oOh!media has announced that Auckland Transport Authority (ATA) will not renew its contract, which was set to expire at the end of September. The contract represented approximately 4 per cent of oOh!media’s reported revenue for the 2024 financial year. Auckland Transport Authority has indicated that it plans to transition out of the current agreement by October.
oOh!media is an outdoor advertising company that provides various advertising solutions, including billboards and digital displays. In a statement to the ASX on Tuesday, oOh!media expressed its disappointment with the outcome but affirmed that it had anticipated this possibility. The company remains confident in its ability to maintain a leading position within the New Zealand out-of-home advertising market.
oOh!media also stated that it maintains a diverse lease maturity profile and adheres to strong contract discipline. Its focus remains on achieving sustainable margin and earnings growth, as well as strong returns on capital. Despite the loss of this contract, the company is focused on maintaining its financial health and market position.
On Monday, oOh!media’s shares closed at $1.72, marking an almost 45 per cent increase this year. The company will now focus on other opportunities in the New Zealand market to mitigate the impact of the lost contract.
