Some good news amid yesterdays second big sell-off in a row (thanks to Donald Trump). Shares in out of home ad group oOh!media soared by more than 30% after it upgraded earning guidance for the financial year ending December 31.
The company said it now expects FY19 underlying earnings before interest tax depreciation and amortisation (EBITDA) to come in between $138 million to $143 million, excluding integration costs and the impact from the change in accounting standards to AASB16.
Previous guidance was for EBITDA of between $125 million to 135 million for the 2019 financial year.
Whileadvertising bookings declined in the third quarter versus the prior year, improved bookings for September and the fourth quarter, which have paced positively over the prior year, have resulted in an upgrade, the company told the ASX.
Growth in operational expenditure in FY19 is expected to be within the previous forecast range of 5-7 percent, the company said in the update
Capital expenditure for FY19 is expected to be at the mid to lower end of the $55-$70 million forecast range.
The Company reconfirms that the integration of Commute remains on track with an expected exit run-rate of $16 million in cost synergies for FY19, directors said.
OML expects to release its results for the year ending December 31 on February 24 next year.
OML shares soared to a high of $4.17 following the earnings upgrade before settling back to end up a still high 23.6% at $3.72.
With the ASX suffering another big fall yesterday the sharp rise in OML shares seems to have been linked to desperation by traders looking for good news from any source.