oOh!Media (ASX:OML) is Australia's largest out of home media company, with 34% revenue share it is the market leader in each of its 4 divisions (oOh!Road,...

Leyland Private Asset Management

Trusted and Confidential Asset Management Advisors

oOh!Media (ASX:OML) is Australia's largest out of home media company, with 34% revenue share it is the market leader in each of its 4 divisions (oOh!Road, oOh!Retail, oOh!Fly & oOh!Place). Outdoor advertising is of particular interest to us given it is largely protected from the impact that the internet has on most other advertising platforms; TV & newspaper for example. EBITDA margins are expected to increase to above 18% in CY15 from 12.4% in CY12 due to the capital investment. The maiden result (since listing in November 2014) was 4% above prospectus forecast, with the airport (fly) division delivering most of the outperformance. Non-cash amortisation charges relating to acquisition of sites and businesses previously held impacts net profit. When adjusting for this OML trade on a PE of 16x, versus the market (x mining and financials) of nearly 20x. The media sector trades on 10x placing OML on a premium to the sector. The premium is justified in our view due to the growth profile of outdoor advertising in particular whilst the audience in traditional media channels continues to fragment.


Leyland Private Asset Management
Trusted and Confidential Asset Management Advisors

Founded in 2003, Leyland Private Asset Management is an independently owned firm specialising in Australian Stock Market and Fixed Interest Investments for individuals, companies, self-managed super funds, institutions and family offices.

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