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.
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.