oOh!media has reported a 9% reduction in headcount, cutting 82 roles and identifying $12 million in annualised cost savings.
In a trading update ahead of its AGM, the outdoor media company reported March quarter revenue up 4% overall and 7% in Australia, slightly ahead of February projections. The June quarter is pacing similarly.
oOh!media said its first-half gross margin would be softer than anticipated, driven by industry-wide pressure on billboards.
oOh!media Managing Director and CEO James Taylor said the company was focused on strengthening its market position as out-of-home continues to grow.
“The Out of Home sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!’s market leadership,” Taylor said.
“The launch of MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers.”
Taylor sharpens efficiency push
Taylor said the company had also identified further savings since February.
“Since February, we have identified $12 million in annualised FY26 run rate pre-tax cash savings and an array of related operational benefits.
“This unlocks further value for our customers and shareholders.
“While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook and look forward to updating shareholders at this morning’s AGM,” Taylor added.
Taylor said he is confident further efficiencies will be identified.
Five months into the CEO role, Taylor said he is more convinced than ever about the quality of the oOh!media business and the size of the opportunity ahead.
Takeover interest builds
As previously reported by Mediaweek, the update comes as oOh!media has rejected two takeover proposals from private equity bidders, saying the offers do not reflect the outdoor media company’s intrinsic value or in simple words, too low to even consider.
The company confirmed it had received a non-binding indicative proposal from I Squared Capital at $1.45 per share, following an earlier $1.40 per share offer from Pacific Equity Partners.
oOh!media has rejected both offers, but has invited talks or updated offers.
Mediaweek has reached out to oOh!media’s investor relations team for further comments.
Top Image: James Taylor