Cactus Imaging parent company oOh!media has announced its financial results for the year ending 31 December 2024.
Revenue increased 0.3 per cent to $635.63 million for calendar year 2024 (CY24), while profit was 5.7 per cent higher at $36.577 million.
oOh! CEO, Cathy O’Connor, said “After a disappointing first half, we took action to drive revenue and market share growth and right-size our cost base which delivered improved momentum in the second half. Pleasingly, this momentum has accelerated in CY25, with double-digit revenue growth in February year to date.
“The focus on successful execution of our strategy is expected to accelerate our growth ambitions: energising our go-to-market, unlocking the full potential of our network and leading in retail media.
“By making it easier for our customers to work with us, providing them with access to the best assets and audiences, and partnering with retailers to explore new revenue adjacencies, we will continue to grow our market share in an improving OOH market. Winning three new customers for reo is a validation of our retail media offering and also our ambition to be the leading independent retail media business in Australia and New Zealand
“The long-term growth outlook for OOH remains highly attractive, as the best performing category in media, having now surpassed 15 per cent of total advertising spend. As the market leader, oOh! is well positioned to continue to innovate to deliver profitable growth and drive shareholder value.”
Road
Road declined by 1 per cent in CY24, as revenue growth cycled a strong comparative period. oOh! added more than 50 new digital assets to its portfolio and strengthened its presence in Melbourne with the securing of rights to the landmark West Gate Freeway large format digital site, launching in July 2024. As part of this Victorian acquisition, a further eight new large-format suburban sites are now operational.
Street furniture and rail
Street and Rail revenue grew 3 per cent, with strong 2H growth of 8 per cent driven by the Sydney Metro launch and an enhanced Sydney-Melbourne rail offering. In CY24, 224 new digital panels were commissioned, with the remaining 25 per cent of Sydney Metro and 50 per cent of Woollahra assets set for completion in CY25.
Retail
Retail was down 9 per cent, primarily impacted by the non-renewal of the Vicinity contract. Adjusting for this non-renewal, revenue increased by 10 per cent for CY24 driven by the accelerated digitisation of the remaining portfolio and addition of 439 new digital screens across 113 centres.
oOh! is investing further in digitisation of its retail assets to offset the non-renewal of the Vicinity contract to ensure the group maintains a retail portfolio with the highest overall footfall across Australia and New Zealand.
Fly, city, and youth
Fly revenue rose 14 per cent, led by the Melbourne Airport rollout, including a new immersive digital screen in the arrivals hall. City and youth revenue increased 18 per cent. The segment, which operates on a variable rent model, remains highly attractive, with 21 new office tower assets commissioned in CY24.
Contract discipline and operational efficiency
oOh! continued its strong contract discipline during the period, with the gross profit margin improving 0.4 ppts to 44.7 per cent driven by the exit and renegotiation of lower margin contracts.
As announced in December 2024, oOh! implemented a cost reduction program in early 2025 that is expected to deliver ~$15 million in savings from CY25.As a result, oOh! expects to have an operating cost base of approximately $150 million to $155 million in CY25.
Cost savings were achieved through role restructures and lease cost reductions, while oOh! strategically invested to enhance speed-to-market and drive customer satisfaction by strengthening its media sales capability, omnichannel marketing, and inventory optimisation technology.
CY25 outlook
oOh!’s improved 2H24 momentum has accelerated into CY25, with 14 million revenue growth YTD in February 2025 and Q1 media revenue pacing up 14 per cent on the pcp. oOh! expects to drive revenue and market share growth, with further tailwinds expected from future interest rate cuts and market growth.
The OOH category is expecting mid-to high single digit growth in CY25. CY25 adjusted gross margin is expected to be broadly in line with CY23/24. CY25 capex is expected to be between $45 million and $55 million (largely funding new advertising assets), contingent upon development approvals. Gearing is expected to remain below 1.0X adjusted EBITDA.
Board change
oOh! also announced Andrew Stevens has notified the board that he is retiring as a non-executive director of oOh!, effective close of business today. Stevens has been an independent non-executive director of oOh! since 2020.
Tony Faure, chair of oOh, said, “Andrew has shown great commitment to oOh! and his extensive experience and his exposure and insights across a number of sectors has been valuable to oOh! The board and management team of oOh! have benefited from Andrew’s valuable contribution, specifically in relation to financial, technology and ESG matters. On behalf of the board and the oOh! team, we wish Andrew well for the future.”
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