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Highlights

  • OML shares closed nearly 24% lower at AUD 1.240 on 3 May 2023.
  • On that day, OML made a 52-week low of AUD 0.980 during intraday trade.
  • At today's closing price, the stock is up 28.6% from its 52-week low price of AUD 0.980.

The previous week was a shocker for oOh!media Limited (ASX: OML) investors as the stock lost nearly 27%. Most of these losses came on 3 May 2023 after the company said it witnessed a "softening media market at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand." The company also said that April was "particularly soft". On that day, OML shares closed nearly 24% lower at AUD 1.240 after making a low of AUD 0.980 during intraday trade.

However, the company's FY22 (ended 31 December 2022) earnings were quite encouraging and the company plan a series of new product launches over the next few months. Let's scan through its FY22 numbers and guidance to assess its growth path.

OML Financial Performance

For the full year ended 31 December 2022, revenues of the company grew by 17.6% to AUD 592.6 million, driven by audience growth across the company's Out of Home formats. Its adjusted net profit after tax surged by 343% to AUD 56.2 million in the previous fiscal. This was supported by operating leverage combined with ongoing operational discipline.

In the first quarter of the current fiscal, the media company witnessed 3% annual growth in revenue. While its Road division recorded 7% year-on-year growth, its Fly divisions' revenue saw a jump of 88%.

However, the company witnessed softening of revenue in its Media and Street revenue as amid a decline in the broader macroeconomic environment in Australia and neighbouring New Zealand. But the company said that recovery is expected in May and June.

Meanwhile, OML is planning to launch oOh!motion in this month and oO1dimensions in the second half of the current fiscal. Also, OML had a cash balance of over AUD 40 million as on 31 December 2022, and the company is progressing well on its buyback plan.

OML Price Chart

OML shares have corrected nearly 19% in the last one year, and in the last three months, the stock witnessed a fall of 17.10%. At today's closing price, the stock is up 28.6% from its 52-week low price of AUD 0.980, clocked on 3 May 2023.

 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, is 10 May 2023. The reference data in this report has been partly sourced from REFINITIV.