oOh!media has reported a 7% revenue growth and a 10% increase in net profit after tax (NPAT) to $34.6m for the full 2023 calendar year.

The company has successfully retained 75% of large contracts expiring in 2023. New contracts are expected to deliver $30 million in annualised revenue upside from mid-2024. The company has also secured long-term contracts with two customers and initiated a pilot program with a major Australian retailer for its new retail media offering, reooh.

Group revenue was up 7% to $633.9m, driven by a 14% increase in the Road (billboard) division. The Out of Home market grew at 8% after adjusting for the City of Sydney contract. The reooh division, focusing on retail or in-store signage, secured two long-term contracts, with one major Australian retailer signing on for a pilot program in Q1 CY24. Three new contracts were secured (Sydney Metro, Sydney Metro Martin Place and Woollahra Council) representing approximately $30 million in annualised revenue upside from mid-2024.

The company's full-year dividend is up 17% to 5.25 cents per share, fully franked, reflecting the increased revenue and operational improvements. Adjusted EBITDA stands at $130.2m, up 2%, reflecting the increased revenue, partially offset by increased rent and lower rental abatements.

The Group completed its on-market share buyback programme, having bought back 59,864,587 shares for a total of $82.4 million over the course of the programme at an average of $1.37 per share. The Group's financial position remains strong with net debt at 31 December 2023 at $83.8 million compared to $32.9 million as at 31 December 2022.

Chief Executive Officer, Cathy O’Connor, commented on the results, “We delivered a solid result which highlights the financial discipline and operational improvements that are positioning oOh! to capitalise on the continued growth of Out of Home which remains the fastest growing media segment.”

She added, “The Group is developing innovative new revenue streams while remaining disciplined on our approach to renewing existing contracts or winning new contracts. This is expected to strongly position oOh! to retain market leadership and build revenue in a rapidly evolving sector.”

Looking ahead, O’Connor stated, “Our focus remains on leveraging the structural growth opportunities in Out of Home to build profitable market share, while also diversifying into new adjacent revenue streams to deliver long-term sustainable earnings growth.”

The company expects mid to high single digit revenue growth for the industry in CY24.

More details on oOh!'s various formats were also released:

Road The Group’s Road (billboard) division delivered a strong result compared to the prior year. Revenue increased by 14% to $218.4 million. Momentum continued into the second half with 2H revenue up 16% compared to the prior corresponding half.

Street Furniture and Rail Revenue in Street Furniture and Rail increased by 1% to $197.7 million. Revenue increased in the second half, up 4% on the prior corresponding half, following a decline in the first half which was impacted by the previous introduction of a competitor’s significantly expanded City of Sydney offering in September 2022.

Retail Revenue in the Retail format increased by 2% to $145.2 million compared to the prior year. oOh! expanded its Retail digital footprint by adding 380 new digital panels to over 44 new and upgraded centres.

Fly The continued recovery in air travel reflected strong revenue growth in the Fly category which increased by 29% to $43.7 million on the prior year. Revenue growth in percentage terms was stronger in the first half when compared to a prior period which was impacted by the COVID Omicron variant which reduced air travel.

City & Youth (Formerly Locate) Revenue was steady on the prior year at $17.7 million. Revenue in the second half grew 10% on the prior corresponding half, reflecting the continued slow return of audiences to Central Business District office environments. Adjusting for the sale of the Café and Venue business, revenue on a like for like basis in the format increased by 9% on the prior year.