oOh!media Limited (ASX:OML) (oOh!) today announced its financial results for the year ended 31 December 2020 (“CY20”).
(New) Chief Executive Officer, Cathy O’Connor told us “The unprecedented restrictions on people movement and resulting audience decline impacted Out of Home more severely than other media segments. In response, oOh! acted quickly and decisively to maintain and strengthen our competitive position. That included a $167 million equity raising, refinancing of debt facilities, negotiation with property partners to deliver $63 million in net fixed rent savings, capital expenditure reduction of $49 million and operational cost savings of $16 million (excluding JobKeeper). In the meantime, the Company adapted and refined our offer to advertisers, leveraging the strength of our suburban and regional network. The Company also continued to invest in our network assets, including key digital sites such as Military Road in Mosman. The Company remains focused on margin growth through the recovery cycle by achieving rent reductions beyond 2020, delivering structural cost savings approaching $10m annual run rate achieved at the end of CY20 and remaining disciplined on capital expenditure. As a result, oOh! has strengthened its capacity to manage in the current environment while remaining well positioned to leverage the audience and revenue recovery already evident across our key formats.”
In a challenging year for the Out of Home segment due to the COVID-19 pandemic, oOh! reinforced its market leading position by increasing its market share in Australia and New Zealand. Additionally it implemented a series of measures to strengthen its financial position and reduce its cost and capital expenditure base by over $120 million.
As a result, oOh! remains well placed to leverage the strong audience and revenue recovery experienced in the final quarter of 2020 and in early 2021, particularly in its key formats of Road, Retail and Street Furniture, while capitalising on the longer term structural growth opportunities in Out of Home.
- Increased market share in Australia and New Zealand, maintaining #1 position
- Strong audience and revenue recovery in Q4CY20 – Revenues at 70% of the prior comparative period vs 57% in Q3
- $167m capital raised in 1H and debt refinanced in 2H
- Further strengthened balance sheet with over $120m cash savings delivered in CY20:
- net fixed rent temporary expense savings of $63m in CY20
- capital expenditure reduction of $49m vs February 2020 guidance
- operational expenditure savings of $16m (excluding JobKeeper)
- gearing ratio (Net Debt/Underlying EBITDA) 1.8 times vs 2.6 times (31 Dec 2019)
- net debt $111m (down from $346m)
- Revenue declined by 34% to $426.5m for CY20. Significant revenue recovery in Q4 across key formats (Road, Retail, Street Furniture, NZ)
- Underlying EBITDA of $63.2m in CY20 compared to $139.0m in CY19
- Underlying NPATA loss of $8.0m compared to $52.4m profit in CY19
- Reported Net Loss after Tax of $35.7m for CY20 (post AASB16**)
Impact of Accounting Standard AASB16/ oOh!’s financial results in the Annual Financial Report are presented in accordance with the leasing standard AASB16. Full details of the result after the application of the AASB16 standard are contained in the Operating and Financial Review within the Directors’ Report and should be read in conjunction with this announcement.