Cuts are underway at oOh!media, with the outdoor media company outlining a cost reduction of at least $15 million as part of a restructuring plan that is set to roll out in early 2025.

The announcement was made via a trading update posted to the ASX this morning, with oOh! reporting a 2% growth in Q3 revenue compared to the prior corresponding period (pcp), with Q4 expected to fall between a 3% and 6% increase on the pcp. Group revenues for CY24 are projected to be between $633m and $638m.

Chief executive officer Cathy O'Connor cited "a challenging period for the wider media and advertising market", stating the company was taking "decisive action to ensure that we can operate sustainably through the cycle".

Per the market update, the restructure is intended to simplify operations and drive stronger performance, with cost reductions focused on "operating and non-rent cost of goods lines" to offset the impacts of inflation and additional business investment.

"Today we are announcing initiatives to drive revenue growth and right size our cost base," said O'Connor. "These initiatives will position us to protect our #1 market share and grow revenues and earnings as market conditions improve. We remain highly confident in the long-term attractiveness of the Out Of Home (OOH) category, which continues to outperform the wider media market, with its market share growing to 15.1%1 at the end of October 2024. As the market leader in Australia and New Zealand, oOh! Is strongly positioned."

Elsewhere in oOh!'s results, adjusted underlying EBITDA for CY24 is expected to be between $125m and $128m, before accounting for a one-off restructuring charge of between $3m and $5m and the previously announced $4m in one-off consulting costs. After accounting for these one-off charges, oOh!'s CY24 adjusted EBITDA is expected to be between $116m and $121m.