I don't hold OML but it is on my watchlist and today's drop has made me consider buying in. I suspect the drop was due to the response to the trading update, slide 17 of the presentation.
Softening media market at the end of Q1 and into Q2 due to a decline in the broader macroeconomic environment in Australia and New Zealand
• Q1 revenues grew +3% over Q1 2022, with trading softening significantly in March vs forward pacing as at mid February with a decline in short term in-month bookings vs the pcp – particularly in Government spend (largest pcp category)
• Road +7% and Fly +88% continue to grow strongly year on year, and oOh! taking market share in 3 out of 4 Australian OMA categories1
• Street revenue continues to be impacted by launch of City of Sydney, with the share loss in this category resulting in an 1.9% share loss overall in Q12
• April media revenue is particularly soft, pacing at -10% vs pcp, however May and June media revenue stronger and pacing up on pcp, with Q2 currently slightly ahead vs the pcp
• Capex March YTD on track for guidance of $40-50M for CY23
• Share buyback commenced on 5th September 2022, with over 36 million shares bought back. This represents over 70% completion of the buyback program.
Goldman Sachs for its part just did a broker update. It has stated that OML has underperformed the industry as a whole but stated that some areas of the business are outperforming and thus still maintains its Buy rating. You can find their update in the Commsec site.
OML Price at posting:
$1.30 Sentiment: Buy Disclosure: Not Held
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