oOh!media (ASX:OML) will have a restructure in early 2025 as a result of lower-than-expected revenue growth amid "challenging media market conditions," according to a Thursday filing with the Australian bourse.
Revenue grew 2% year on year in the third quarter and is forecast to rise by 3% to 6% in the fourth quarter, which is lower than originally anticipated on the back of weaker short-term booking activity.
The restructure is expected to cut the company's cost base by at least AU$15 million, resulting in an estimated operating cost base of roughly AU$150 million to AU$155 million in 2025.
Group revenue for the calendar year 2024 is expected to come in at AU$633 million to AU$638 million, compared with AU$634 million recorded in the prior year.
Adjusted underlying earnings before interest, taxes, depreciation, and amortization are expected to range from AU$125 million to AU$128 million, excluding one-off costs. Including these one-off charges, adjusted EBITDA is expected to be between AU$116 million and AU$121 million.
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