1 million to $2 million run-rate opportunity identified.

Q: What was oOh!media's financial position at 30 June 2026?

A:Net debt stood at $129.3 million, with a gearing ratio of 1.0x. The company also declared a fully franked interim dividend of 2.00 cents per share.

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