Why the oOh!Media (ASX:OML) share price has dropped 18% in a month

Lockdowns have taken their toll on outdoor advertising.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The oOh!Media Ltd (ASX: OML) share price is tumbling as the effects of the pandemic on its business are becoming increasingly apparent.

Shares in oOh!Media closed today's trade at $1.51 – 1.95% lower than Friday's close.

The oOh!Media share price has also fallen 18.55% in just 30 days.

The significant fall has occurred despite the out-of-home advertising company not releasing any price-sensitive news since May.

Let's take a look at what might be driving the oOh!Media share price down lately.

sad, unhappy outdoor advertising billboard, abandoned advertising billboards

Image source: Getty Images

COVID-19 taking its toll

As most would assume, as people stay at home while lockdowns rage, less money is put into outdoor advertising. And that's exactly what's happened to oOh!Media.

It reported a 34% drop in revenue in its results for the 2020 calendar year. The oOh!Media share price also fell 46% over 2020.

PwC's Australian Entertainment. & Media Outlook 2021- 2025 found the media and marketing landscape has shifted considerably since the beginning of the pandemic, with out-of-home advertising one of the hardest-hit segments.

However, it reports it's starting to see "green shoots" from the segment, driven by demand for roadside billboards.

Unfortunately, over the last month, Australia has experienced the greatest number of people in lockdown since early 2020.  

Since this time last month, areas of Queensland, Perth, Western Australia's Peel region, Darwin, and Alice Springs have had lockdowns imposed and lifted again.

Meanwhile, Sydney has been enduring a 3 week 'soft' lockdown and has another 11 days of hard lockdown to get through in an attempt to shake the COVID-19 Delta strain.

Similarly, Victoria entered what was a 5-day lockdown last Thursday. Today, it was extended for an indefinite period.

Additionally, oOh!Media has reportedly decided to sell Junkee Media by the end of the year. The decision may be another weight on the oOh!Media share price lately.

It seems it might get tougher for the oOh!Media share price, Sydney, and Victoria before it gets better.

oOh!Media share price snapshot

The company's poor performance over the past month has pushed the oOh!Media share price into the ASX red.

It's currently 8.7% lower than it was at the start of 2021. However, it has gained 81.4% since this time last year.

The company has a market capitalisation of around $906 million, with approximately 598 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

Woman in red hat with scarf rejoicing in the city park with leaves falling.
Share Market News

Here's what happened to Wesfarmers shares in April

Wesfarmers had a rather strange April...

Read more »

A jockey gets down low on a beautiful race horse as they flash past in a professional horse race with another competitor and horse a little further behind in the background.
Consumer Staples & Discretionary Shares

This exciting ASX small cap could almost double in value according to Morgans

This gaming stock is deeply undervalued, this broker says.

Read more »

Woman customer and grocery shopping cart in supermarket store, retail outlet or mall shop. Female shopper pushing trolley in shelf aisle to buy discount groceries, sale goods and brand offers.
Consumer Staples & Discretionary Shares

Why are Coles shares falling today?

Let's see what the supermarket giant reported for the third quarter.

Read more »

Family having fun while shopping for groceries.
Consumer Staples & Discretionary Shares

Coles Group shares in focus after Q3 FY26 sales rise 3.1%

Coles Group delivered above-market supermarket sales growth in Q3 FY26, while Liquor sales and trading conditions remained challenging.

Read more »

Sad person at a supermarket.
Consumer Staples & Discretionary Shares

Why did Woolworths shares just crash 10%?

Investors are pummelling the Woolworths share price today. But why?

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
Consumer Staples & Discretionary Shares

Woolworths Group Q3 sales grow as shoppers turn to value and convenience

Woolworths Group’s Q3 sales rose 4.5% to $18.1bn, with strength in Australian Food and eCommerce balancing economic headwinds.

Read more »

Woman chooses vegetables for dinner, smiling and looking at camera.
Consumer Staples & Discretionary Shares

Why I think Woolworths shares could beat the market over 10 years

Some of the best long-term performers are not the fastest growers. Consistency, scale, and predictable demand can be just as…

Read more »

Three women laughing and enjoying their gambling winnings while sitting at a poker machine.
Consumer Staples & Discretionary Shares

This ASX gaming company could deliver 20%+ returns: RBC Capital Markets

Gaming spending is holding up well, which is good news for this company.

Read more »