Shares in oOh!media Ltd (ASX: OML) were trading solidly higher on Thursday after the company released a positive trading update ahead of its annual general meeting.
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Strong quarterly performance
Shares in the company were more than 4% higher at $1.35 apiece, after the company said in a statement to the ASX that it was expecting first-quarter revenue growth of 7% for Australia and 4% for the group, slightly ahead of projections from February.
oOh!media said its Operational Excellence program and its exit from retail media delivered a 9% headcount reduction and $12 million in annualised savings from FY27.
The company said on the downside that first-half gross margins would be softer than anticipated.
oOh!media Managing Director James Taylor said:
The Out of Home sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!'s market leadership. The launch of MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers. "Since February we have identified $12 million in annualised FY26 run rate pre-tax cash savings and an array of related operational benefits. This unlocks further value for our customers and shareholders. While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook and look forward to updating shareholders at this morning's AGM.
Takeovers remain in play
The updates come following two recent takeover offers lobbed for the company by I Squared Capital for $1.45 per share, and by Pacific Equity Partners for $1.40 per share.
Chair Tony Faure told the company's annual general meeting on Thursday that "the Board, together with our advisers, has considered and unanimously determined that they do not adequately reflect the intrinsic value of oOh!''.
He added:
However, we are prepared to engage with all parties to assess whether any proposal may emerge that is capable of being recommended by the Board. oOh! will provide parties with access to a limited amount of due diligence information to enable them to assess revised proposals that may be capable of the Board's recommendation. We are committed to moving at pace as we evaluate the offers, with a firm focus on achieving the best outcome for shareholders.
Mr Faure said oOh!media was also engaging with other parties regarding a potential change of control transaction.
oOh!media shares have traded as high as $1.83 over the past 12 months and as low as 84.5 cents.
The ASX media company is valued at $686.7 million.
