Investors in outdoor advertising business oOh!Media Ltd (ASX: OML) have enjoyed a strong run in 2025.
The company's share price climbed from $1.19 apiece in early January to close out last week at $1.77 per share.
This rally represents an impressive 49% gain in less than eight months.
In contrast, the All Ordinaries Index (ASX: XAO) grew by 8.8% over the same period.
But today is proving more challenging for shareholders in this ASX All Ords media stock.
It appears the market hasn't responded warmly to the company's results for the first half of FY25 (H1 FY25) released this morning.
Shares in oOh!Media are changing hands at $1.60 apiece at the time of writing, marking a 10% dip from Friday's close.
Let's take a closer look at how the first six months of the year unfolded for the company.
Image source: Getty Images
Innovative advertising business
Firstly, oOh!Media is a leading player in the out-of-home (OOH) advertising sector – a channel designed to engage consumers while they're on the move.
This includes billboards, bus shelters, and digital displays in high-traffic public spaces.
And oOh!Media operates a network of more than 35,000 digital and static sites across Australia and New Zealand, spanning roadsides, shopping centres, airports, train stations, and universities.
According to the company, OOH is the fastest-growing advertising sector, having captured a record 16.5% share of agency media in H1 FY25.
Results in focus
oOh!Media appears to have unveiled a solid set of numbers for the half-year, despite today's fall in its share price.
The ASX All Ords media stock reported $336.2 million in revenue for H1 FY25 – up by 17% from the same time last year.
This growth was driven by three formats of advertising: Road, Street Format and Rail, and Fly.
Road revenue of $120.3 million jumped by 19% from the previous corresponding period. Street Format and Rail revenue grew by the same amount to clock in at $108 million. And Fly revenue soared by 43% to reach $31.8 million.
This momentum translated into higher earnings.
Adjusted gross profit climbed by 13% to $140.6 million, with new contract wins contributing about 20% of total revenue growth.
Underlying operating earnings (EBITDA) also increased by 27% to $62.2 million.
And adjusted underlying net profit after tax (NPAT) of $26.5 million lifted by 46% from the same time last year.
The board of directors declared a fully franked interim dividend of 2.25 cents per share for the half year, up by 29% from a year ago.
This stemmed from the company's strong earnings performance, improved financial position, and management's confidence in the business outlook.
oOh!Media managing director and CEO, Cathy O'Connor, said:
Out of Home remains the best performing channel in Australian media, and with our market leading portfolio of over 35,000 assets reaching 98% of metropolitan Australians weekly, we are well positioned to continue our strong momentum in a rising market.
Leadership changes
The ASX All Ords media stock will soon have a new captain steering the ship, with Cathy O'Connor set to step down after more than four years leading the company.
She will be replaced by newly appointed managing director and CEO, James Taylor, who is expected to commence his role in late 2025 or early next year.
Mr Taylor is currently the managing director of Australia's multicultural broadcaster, Special Broadcasting Service (SBS).
What next for the ASX All Ords media stock?
Looking ahead, management noted that media revenue in the third quarter of FY25 is tracking 5% higher year on year, despite a soft start to July.
The company expects to gain further market share over the remainder of the year as new assets come online, excluding retail and New Zealand.
That said, oOh!Media's share of the Australian and New Zealand OOH market edged down in H1 FY25, slipping from 35.8% to 35.4% year over year.
On the profitability front, adjusted gross margin is forecast to improve to around 44% for the full year.
Capital expenditure is anticipated to range between $53 million and $63 million, with investment priorities focused on delivering revenue growth and nailing down concession renewals.
More broadly, management expects OOH advertising to keep gaining share from other media formats.
It projects the sector to expand at a mid-to-high single-digit growth rate in H2 FY25.
