More cost-cutting on horizon for oOh!media

Since taking the helm of oOh!media eight months ago, former SBS boss, James Taylor, now CEO of Australian out-of-home advertising giant oOh!media has delivered more than $10 million in annualised savings, with more cost-cutting now expected under the new ownership of private equity group I Squared Capital.

Brian Han, Director of leading analysts Morningstar, says: “While we mused aboiut the characterisation of oOh!media’s assets as ‘infrastructure’, the long-term structural appeal of outdoor advertising is real. But we now expect the usual private equity playbook of ‘cost optimisation’ to be deployed at oOh!media after the deal is completed in late 2026 and this is likely to be above and beyond the current cost-cutting program.”

Combined with the exit of retail media business Rio, which delivered $2m in savings, and the re-set of its New Zealand cost base, following the loss of the Auckland Transport contract, oOh!media has unlocked circa $12m, which has come alongside a series of structural changes. Taylor says the changes, which include a new sales incentive program effective from July 1^st and cross-network planning capability across major formats, have shortened the time and cost of getting assets in the ground.

“They make us faster to respond to client briefs,” he told analysts when briefing on the first half results. “They allow us to better deploy revenue across our asset base, and they align sales activity to desirable commercial outcomes.”

oOh!media reported revenue up 1.4% to $340.87m in the half year to June, but the company posted a loss of $1.232m and described the revenue growth as ‘below expectations’ in a softer than expected billboard market plus headwinds from the loss of the Auckland Transport contract.  Taylor adds: “We expect a materially stronger second half and momentum is accelerating, with third quarter revenue pacing up double-digits, and more than 100% of last year’s closing Australian Q3 revenue already booked.”

Harsh Agrawal, a senior partner at I Squared senior partner notes: ”We look forward to partnering with the oOh!media management team to build on the company’s market leadership, accelerate the digitalisation of the network and create long-term value for customers, communities and our investors.”

oOh!media operates a diversified network of more than 30,000 digital and static assets across Australia and New Zealand, spanning roadside billboards, street furniture, rail and transit networks, airports, retail environments, and other public spaces. Its scale, premium locations, breadth of formats, and extensive concession base underpin a leading market position. The company also owns multi-award winning Cactus Imaging, one of Australia’s largest and most successful printers.

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