oOh Media responds to ASX query after share price plunge
The Australian Securities Exchange (ASX) has approached oOh Media with questions about a recent listing, after its share price plunged last week over a trading update.
The ASX questioned whether oOh Media has played by its book, as ASX-listed companies are required to immediately disclose to the market any information “that a reasonable person would expect to have a material effect on the price or value of the entity’s securities”.
The out-of-home company’s CEO Cathy O’Connor and CFO Chris Roberts spoke at the Macquarie Australia Conference last week. Their presentation painted a softer half-year for oOh Media so far, demonstrated by the loss of 1.9% overall market share in Q1 (attributed to QMS launching its City of Sydney network) and a 10% decline in media revenue year-on-year.
After the presentation, oOh Media’s share price dropped to a low of $0.98 on 3 May – a 39.9% decrease from the prior day’s close of $1.63.
oOh Media responded on Monday that it did not expect the trading updates to have a material effect on the share price.
The company explained that it does not generally provide monthly revenue results, as they indicate only the company’s position at a certain point, and that it “does not mean that the situation will prevail at the end of the reporting period”. It said the previous full-year report was weighted toward H2 and Q4 earnings.
Other updates released during the presentation included a 7% and 88% growth in Road and Fly segments.
oOh Media’s share price closed at $1.26 on 8 May, down 22.22% over the past five days.
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